The global distributed solar power generation market is poised to expand by USD 51.45 billion from 2024 to 2028, predicts Technavio. With a projected Compound Annual Growth Rate (CAGR) exceeding 6.41%, renewable energy investments are driving substantial market growth.
Rise of Solar Energy Investment
Renewable energy sources, notably solar, have witnessed substantial investments in the past two decades. Factors such as energy efficiency, competitive pricing, and minimal carbon emissions have propelled solar energy’s market share. In 2022 alone, the European Investment Bank allocated over USD 16 billion to renewable energy and storage projects.
Segment Overview: Installation Sites and End-users
Market segmentation highlights installation sites (on-grid, off-grid) and end-users (commercial, industrial, residential). The commercial sector, seeking alternatives to fossil fuels, particularly benefits from distributed solar power generation. Solar installations offer economic advantages amidst rising electricity costs due to carbon taxes, driving market growth.
Geographical Insights: APAC Leads the Charge
Asia-Pacific (APAC), spearheaded by China, Japan, and India, witnesses significant distributed solar power generation market growth. Off-grid and microgrid solutions, prevalent due to unreliable grid infrastructure, cater to remote areas. Government initiatives, like feed-in tariffs, fuel the adoption of solar energy, aligning with renewable energy targets.
Market Dynamics and Technological Advancements
The distributed solar power generation market witnesses notable cost reductions in solar photovoltaic (PV) systems, making solar energy increasingly accessible. Initiatives like SETO aim to further reduce costs, promoting widespread adoption. Market players, including AUXIN SOLAR Inc., Canadian Solar Inc., and Tesla Inc., leverage technological advancements to gain market share and sustainability.
Future Outlook and Market Research
The distributed solar power generation market’s promising future hinges on renewable energy adoption and government policies. Solar panels, coupled with energy storage systems, offer sustainable and cost-effective solutions. Advancements in technology and grid connectivity pave the way for a thriving market with a focus on energy trading and microgrids.
Source：prnewswire.com
