Distributed Solar Power Generation Market size is set to grow by USD 51.45 bn from 2024-2028, increasing investments in renewable energy boost the market- Technavio

NEW YORK, March 26, 2024 /PRNewswire/ -- The global distributed solar power generation market  size is estimated to grow by USD 51.45 bn from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 6.41%  during the forecast period.  Over the past two decades, renewable energy sources, particularly solar, have gained significant market share in power sector investments. Key drivers include energy efficiency, competitive costs, and low carbon emissions. In 2022, the European Investment Bank committed over USD16 billion to renewable energy, efficiency, and storage projects. Distributed solar power generation, including monocrystalline, polycrystalline, and cadmium telluride cells, is a growing sector, with residential and commercial sectors adopting solar PV modules for clean energy production and CO2 emission reduction. Government initiatives, such as Eco-Bonus policies and incentives for rooftop solar panels, further fuel this trend. 

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Segment Overview 

This distributed solar power generation market report extensively covers market segmentation by Installation Sites (On-grid, Off-grid) End-user (Commercial, Industrial, Residential) Geography (APAC, Europe, North America, South America, Middle East and Africa)

Market segmentation by Installation Sites
The distributed solar power generation market in the commercial sector is gaining momentum as businesses seek to reduce their reliance on fossil fuels and diesel generators for constant power requirements. With increasing electricity costs due to carbon taxes in some countries, the economic and environmental benefits of solar power are becoming more compelling. Distributed solar power systems, which generate electricity on-site, offer businesses energy independence and resilience against power outages. By harnessing the sun's energy, commercial buildings can significantly reduce their carbon footprint and contribute to mitigating the threat of climate change. The market for distributed solar power generation in the commercial sector is expected to grow as more businesses adopt this sustainable and cost-effective solution.

Geography Overview

The distributed solar power generation market in APAC is experiencing significant growth, driven by China, Japan, and India. The lack of reliable grid infrastructure in the region has led to the adoption of off-grid and microgrids, supplying electricity to remote residential and industrial areas through renewable energy sources like solar PV. Increasing carbon emissions in China and India have also fueled a shift towards renewables for power generation. Renewable energy targets and financial incentive programs, such as feed-in tariffs in China and Japan, are major contributors to this market's growth. 

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• The global electricity demand surged by 4.6% in 2021, driven by economic growth and population expansion in China and the US. Factors like transportation and heating sector electrification, digitalization, and increasing electronically connected devices fueled this growth. Distributed solar power generation, including monocrystalline, polycrystalline, and cadmium telluride cells, is a key response to this demand, with residential and commercial sectors adopting solar photovoltaic modules to reduce CO2 emissions and shift towards clean energy sources. Government initiatives, such as Eco-Bonus policies and Cooling system incentives, further boost this market.
• The distributed solar power generation market has seen significant cost reductions in solar PV systems over the last decade, with the average cost per watt decreasing from USD5.79 in 2010 to USD1.25 in 2021. SETO aims to reduce the levelized cost of energy (LCOE) of solar PV panels by 50% by 2030, with targets at USD0 for residential and commercial sectors. Solar panels, including monocrystalline, polycrystalline, and cadmium telluride cells, are driving the shift towards clean energy sources and away from fossil fuels. Government initiatives, such as the Eco-Bonus Policy and CVP, support the adoption of solar PV modules in the residential and commercial sectors, reducing CO2 emissions and promoting renewable energy production. Cooling systems and roof-top solar panels are also key components of this market.

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Key Company

Distributed Solar Power Generation Market  is fragmented ; the companies are competing with competitors and are trying to get greater market share. The market is growing, and the chances of new entrants cannot be overlooked. The major companies have well-established economies of scale and market presence and generally rely on positioning technological advances, and the price of the products. Distributed Solar Power Generation Market report includes information on the product launches, sustainability, and prospects of leading vendors including AUXIN SOLAR Inc., Canadian Solar Inc., E Solar, Enphase Energy Inc., General Electric Co., Hanwha Corporation, LG Corp., Panasonic Holdings Corporation, Schneider Electric SE, Silfab Solar Inc., Solar Panels Plus LLC, Sungevity Inc., Sunnova Energy International Inc., Sunrun Inc., Tesla Inc., TotalEnergies SE, Trina Solar Co. Ltd., Trinity Heating and Air Inc, Freedom Solar LLC, Sharp Corp.

Market Research Overview

The Distributed Solar Power Generation market is experiencing significant growth due to the increasing adoption of renewable energy sources and the implementation of government policies promoting clean energy. Solar panels installed on rooftops and in decentralized locations are becoming increasingly common, providing cost-effective and sustainable energy solutions. Modules and systems, such as photovoltaic (PV) and capacitive, are used to convert solar energy into electricity. The integration of energy storage systems, like batteries, enables the efficient use of solar power during peak hours and off-grid applications. The market is further driven by the reduction in solar panel costs and advancements in technology, making solar power a viable option for both residential and commercial consumers. The future of distributed solar power generation looks promising, with an emphasis on grid connectivity, energy trading, and microgrids.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Company Landscape
12 Company Analysis
13 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio