Solar Energy Market in Canada to grow by USD 2.25 Billion (2025-2029), driven by government support for solar technology, AI-driven market trends - Technavio

NEW YORK, Jan. 28, 2025 /PRNewswire/ -- Report on how AI is redefining market landscape - The global solar energy market in canada size is estimated to grow by USD 2.25billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of  23.9%  during the forecast period. Increasing government support for solar power technology is driving market growth, with a trend towards growing adoption of pay-as-you-go (payg) model. However, competition from alternative energy sources  poses a challenge. Key market players include Azgard Solar Inc., Bird Construction Inc., BluEarth Renewables, Canadian Solar Inc., DP Energy, Gorkon Industries, Great Canadian Solar Ltd., Greengate Power Corp., HELIENE Inc., miEnergy Inc., PureSky Community Solar Inc., Quadra Power Inc., and VCT Group Inc..

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Market Driver

The Solar Energy Market in Canada is experiencing significant growth as the country shifts towards renewable energy sources to reduce greenhouse gas emissions and combat climate change. Fossil fuels, such as coal, are being replaced by hydro, wind power generation, and solar energy. BP's latest report predicts solar energy will be the cheapest source of electricity by 2025. The Paris Agreement targets net-zero emissions by 2050, driving demand for solar energy. Radiation from the sun is harnessed through photovoltaic cells to generate electricity and heat. Solar energy is a clean, low-cost alternative to traditional energy sources, reducing environmental pollution and carbon footprint. Installation, storage, and power conversion devices are essential for efficient energy use. Rural communities, often reliant on diesel generators, can benefit from solar energy's self-sufficiency. Technical expertise, trained personnel, maintenance, and operation are crucial for successful implementation. Governments offer subsidies to promote solar energy adoption, and grid connections ensure access to electricity for end-users. Technology advancements include monocrystalline, polycrystalline, cadmium telluride, and amorphous silicon cells. Solar energy is a key player in the transition to a sustainable energy future. 

Over the past decade, the affordability of renewable energy technologies, particularly solar photovoltaic (PV) and energy storage, has significantly improved in Canada. This development has been instrumental in expanding energy access, especially in off-grid areas. However, the high upfront costs of building and financing renewable-based mini-grids remain a barrier for many households. To address this challenge, a new business model called Pay-As-You-Go (PAYG) has emerged. Under this model, customers pay a small initial fee and follow up with scheduled installments, usually made via mobile phones. If a customer fails to make a payment or is overdue, the system shuts down. This innovative approach has the potential to make solar systems more accessible to a larger population in Canada. 

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• The Solar Energy Market in Canada faces challenges from fossil fuels, hydro, and wind power generation as traditional energy sources. To reach net-zero emissions, renewable energy sources like solar are crucial. BP's latest report states solar energy will overtake coal by 2025. However, solar's intermittency due to radiation from the sun poses challenges. Solar provides electricity and heat, reducing greenhouse gas emissions, population growth, and environmental pollution. Installing solar systems requires low-cost energy generation, storage, and power conversion devices. Efficiency and energy storage devices are essential for self-sufficiency. Hurdles include access to electricity in rural communities, grid connections, technical expertise, and trained personnel for maintenance and operation. Government subsidies and training and support are necessary. Solar's role in EV charging infrastructure is growing, with monocrystalline, polycrystalline, cadmium telluride, and amorphous silicon cells used in photovoltaic systems.
  
  
• The solar energy market in Canada has witnessed significant growth, but fossil fuels continue to dominate the country's energy production and consumption. According to the International Energy Agency (IEA), over 80% of Canada's energy comes from conventional sources like oil, coal, and natural gas. Setting up renewable energy farms for solar power generation is costly, and the power output from solar energy is not as high as that from fossil fuels. Despite these challenges, the solar energy sector offers potential for growth and contributes to Canada's commitment to reducing greenhouse gas emissions.

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This solar energy market in Canada report extensively covers market segmentation by  

1. Application 
• 1.1 Grid-connected
• 1.2 Off-grid
2. End-user 
• 2.1 Utility
• 2.2 Rooftop
3. Technology 
• 3.1 Photovoltaic systems
• 3.2 Concentrated solar power systems
4. Geography 
• 4.1 North America

1.1 Grid-connected-  The grid-connected segment of Canada's solar energy market is poised for significant growth, dominating the application landscape in 2024. Grid-connected solar photovoltaic (PV) systems directly supply solar energy to buildings without energy storage, with excess energy fed back to the grid and deficits sourced from it. Renewable energy sources, electric mobility, and digital grid advancements are key growth drivers. Canada's transition to solar PV systems bolsters energy security, economic growth, and environmental sustainability. Cost reductions in solar PV systems make them a cost-effective electricity provider. Residential solar systems and mini-grids have lowered the cost per watt, enabling widespread adoption. New federal and provincial energy policies encourage solar installation in homes and businesses. Canada aims to add 2 GW of renewable energy, including solar, to its grid by 2030, fueling the grid-connected segment's growth.

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Research Analysis

Solar energy is a renewable and clean source of electricity, harnessed through the use of photovoltaic cells. Canada, with its abundant sunlight and vast geographical area, presents a significant opportunity for solar energy expansion. The country is committed to reducing greenhouse gas emissions and achieving net-zero emissions by 2050, in line with the Paris Agreement and addressing climate change. Solar energy offers a low-cost alternative to traditional fossil fuel sources, such as coal, and can help reduce a country's carbon footprint and environmental pollution. The installation of solar energy systems requires technical expertise, trained personnel, and access to electricity and grid connections. Energy storage devices and power conversion devices are crucial for optimizing solar energy usage and ensuring energy availability during periods of low sunlight. Solar energy is particularly beneficial for rural communities, providing an alternative to expensive diesel generators. Government subsidies and incentives play a vital role in promoting the adoption of solar energy technology, while efficient maintenance and operation are essential for maximizing the benefits of this renewable energy source.

Market Research Overview

Solar energy is a renewable energy source that harnesses the power of the sun through photovoltaic cells to generate electricity and provide heat. In Canada, solar energy is an increasingly popular alternative to traditional fossil fuel and hydro power generation as the country aims for net-zero emissions and adheres to the Paris Agreement. Solar energy is a low-cost, clean, and sustainable solution to address climate change and reduce greenhouse gas emissions. The installation of solar panels involves the use of photovoltaic systems, including monocrystalline, polycrystalline, cadmium telluride, and amorphous silicon cells. Solar energy can be used for various end-uses, such as electricity generation for homes and businesses, as well as for heating and hot water. However, solar energy production depends on radiation from the sun and requires access to electricity for power conversion and energy storage in devices like batteries. The growth of solar energy in Canada is driven by the population's increasing demand for clean energy, the need to reduce environmental pollution and carbon footprint, and government subsidies. The technology requires technical expertise, trained personnel for installation, maintenance, and operation, and grid connections for rural communities that may not have access to electricity otherwise. The use of solar energy for self-sufficiency and EV charging infrastructure is also gaining popularity. Despite its benefits, solar energy faces challenges such as the intermittency of sunlight and the need for efficient power conversion and energy storage devices. Overall, solar energy is an essential part of the transition towards a renewable energy future in Canada.

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Grid-connected
• Off-grid
• End-user
• Utility
• Rooftop
• Technology
• Photovoltaic Systems
• Concentrated Solar Power Systems
• Geography
• North America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio