Market Definition
Solar farms are where numerous solar panels are installed in order to collect solar energy & generate electricity. These are different from rooftop solar systems & commercial solar power systems and consist of decentralized ground-mounted panels installed extensively across the land to provide power across houses, industries, & electric grids.
Market Insights
The Global Solar Farm Market is expected to grow at a CAGR of around 18.50% during the forecast period, i.e., 2023-28. The growth of the market is projected to be driven mainly by the gradually reducing costs of PV (Photovoltaic) panels and the rising availability of numerous solar farm producers, who are investing massively in the industry for eco-friendly energy generation and reducing pollution levels caused by fossil fuels.
In addition, the rapidly increasing awareness among consumers about solar farming and the need to transit the economy away from fossil fuels toward renewable energy sources also drive the market. Besides, increasing initiatives by the governments of different countries to promote solar energy production & reduce dependency on fossil fuels and, in turn, minimize carbon emissions shall also boost the market in the coming years.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 18.5% |
| Regions Covered | North America: USA, Canada, Mexico |
| Europe: UK, France, Germany, Italy, Spain, Others | |
| Asia-Pacific: China, India, Japan, South Korea, Australia, Other | |
| South America: Brazil, Others | |
| Middle East & Africa: GCC, South Africa, Other | |
| Key Companies Profiled | Brightsource Energy, Inc, First Solar, Inc., Gruppostg., Himin Solar Energy Group, Ja Solar Holdings Co. Ltd., Sharp Corporation, Shenzhen Topray Solar Co., Ltd., Tata Power Solar Systems Ltd., Trina Solar, Wuxi Suntech Power Co., Ltd |
| Unit Denominations | USD Million/Billion |
For instance, in the US, the Solar Energy Industries Association (SEIA) has implemented norms like net metering & community solar to encourage PV (solar panel) technology for electricity generation. Net metering allows residential & commercial customers (who generate their electricity from solar power) to sell the electricity they aren't using back into the grid. On the other front, Community solar provides people equal access to the economic & environmental benefits of solar energy generation regardless of the ownership of their homes or businesses.
Market Dynamics
Key Driver: Surging Adoption of Renewable Energy Sources Worldwide to Achieve Net-Zero Targets
Various countries worldwide are gradually transiting to clean energy generation in order to mitigate the rapid climate change and reduce the rising levels of carbon emissions. They are actively installing renewable energy sources, like solar farms, which act as an economical source of everyday power, i.e., stimulating the demand for PV panels.
Moreover, the rapidly rising population levels in emerging nations are directly impacting energy consumption & generation, which is why energy generation through renewable sources seems the best possible alternative to conventional power sources. Hence, in view of these trends, coupled with the shift from fossil fuels to low or zero-carbon technologies, and the surging fuel prices, are projected to drive the Solar Farm Market Globally during 2023-28.
Growth Opportunity: Favourable Government Regulations and the Ever-Increasing Demand across Emerging Nations
Governments of several countries are laying out favorable regulations for promoting renewable energy production in order to reduce their dependency on fossil fuels while reducing the alarming levels of carbon emissions worldwide. Various policies, including net metering and community solar, have been implemented by governments to encourage the use of PV(Photovoltaic) technology for power generation.
In addition, being inspired by Asia-Pacific countries like India, China, & Japan, many developing nations across the Middle East & Africa are also actively working on clean energy production and thus creating new avenues for the key companies operating in the Global Solar Farm Market to expand their presence and generate significant profits in the years to come.
Possible Restraint: High Installation Costs and the Need for Massive Land
The deployment of solar farms incurs substantial costs owing to the installation of numerous solar PV panels, which leads to affordability issues among several end-users. Since electricity generation through solar farms is done on a large scale, they are usually installed in rural areas, which indicates the need for massive land. Hence, these aspects are projected to hinder the expansion of the global market through 2028.
Market Segmentation
Based on Type:
Of them all, Utility-Scale Solar Farms significantly contributed to the market growth in recent years and are anticipated to lead the market during 2022-27. It owes principally to the superior economies of scale that surpass the savings in transmission costs induced by decentralized microgrid installations. Utility-scale solar farms have been generating reliable & clean electricity with a stable fuel price for decades. They can utilize several solar energy technologies like primary PV (Photovoltaics) or CSP (Concentrating Solar Power).
What makes them different from distributed generation is their project sizes and the fact that the electricity is bought & sold among wholesale utility suppliers and not end-users. Moreover, these solar power plants offer the incredible benefit of fixed-priced electricity during peak demand times, when electricity through fossil fuels is the costliest. Nevertheless, many utility-scale solar plants incorporate energy storage capacity that provides power in the absence of sunlight and enhances grid reliability & durability. Hence, all these aspects are projected to lead Utility-Scale Solar Farms to dominate the global market in the coming years.
Based on End-User:
Here, the commercial sector is one of the principal consumers of solar PV panels, owing to their large-scale requirement for green power. The rapidly increasing construction activities and the mounting electricity consumption by established commercial firms are soaring the demand for solar farms to employ alternative sources to meet their large-scale energy demands.
Observing the massive electricity requirements across the commercial sector, governments of different countries are actively installing solar farms across offices, malls, airports, etc., to minimize the carbon footprints. Additionally, module-level monitoring that helps customers monitor the production of each PV module, enhanced panel efficiency, and high energy yield are other crucial factors driving the demand for solar farms across the commercial sector.
Regional Landscape
Of all regions globally, Asia-Pacific has been ruling the Solar Farm Market with the largest share and the same trend is likely over the coming years. It owes primarily to the mounting emphasis of different countries in the region on reducing GHG (Green House Gas) emissions & encouraging sustainable developments, coupled with the rapidly increasing installation of solar panels for green electricity generation, especially across rural areas.
In addition, various tax benefits & incentives provided by governments for solar panel installations are also contributing to the rapidly expanding Asia-Pacific Solar Farm Market. In the region, China is the leading market, owing to the strong government support through subsidies associated with solar farm installations. Besides, India is likely to attain the fastest growth rate in the coming years, with a target to install 175GW of renewable capacity by 2022, including 100 GW from solar energy.
On the other hand, North America is expected to be the second-largest solar farm industry globally through 2028, mainly due to the mounting demand for solar panels for energy & distribution of solar lighting systems across the region's rural areas. The US is a rapidly emerging market, where California holds a substantial share. With the gradual fall of solar panels' prices, various new states are gaining traction and contributing to the overall growth of the regional market.
Furthermore, the Europe Solar Farm Market is projected to witness the fastest growth in the forecast years, mainly on account of the ever-evolving solar energy production across the region in order to reduce the dependence of fossil fuels, coupled with a rapid rise in construction activities, I.e., leading to the increasing installation of BIPV (Building Integrated Photovoltaics) systems for clean electricity generation. Moreover, stringent government regulations toward minimizing carbon emissions would continue to spur growth in the solar farm industry in Europe over the coming years.
Recent Developments in the Global Solar Farm Market
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Frequently Asked Questions
A. The Solar Farm Market is projected to grow at around 18.50% CAGR during 2023-28.
A. The rapidly rising adoption of renewable energy sources by several countries worldwide to achieve their carbon-zero targets is the key factor projected to drive the Solar Farm Market through 2028.
A. Brightsource Energy, Inc, First Solar, Inc., Gruppostg, Himin Solar Energy Group, Ja Solar Holdings Co. Ltd., Sharp Corporation, Shenzhen Topray Solar Co., Ltd., Tata Power Solar Systems Ltd., Trina Solar, and Wuxi Suntech Power Co., Ltd., are the key players operating in the Solar Farm Market.
A. Utility-Scale solar farms would lead the Solar Farm Market during 2023-28.
A. Asia-Pacific would continue generating lucrative prospects for the key companies operating in the Solar Farm Market.
A. High costs solar panel installation and the requirement for an ample space for the same are the prime aspects hampering the growth of the Solar Farm Market.
