Solar farms are areas where numerous solar panels are installed to collect solar energy & generate electricity. These are different from rooftop solar systems & commercial solar powers systems and consist of decentralized ground-mounted panels extensively installed across the land to provide power across houses, businesses, and electric grids.
According to MarkNtel Advisors, the Global Solar Farm Market is projected to grow at a CAGR of around 18.50% during 2022-27. The market growth principally attributes to the low cost of PV (Photovoltaic) panels entwined with the availability of numerous solar farm producers investing substantially in the market to generate eco-friendlier energy and cause less pollution than generated by fossil fuels.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: USA, Canada, Mexico|
|Europe: Germany, The UK, France, Spain, Italy|
|Asia-Pacific: China, India, Japan, South Korea, Australia|
|South America: Brazil, and Others|
|Middle East & Africa: GCC, South Africa|
|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, and Wuxi Suntech Power Co., Ltd.|
|Unit Denominations||USD Million/Billion|
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.
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.
Impact of Covid-19 on the Global Solar Farm Market
Based on the Type, the Global Solar Farm Market segments into:
Utility-Scale Contributed Notably to the Global Solar Farm Market
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.
Commercial Sector to Witness Maximum Demand for Solar Farms Through 2027
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, states MarkNtel Advisors in their research report, “Global Solar Farm Market Analysis, 2022.”
Based on the region, the Global Solar Farm Market expands across the following regions:
Of them all, Asia-Pacific ruled the market with the largest share in recent years and is projected to prevail the same trend in the years to come, mainly due to the mounting emphasis of different countries in Asia-Pacific on reducing GHG (Green House Gas) emissions & encouraging sustainable development in the region.
Moreover, the increasing installation of solar panels for electricity generation, especially across rural areas, and various tax benefits & incentives provided by the government for solar panel installations are other crucial aspects projected to lead the Global Solar Farm Market to witness rapid expansion across Asia-Pacific in the coming years.
Currently, China dominates the regional market, and the same trend is likely to be followed during 2022-27, owing to the strong government support through subsidies associated with solar farm installations. On the other hand, 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 market in the forecast period, mainly due to the increasing demand for solar panels for energy & distribution of solar lighting systems across North America's rural areas. The US is the rapidly emerging market in the region, with California having a substantial market share. Nonetheless, with the gradual fall of solar panels' prices, new states are also anticipated to attain a significant market share in the US in the coming years.
On the other front, Europe is expected to observe the fastest market growth in the coming years. The market in Europe is driven primarily by the increasing solar energy production in the region to reduce fossil fuel reliance, coupled with the mounting number of construction activities leading to the installation of Building Integrated Photovoltaics (BIPV) systems to generate electricity. Besides, the stringent regulations by the governments of several countries in Europe to minimize carbon emissions shall also drive the regional market in the coming years.
Possible Growth Restraints
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. The Global Solar Farm Market is likely to grow at a CAGR of around 18.50% in the coming period of 2022-27.
A. The Commercial sector is projected to witness the maximum demand for solar farms in the coming years, which would generate lucrative growth opportunities for the leading players in the market.
A. The mounting focus on energy generation through solar power & reduce carbon emissions, coupled with the cost-efficient renewable energy solutions leading to massive investments in the solar power industry, are the prime aspects driving the Global Solar Farm Market through 2027.
A. Since most governments classified solar PV plants as essential services in 2020, operations in these plants have continued amidst lockdowns. Hence, the Global Solar Farm Market is likely to witness significant growth and produce immense growth opportunities for the leading industry players in the coming years.