Global Solar Farm Market Research Report: Forecast (2023-2028)

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 & Analysis: Global Solar Farm Market (2023-28)

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 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.

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 & 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:

• Utility-Scale
• Distributed Generation

• Micro-Grids

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:

• Commercial
• Residential
• Industrial

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

• North America
• South America
• Asia-Pacific
• Europe
• Middle East & Africa

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

• In January 2023, TrinaTracker, the wholly-owned subsidiary of Trina Solar, signed an 875MW solar tracker supply contract with Samsung C&T (SSCT) for Qatar’s largest solar plant, in which it will supply 2 PV plants, viz., 417MW in Mesaieed Industrial City & 458MW in Ras Laffan Industrial City, the commercial operations of both are projected to reach by the end of 2024.
• On 23 September 2022, Hitachi Astemo announced the installation of its ground-mounted 3 MW solar power plant at Jalgaon, Maharashtra, India, built in a 43301 sqm area and consisting of 7128 ground-mounted solar panels & 10 inverters. It is the leader's first solar power plant installation in India, i.e., in line with its aim toward building a sustainable environment and becoming carbon neutral by 2050.

Do You Require Further Assistance?

1. The sample report seeks to acquaint you with the layout and the overall research content.
2. The deliberate utilization of the report may further streamline operations while maximizing your revenue.
3. To gain an unmatched competitive advantage in your industry, you can customize the report by adding more segments and specific countries suiting your needs.
4. For a better understanding of the contemporary market scenario, feel free to connect to our knowledgeable analysts.