Global Rooftop Solar PV Market: Reduced Energy Payback Period to Bode Well for Market, reports TMR
The global rooftop solar PV market is highly fragmented with many regional and global players. The rooftop solar PV market is largely dominated by China-based solar companies. These companies constitute more than 50% of the global rooftop solar PV market. The local players are getting advantage of market knowledge. The market penetration is low in solar resource rich countries. The availability of traditional and renewable technologies such as wind and geothermal is expected to positioned as an alternative to traditional electricity. Complexities in other major renewable technologies will ensure the threat of substitute remains medium.
According to the report, the global market opportunity in rooftop solar PV will rise from US$1,798.1 mn in 2014 to reach US$4,584.3 mn by 2023, expanding at a 11% CAGR from 2015 to 2023. On the basis of application, the residential segment is anticipated to lead and expand at a CAGR of 13.9% from 2015 to 2023. By geography, North America will continue to lead in the global rooftop PV market and account for 32% of the market by 2023. The North American rooftop solar PV market is expected to be driven by favorable regulations by the government as well as the tax incentives offered for using this systems. In addition to this, the demand for zero emission energy source will also aid the market to grow in this region.
Reduced Battery Prices to Fuel Market Growth
The global rooftop solar PV market is driven by the demand for energy and reduced battery costs. The high efficiency offered by rooftop solar PV systems and the reduced energy payback period have also led to the growth of the market. In addition to this, tax credits and government subsidies offered for adopting rooftop solar PV systems will also contribute to the growth of the market in the long run. The support from government has led to a higher adoption of these systems worldwide. In addition to this, it is anticipated that the price of battery will reduce in the coming years, which in turn is likely to fuel the adoption of rooftop solar PV systems
Lack of Smart Grid Infrastructure to Pose a Challenge
Despite the benefits of adopting rooftop solar PV systems, the fact that they are more suitable for applications where the electricity generated should be consumed at the site itself, will act as a restraint. A lack of smart grid infrastructure leads to inefficient transmission of solar electricity to other sites. Owing to the absence of infrastructure, the trading of electricity can only be done for a limited amount. This is another problem associated with these rooftop systems. In addition to this, there exists ambiguity in terms of policy design for net metering and also, net metering has attracted negative attention from other utilities. These factors are impacting the growth of the market negatively.
On the other hand, the rooftop solar market is growing rapidly in the emerging markets and this will create new opportunities for growth in the market. “The emerging markets such as India and South Africa lack the presence of advanced grid infrastructure and will thus, opt for rooftop solar systems in the near future,” says a TMR analyst. In addition to this, the markets in South Asia such as Thailand also possess a tremendous potential for expansion owing to various government initiatives to reduce the country’s dependence on energy imports.
This information is based on the findings of a report published by Transparency Market Research titled “Rooftop Solar PV Market - Global Industry Analysis, Size, Share, Growth Trends, and Forecast 2015 - 2023.”
The global rooftop solar PV market is segmented as follows:
Rooftop Solar PV Market: By End-use
Rooftop Solar PV Market: By Region
- North America
- Asia Pacific
- Rest of the World
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