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Solar power industry to generate 372 billion by 2027, report
As demand for solar power continues to grow in public, private and political arenas, BCC Research has published a new report to explore the market opportunity. The consultancy firm expects solar power to achieve a global market value of more than $182 billion in 2022, rising to almost $372 billion by 2027.
Photovoltaics (PV) will account for around 93% of total market value this year. These systems use solar panels, either on rooftops or in ground-mounted solar farms, converting sunlight directly into electric power.
The remainder of the market is held by concentrated solar power (CSP) systems, which use lenses or mirrors and tracking systems to concentrate sunlight. The resulting heat generates electricity from conventional steam-driven turbines. Compared with PV, CSP is a capital-intensive technology and requires the high levels of direct sunlight found in places like the southwestern U.S., Mexico, the Middle East, North and South Africa, and India.
“Climate change, health effects of air pollution, energy security, and energy access are all pressing against the collective conscience,” says Greg Johnson, Associate Director, Consulting, BCC Research. “Combine these concerns with the high volatility of oil prices, and we’re seeing a groundswell of interest in alternative, low-carbon technology options, with solar energy blazing a particularly lucrative trail. That’s due to its promise of continually decreasing production costs, as well as the predictability of solar irradiance and cloud cover in most parts of the world. All this upside can translate into regular cashflow for any business that decides to dip its toes into the solar waters.”
Solar PV systems are inexpensive and more accessible to install when compared with competing renewables such as wind turbines or turbines used to generate hydroelectricity. They also generate electricity with around 42% efficiency, which is two percentage points higher than wind turbine efficiency.
As well as low installation and maintenance costs, other drivers propelling solar energy forward include rising energy demand, a continuing movement to reduce dependence on fossil fuels for power generation, and tax incentives and regulatory assistance for the growth of solar PV technologies. Countries such as Germany, Spain, the U.S., China, Japan, and India have all developed significant solar capacities to meet the growing demand for energy.
“ Renewable energy generation is expected to grow fastest among all sources of power generation, overtaking coal-fired to become the largest source of energy by 2040. And among all renewable sources, solar PV technology is poised to grow faster than any other renewable during the next decade and beyond. The long-term future of solar technology is ecologically beneficial, financially advantageous, and secure.”
