Tue, 05 Dec 2023

Where do solar market expansions occur?

30 Dec 2022, 04:58 GMT+10

Solar energy is one of the fastest-growing energy sources, with global markets spanning various industries. China and California have dominated the solar business for several decades. Nonetheless, global solar markets are expanding due to net-zero carbon emission objectives and other climate legislation. 

Which countries have solar markets that are expanding?
Although global solar energy usage is increasing, long-standing market giants dominate the industry. In 2021, China, the United States, Japan, India, and Germany will have provided more than two-thirds of the world's solar electricity.

China continues to be the greatest generator of solar energy and the world's top solar equipment manufacturer, with no plans to slow down shortly. In addition to their installed capacity of 306 Gigawatts (GW) from 2021, China installed around 30 GW of solar systems in the first half of 2022 alone. In addition, 80% of all essential solar production steps are performed in China, and this percentage is projected to rise to 95% by 2025. China's amazing solar industry dominance results from a history of ambitious energy ambitions and regulations.

The United States
From less than 9 GW of installed solar power in 2012 to more than 95 GW in 2021, the U.S. solar sector has become one of the world's most expanding. President Biden has set a goal of meeting 40 percent of the nation's electricity needs with solar energy, representing a tremendous increase from solar's current contribution of 3 percent. However, the Inflation Reduction Act and other solar incentive programs increase the likelihood that these lofty objectives will be achieved.

Nations with the most solar energy potential
Solar panels function optimally in regions with year-round sunshine. Why, therefore, do countries such as Germany, which loses a significant quantity of daylight during the winter months, have some of the world's highest solar generation capacities? Despite its exponential expansion, worldwide solar generation has a long way to go before it reaches its potential; many locations with the greatest solar power potential have some of the lowest solar generation capacity. As nations seek to enhance energy security and tackle the energy crisis, solar power potential and generation capacity may begin to converge.

Which U.S. states have solar markets that are increasing the quickest?
Similar to China on a worldwide scale, California has for years dominated the U.S. solar business. All fifty states currently have solar marketplaces due to lowering prices and growing pressure to meet sustainable energy goals. Recent federal, state, and local climate regulations and incentive programs have enabled other states to narrow California's lead in solar energy production. For instance, the Texas solar industry is expected to increase by 40,136 MW over the next five years, nearly double California's estimated market growth of 24,874 MW (MW).

Fastest growing solar market segments
We frequently hear about the progress of solar as a whole, but solar rankings and statistics are comprised of numerous types of solar markets. Residential solar energy systems, community solar projects, utility-scale solar arrays, and other solar technologies all contribute to the composition of the solar market.

Home Solar
As a result of recent power outages and increased utility bills, rooftop solar demand continues to reach new milestones. In the second quarter of 2022, approximately 180,000 U.S. households installed solar panels. It is anticipated that the IRA will increase household solar capacity by 7,3 GW over the next five years.

Societal Solar
Community solar enables households and businesses to use solar energy without putting solar panels on their land by subscribing to a local solar farm. As of Q2 2022, 41 states and the District of Columbia had installed at least one community solar installation. The U.S. community market is expected to install more than 5 GW capacity during the next five years.

Utility-scale Solar
Like community solar farms, utility-scale solar projects feed electricity into the grid but sell the electricity directly to the utility rather than customers. With about 17 GW of utility-scale solar projects committed during the first three quarters of 2022 (January 1 through September 30), the utility-scale segment is expected to drive the solar industry's growth in the next years. In addition, the United States will add 162 GW of additional utility-scale capacity over the next five years.

QuestGreens allows you to research your solar alternatives
Solar energy is an ever-evolving, low-cost, emission-free electricity source that meets the needs of homes and the natural environment. From residential solar installations to community solar subscriptions, Questgreens offers qualified comparisons to help you select a solar system that meets your energy and financial requirements.

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