The Future of The Solar Energy Industry: 5 Trends to Watch Out For

According to a report by Allied Market Research, the global solar market was valued at $52.5 billion in 2018 and is expected to reach $223 billion by 2026. That's an annual growth rate of 20%!

So what is driving this growth? And what can we expect from the solar industry in the future? Here are five trends to watch out for:

Continued Growth of Solar Power

As reliance on fossil fuels decreases, the use of solar energy grows at an unprecedented rate. In 2020, the global cumulative PV solar capacity was nearly 770 million gigawatts. That's enough to power the average Australian household for 1,255,707,760 decades.

And this trend is only going to continue:

• Solar panel prices continue to drop: the cost of solar PV plants fell by 85% between 2010 and 2020.
• While the efficiency of those panels continues to increase: average efficiency has gone from 15% to 20%.

This makes solar a more affordable and practical option for homeowners and businesses alike.

We can expect to see even more growth in the coming years as awareness of solar energy grows and its benefits become more apparent.

Expansion Into Emerging Markets

One area where we can expect to see significant growth in the solar industry is in emerging markets. These are countries where the market for solar power is still relatively undeveloped. However, there is a lot of potential for growth in these markets.

In 2020 alone, emerging markets made up nearly 60% of global investment in renewable energy. Here are the top five markets:

• India
• Chile
• Brazil
• China
• Kenya

As the cost of solar power continues to fall, we are going to see more and more people in emerging markets turning to solar. This will be driven by the need to reduce energy costs, as well as the desire to move away from traditional forms of energy (such as coal) that have a negative impact on the environment.

Increase in Residential Solar Systems

Another trend we are seeing is an increase in residential solar power. Homeowners are increasingly turning to solar panels to provide their homes with clean, renewable electricity.

• The residential solar market is expected to grow at a CAGR of 10.5% through 2027.
• And global electricity demand continues to grow: electricity generation will rise 52% by 2040.

This trend is being driven by a number of factors, including the reduced solar costs and the increasing availability of financing options. We can expect to see more and more homeowners installing solar panels over the next decade.

Shift Toward National and Commercial Solar Projects

We are also seeing a shift toward large-scale solar technologies. More businesses and countries are turning to solar to reduce their energy costs and greenhouse gas emissions.

• Over 160 countries have renewable power targets.
• Countries like Italy have already met goals to generate 20% of their nation's electricity supply from renewable sources.

These large organizations and nations are turning towards solar for several reasons, including the falling cost of solar panels, the need to reduce emissions, and the desire to be more sustainable. We can expect to see even more of them investing in solar for years to come.

Development of New Solar Technologies

Finally, we are seeing the rapid development of new solar technology. Companies are learning to store, trade, and capture solar energy in various new ways.

This includes things like:

• Smart grids and solar farms.
• Energy storage technology, which the National Renewable Energy Laboratory cites as a key part of solar deployment.
• Concentrating solar power (CSP) plants.
• Blockchain technology to manage distributed energy resources.
• Even using ponds as a solar energy source!

These new technologies are going to play a key role in the future of the solar industry. They will help to make solar more accessible and efficient, and they will help to expand its reach into new markets.

The Future of Solar is Now

Solar is booming and growing rapidly. We can expect to see continued growth in all areas of the industry – from residential to commercial to industrial applications.

If you're a Bendigo resident interested in investing in solar, now is definitely the time to do so! Learn more about how you can get started on our products page.

‍