Global Off-Grid Solar Market is estimated to exhibit a CAGR of 8.62% over the forecast period (2020-2026), according to Market Research Future (MRFR). Off-grid solar solutions are an alternative for storing renewable energy amid the looming energy crisis and fluctuations in oil prices. Off-grid solar systems can work independently and store energy with the help of batteries. International agreements on lowering carbon emissions and pushing forward on sustainable development schemes are major factors driving the market.
The COVID-19 pandemic has negatively impacted the global off-grid solar market owing to the hit to production lines and shutdown of solar plants. The growth in renewable energy has risen considerably in the first quarter of 2020 owing to approval of several solar energy schemes and initiatives. According to statistics released by the International Energy Agency, distributed solar photovoltaic panels attributed close to 20% of renewable energy capacity in 2019. Installation of solar energy panels owing to their procurement by small and medium enterprises can drive the demand during the forecast period.
Adoption of Off-grid Solar Equipment in Rural Areas
Off-grid solar systems are increasingly finding applications in rural areas for providing an alternative to grid extensions. It is required for lowering the emission levels of greenhouse gases and successfully making the switch to alternative energy. Acknowledgement of solar energy and incentives provided to people can drive its sales. The Malaysian government has decided to use off-grid solar equipment for electrifying a village in Sarawak, east Malaysia.
Switch of SMEs to Solar
Small and medium-sized enterprises can take advantage of grid-based electricity to attain their needs. Grid defection rates can be lowered in situations of hybrid plants offering distributed energy services. Village lighting schemes and establishment of microgrids can lead to storage of solar energy in off-site grids. Rise of microgrid companies and crowdfunding platforms for driving investments can drive the demand in the global off-grid solar market.
High Initial Investments
The need for high capital investments for establishing off-grid panels and setting up storage points can deter market players. In addition, the hesitancy of customers in urban areas can be detrimental to market growth.
The off-grid solar market growth is expected to be modest owing to investments in renewable energy projects and initial hesitancy by various solar energy providers. The large population and increasing industrialization can induce growth for solar PV panels and grids for storage of energy.
Solar Panels to Command Heavy Market Demand
Solar panels are expected to command a heavy demand in the global off-grid solar market owing to increased capacities of the equipment and entry of various solar PV manufacturers. Low installation costs and paucity of land drawbacks are resolved easily with low cost off grid equipment. Low maintenance and management costs are likely to influence market demand significantly.
Batteries to Drive Demand in Homes
Batteries are a storage option for storing solar energy on the chance of solar panels not being utilized. Capacity and power rating of solar batteries are considered vital parameters for driving market demand. The long battery lifespan can be an attractive incentive for purchasing of batteries and off-grid equipment.
Non-residential Segment to Rule Off-grid Solar Market
The non-residential segment is expected to rule the market owing to demand for solar power by small and medium enterprises. Focus on renewable energy and steady economic growth can drive the demand for off-grid equipment. Small firms are installing solar panels for meeting their energy requirement and ending contracts with utility companies.
APAC to Rule the Off-grid Solar Market
APAC is expected to dominate the global off-grid solar market owing to the demand for solar energy, potential in renewable energy projects, and investments in rural areas. Schemes for electrification of villages and incentives provided by governments for boosting solar energy use can drive the regional market demand. Sustainable goals of countries in the region to lower carbon emission levels and meeting power demand can bode well for the market. This is exemplified by the establishment of a solar power plant by the collaboration of Shapoorji Pallonji and Private Company Limited and ReNew Power India.
North America to be a Lucrative Off-grid Solar Market
North America is expected to be lucrative for the global off-grid solar market owing to adoption of clean energy technologies and growing residential activities. Industries are largest consumers of electricity and use of thin films for storing energy in maximum sunlit areas. In addition, long-term contracts by vendors and suppliers for maintenance and servicing of panels can bode well for the market. Awareness of financial incentives and adherence to the Paris Agreement by the U.S. government can bode well for the off-grid solar market.
The global off-grid solar market is competitive with countries providing funds and grants to large companies for breakthrough innovations. Sustainable development schemes as well as aims for electrification of struggling economies are opportunities driving leading market players. Recycling and e-waste management underline the major challenges to be overtaken for gaining the edge over the competition.
Global Off-Grid Solar Market report by MRFR provides insights on renewable energy production and the scope of solar energy production. The insights gleaned from thorough primary and secondary research can act as a lodestar for future investors. It is segmented in the following manner for easier comprehension of readers:
Frequently Asked Questions (FAQ) :
Off-grid solar market is expected to strike 8.62% CAGR.
By type, the segments of the off-grid solar market are up to 10 W, 51-100 W, 11-50 W, and above 100 W.
The up to 100W segment is anticipated to secure the pole position in the off-grid solar market.
The segments assessed in the report, based on application, are commercial, residential, and industrial.
The key participants are Schneider Electric, Canadian Solar, Solar Power Rocks, SMA Solar Technology, Yingli Solar, Backwoods Solar, Su-Kam Power Systems, HelioPower, and Greenlight Planet.