Solar Farm Global Market Report 2024

The solar farm market size has grown exponentially in recent years. It will grow from $96.75 billion in 2023 to $117.8 billion in 2024 at a compound annual growth rate (CAGR) of 21.8%. The growth observed during the historical period can be attributed to government subsidies and incentives, the decreasing costs of solar panels, energy policy and regulations, corporate sustainability initiatives, as well as heightened public awareness and environmental concerns.

The solar farm market size is expected to see rapid growth in the next few years. It will grow to $239.72 billion in 2028 at a compound annual growth rate (CAGR) of 19.4%. The anticipated growth in the forecast period can be ascribed to the emergence of energy storage solutions, innovations in solar farm designs, government commitment to renewable energy targets, and the expansion of community solar initiatives. Significant trends expected in the forecast period encompass the diversification of market players, a heightened focus on environmental and social impact, the digitalization of operations and maintenance, innovations in pricing and financing, and the increased adoption of bifacial solar panels.

The solar farm market is poised for significant growth, driven in large part by a surge in demand for electricity from renewable sources. Renewable energy, derived from replenishable resources, is crucial in addressing the global need for sustainable power. Solar farms, harnessing solar energy for electricity and thermal energy production, are particularly promising, capable of meeting the world's energy demand more than a hundred times over compared to other renewable sources. Notably, data from the International Energy Agency (IEA) reveals a substantial increase in solar PV electricity production, rising from 823.8 Terra Watt hours (TWh) in 2020 to 1002.9 TWh in 2021. The escalating demand for renewable electricity is expected to be a key driver of the solar farm market.

A significant contributor to the growth of the solar farm market is the decreasing costs of solar panels. These devices, converting sunlight into electricity through photovoltaic cells, have witnessed a noteworthy reduction in costs per megawatt. This cost decline enables the construction of larger solar farms, facilitating increased electricity generation and benefiting from economies of scale in land use, operation, and maintenance. A 2022 report by Sunrun, a US-based solar panel company, indicates an average annual decrease of 62% in the cost of solar panels. The downward trend in solar panel costs is anticipated to propel the solar farm market.

An emerging trend in the solar farm market is product innovation, with major companies exploring diverse applications and integration with other large-scale projects. For example, in September 2022, Starlight, an Italy-based solar farm project development company, introduced the Agri-eco Voltaics project Land of the Sun. This innovative approach combines solar photovoltaics, sustainable agriculture, and territory restoration, optimizing land use efficiency. The project aims to address future economic and social concerns while simultaneously generating electricity from the sun and supporting effective crop cultivation. The concept of dual land use, exemplified by Agri-eco Voltaics, holds potential for widespread adoption globally.

Floating solar farms, a novel approach to solar energy generation, are gaining prominence among major companies operating in the solar farm market. Also known as floating photovoltaics (FPV) or floatovoltaics, these systems offer innovative solutions. In July 2023, Noria Energy, a US-based solar developer, launched a 1.5MW floating solar power system at Colombia's Urrá Dam, marking the largest project of its kind in South America. The Aquasol floating solar project, situated at the Urrá hydropower plant, is expected to generate nearly 2,400 megawatt-hours of power in its inaugural year, surpassing the energy required to run the dam. Comprising over 2,800 solar modules, the project is forecasted to generate substantial additional electricity revenue and prevent over 1,540 tons of carbon dioxide emissions annually.

In January 2023, Equinor, a Norway-based petroleum refining company, acquired BeGreen, a Denmark-based solar farm project developer, for an undisclosed amount. This strategic acquisition enhances Equinor's solar PV capabilities and expands its renewable energy portfolio, underscoring the company's commitment to sustainable energy initiatives.

Major companies operating in the solar farm market report are Elevation Solar LLC., NextEra Energy Inc., Sharp Corporation, LONGi Green Energy Technology Co. Ltd., JinkoSolar Holding Co. Ltd., Trina Solar Co. Ltd., Avangrid Inc., JA Solar Technology Co Ltd., Canadian Solar Inc., First Solar Inc., SunPower Corporation, Sunrun Inc., Cypress Creek Renewables LLC., Momentum Solar LLC., Blue Raven Solar, Sunnova Energy International Inc., Shenzhen Topray Solar Co. Ltd., BrightSource Energy Inc., RenewSys India Pvt. Ltd., Freedom Solar LLC., Ecoplexus Inc., Southern Current LLC., Tata Power Solar System Inc., The Solaria Corporation, ADT Solar, Hanwha Qcells GmbH, Recurrent Energy LLC., Kuraray Europe Gmbh, Vikram Solar Ltd., Solar Systems Ltd.

Asia-Pacific was the largest region in the solar farm market in 2023. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the solar farm market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the solar farm market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of solar farms include surface suction, utility-scale, distributed generation, microgrids, and others. Surface suction solar farms involve panels enclosed in vacuum enclosures with low emittance coatings on their internal surfaces, ensuring efficient solar energy collection without wastage. These solar farms utilize technologies such as solar photovoltaic, mono-Si, thin film, multi-Si, and others, catering to diverse end-use industries such as residential, commercial, and industrial.

The solar farm market research report is one of a series of new reports that provides solar farm market statistics, including solar farm industry global market size, regional shares, competitors with a solar farm market share, detailed solar farm market segments, market trends and opportunities, and any further data you may need to thrive in the solar farm industry. This solar farm market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The solar farm market consists of sales of panels, batteries, inverters, and racking. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.