Solar Energy Growth Forecast in APAC region

The Asia Pacific region's efforts to expand its solar energy market in the future are driven by renewable energy targets and support policies.

FREMONT, CA: The worldwide solar energy market projections indicate substantial growth, with expectations of reaching approximately USD 215.9 billion by 2030. This expansion is anticipated to occur at a compound annual growth rate (CAGR) of approximately 11.5 per cent during the period spanning from 2023 to 2030. In terms of revenue, the global solar energy market is poised for remarkable growth, with a surge to USD 219.9 billion by 2030.

This substantial expansion can be attributed to escalating environmental concerns stemming from the increase in greenhouse gas emissions. As a result, the solar energy sector is set to experience significant growth throughout the forecast period.

The escalation of greenhouse gas emissions, culminating in air pollution, is fueling growing environmental concerns and an amplified demand for sustainable and clean energy sources like solar power. Solar energy's potential to replace fossil fuels translates into a significant reduction in carbon dioxide emissions, thereby mitigating global warming and climate change impacts, such as rising temperatures, sea level increases, and ecological shifts.

Solar energy substantially reduces the carbon footprint by curbing the reliance on fossil fuels and diminishing greenhouse gas emissions. For instance, utility-scale solar power generates 394 to 447 MWh per acre annually, preventing 121 to 138 metric tons of carbon dioxide emissions per acre each year.

While the price of solar panels has progressively declined, the initial costs of installing solar systems can still pose challenges for governments, businesses, and households. Although incentives and financing options work to mitigate this hurdle, affordability remains a concern for some. On average, solar panel costs hover around USD 16,000, with variations ranging from USD 4,500 to 36,000 based on factors such as panel type, model, inverters, and the necessary balance of system (BOS) components. This elevated initial cost could potentially impede the broader growth of the solar energy industry.

Solar panel manufacturing, often reliant on rare materials and energy-intensive processes, can exert adverse environmental effects during the production and disposal phases. To address this concern, it is imperative to prioritise recycling and efficient waste management practices. The environmental repercussions linked to solar panel disposal stand as a noteworthy impediment to the market's expansion throughout the projected period.

In the forecasted period, the Asia-Pacific region is poised to dominate the global solar energy market. This prominence is attributed to the ambitious renewable energy targets and supportive solar energy policies embraced by numerous countries in the APAC region. These policies encompass feed-in tariffs, renewable portfolio standards, and solar installation incentives. Robust governmental backing and well-structured policy frameworks have facilitated the growth of the solar energy sector in the region. Consequently, these compelling statistics are poised to propel market expansion throughout the forecasted period.