Distributed Solar Power Generation Market to grow at a CAGR of 6.41% during 2024-2028
The Distributed Solar Power Generation Market is expected to grow at a CAGR of 6.41% during 2023 and 2028. During this period, the market is also expected to show a growth of USD 51.45 billion. In the realm of power generation, microgrids represent a pivotal solution for ensuring energy security and reliability, particularly in regions where power grids exhibit instability and frequent outages. Microgrids are autonomous power systems, comprising generation and energy storage resources, with clearly defined boundaries. They can function independently or collaboratively with other microgrids, and may be integrated with the main power grid, referred to as a hybrid microgrid. This integration allows microgrids to switch between grid-connected and island modes, providing uninterrupted power supply during grid outages. By harnessing the potential of distributed solar power, microgrids significantly contribute to the resilience and sustainability of power infrastructure.
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Technavio analysts predict that the On-grid subsegment will lead the Installation Sites segment during 2024 and 2028 In the realm of distributed solar power generation, on-grid systems represent a popular choice for residential consumers. These systems operate in conjunction with the power grid, enabling seamless integration with home appliances, meters, and utility networks. On-grid distributed solar photovoltaic (PV) systems offer substantial cost savings by eliminating the need for batteries and standalone equipment, thereby reducing installation and maintenance expenses. Consequently, on-grid distributed solar PV systems represent a more affordable and convenient alternative for homeowners seeking to harness solar energy.
Here are the various ways based on which the market is segmented:
There are several factors that are causing the market to flourish increasing investments in renewable energy
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The Distributed Solar Power Generation market is experiencing significant growth as the world transitions towards a zero-carbon grid. Domestic solar manufacturing is playing a crucial role in this shift, making solar power production more accessible and affordable. According to the Solar Futures Study, solar power is set to displace over 1,000 TWh of fossil fuel-generated electricity by 2050, equivalent to over 300 million Megawatt hours (MWh) per year. Solar power production, whether from solar fields or residential rooftops, is a clean energy source that contributes to decarbonisation efforts. Even on cloudy days, solar panels continue to generate electricity through the Photovoltaic (PV) effect, converting sunlight into electric current. The largest producers include China, the United States, and India, with solar farms and solar parks leading the way. Solar thermal panels also play a role in the market, converting heat into electricity through the same principle. The transmission network is essential for the distribution of this renewable energy, with Alternating Current (AC) and Direct Current (DC) systems used for different stages of the process. The carbon footprint of solar power generation is minimal, making it an attractive alternative to traditional energy sources and contributing to reducing greenhouse gas emissions.
According to Technavio, the global distributed solar power generation market is a segment of the broader global renewable electricity market, which encompasses businesses involved in the production and distribution of electricity derived from renewable sources. This market comprises independent power producers, gas and power marketing and trading specialists, integrated energy merchants, and renewable electricity providers, as well as manufacturers of solar power equipment and raw materials. The expansion of the global renewable electricity market is primarily driven by governmental policies and ambitious targets promoting the deployment of renewable power. These initiatives have fueled a substantial increase in the adoption of renewable energy sources over the past decade.
The Distributed Solar Power Generation Market is experiencing significant growth, fueled by the increasing investments in renewable energy. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.
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