Between 2008 and 2012, the global consumption of solar energy has increased from 11.2 terawatt-hours (TWh) to 93 TWh. That’s 730.32 percent!
Since solar energy is the most abundant source of green energy, it is one of the major renewable energy sources that can be used to generate power. The increase in awareness about the benefits of solar energy is driving the demand for smart solar projects as they can increase the level of solar energy output, thereby ensuring a high rate of return for the investors in solar projects.
Moreover, the increase in the cost of fossil fuels is making solar power a more economical source of renewable energy. By 2030, it is expected that approximately 20 percent of the global energy demand will be met through solar power.
What is ‘Smart Solar’?
Smart solar is the advancement in the existing solar energy technology system. This technology provides enhanced integration, support, communication, distribution, monitoring, and planning capabilities in the energy delivery systems. The introduction of such enhanced technologies in components and services has led to an increase in demand for smart solar systems.
Energy Management Through Smart Solar Technology
The majority of the power utilities are in the process of achieving an end-to-end solution for efficient management of energy. Many power utilities have started adopting various smart solar technologies such as smart solar meters to achieve the overall goal of creating a smart grid system.
Also, smart solar energy works together with the smart grid, a monitoring system wherein electricity usage information is tracked in a detailed manner. This provides an end-to-end solution as it monitors and controls energy production, transmission, and consumption.
Thus, many developed countries such as the UK, Italy, the US, and Japan are aiming to achieve this end-to-end solution by 2020. This is one of the major trends observed in the Smart Solar Market that will drive the market during the forecast period.
In addition, the technical innovations in traditional solar technology (components and services) have boosted the Smart Solar market. Various industries and commercial sectors have started adopting smart solar applications and solutions to meet their needs. As a result, major vendors as well as start-up companies are investing heavily to provide complete packages, including component deployment to solutions and services, to the customers.
Ever-Increasing Demand for Smart Solar Solutions and Services
The increase in demand for solutions and services is because of technological advancements in components (such as smart meters, solar simulators, and grid intelligent components), services, and applications of smart solar technology. Thus, most of the vendors are focusing on providing complete solutions for smart solar energy generation; that is, from components to services.
In addition, the increase in demand for energy necessitates the need for energy management solutions and demand response services integrated with the installations. Another major factor would be the intermittent nature of solar energy that requires such services to manage the solar energy better, which necessitates an integrated solution that leads to the development of smart solar technology.
All of these factors are contributing highly to the growth of the Smart Solar Market, which TechNavio analysts estimate will grow at a CAGR of 18.4 percent from 2013-2018.
