The global solar generator market is expected to reach $450 million by 2019, an increase of nearly $150 million from its 2014 value. Thanks to decreasing costs of solar generators, many industrialized nations are installing large amounts of solar power capacity into their grids to provide or enhance an alternative to conventional energy sources, while less developed nations are turning to solar energy to reduce their dependence on imported fuels which are very costly.
The global solar generator market is predicted to grow steadily during the forecast period because of growing power shortages and environmental concerns. Fluctuating cost of fuels and pollution caused by conventional generators are positively influencing the market because solar generators do not require fuel and are pollution free. The use of solar generators will continue to gain popularity because they are environmentally friendly and reduce power on the main power supply.
The worldwide capacity of solar power by technology was 142 GW in 2013. The leading countries for Solar PV capacity are Germany, China and the United states who combine for almost 50% of the total market.
Source: International Energy Agency
The Asia-Pacific region will be the fastest growing during the forecast period because of increased environmental concerns and growing energy demand in Japan, Australia and mostly China. China’s rapidly growing population is increasing power demand and creating a high dependence on fossil fuels which is threatening the country’s environment. The government is now focusing on increasing the electricity generation from renewable resources to overcome environmental issues. In 2014, the government announced its ban on the use of coal in Beijing by 2020.
The future of solar power
Nearly all industry professionals are in agreeance that providing energy via solar power is great for the environment but the market’s biggest challenge is if solar power makes sense economically. At what point will solar power be competitive with fossil fuel plant generated electricity and how long will it take for solar power to stand on its own without help from subsidies?
While the economic kinks are still to be worked out, there is large untapped market as solar generators still remain a niche market concentrated only in few countries. The United States likely to become the next big destination for solar generators as the US government is expected to welcome green initiatives during the forecast period. The growing scarcity of power has also fueled the demand for solar generators in the country.
Solar generators can be promoted in other untapped markets in South America, Africa, the Middle East, and Australia. The prices of solar panels have decreased owing to advances in technology and economies of scale. This will decrease the overall price of solar generators, fueling the demand as an alternative for power backup.
