Miniature Solar PV systems, including Pico Solar Systems and SHS, are transitioning from specialized niches to the mainstream. SHS technology already has the distinction of being a reliable power supply, in regions without a public grid.
TechNavio studies indicate that the Solar PV Consumer Products Market will grow at a CAGR of 14.9 percent for the 2013-2018 period. The market previously witnessed heightened demand from African countries, and Governments. Overcoming some serious challenges, Solar PV Consumer Products are globally emerging as a reliable replacement to fuel-based lighting.
Various advantages, such as easy installation (direct plug and play), user-friendly applications, low maintenance, high degree of flexibility, and expandability fuels its popularity. This is causing a visible impact on consumer preferences, in developing markets.
TechNavio analysts bring you three key drivers that are fueling growth in The Global Solar PV Consumer Products Market:
Growing Demand for Solar PV Consumer Products in BOP market
Solar PV Consumer Products are gaining popularity because of their various economic and environmental benefits. This, in turn, is fueling the market growth for these products. Increased demand for solar PV consumer products in developing regions, such as China, India, and various African and Latin American countries, is due to the presence of the BOP market in these countries, which is a major consumer of this technology.
The growth in China and India is such that they have emerged as leading countries in both the manufacturing and consumption of Solar PV Consumer Products. An increase in competition from Chinese manufacturers and a fall in the price of Solar PVs have led to the reduction of Solar PV Consumer Products prices, making them affordable to consumers. Moreover, it is a cleaner technology without any adverse environmental or health effects, with better illumination and longer battery life.
The battery-recharging problem is also solved through this technology. Governments across the countries are taking initiatives to provide tax rebates to make the technology economically attractive for consumers and reduce the usage of conventional fuels.
Increased Support from Governments
The main driver that influences the growth of the Solar PV Consumer Products market is the subsidies received from various governments. These tax incentives and grants are designed to encourage investment in technologies related to renewable energy generation. This, in turn, encourages many investors to invest in Solar PV, which results in an overall increase in the manufacturing and distribution
For example, in African countries, such as Kenya, Ethiopia, Tanzania, and Uganda, tariffs have been reduced or eliminated. This is extremely important for the PV industry, to increase the number of users and hence achieve economies of scale.
Governments worldwide are also increasingly investing in the quality testing and certification programs at the national level, to improve the quality of solar PV Consumer Products. They are providing feedback to manufacturers and this in turn, contributes to its quality and growth.
Decrease in Cost of Solar PV Consumer Products
A decline in Solar PV prices has resulted in the growth of the Global Solar PV Consumer Products Market. In the past decade, there has been a price decline of more than 40 percent, globally. The cost of installing Solar PV for a small residence of 3.5 kW was about US$15,200 in 2011-2012.
Now, a similar installation costs less than US$9,120. Many vendors have lowered the prices of solar PV consumer products to increase the demand, which has led to the growth of the Global Solar PV Consumer Products market.
