Q1 review: Sun-powered solutions to continue growth
We’ve come to the end of the first quarter, and we think that you will agree that the first three months of 2023 have flown past at lightning speed. We are fortunate enough to be very busy and we are thankful to our new and existing clients for trusting us during this extremely busy time in the market.
The solar market in the UK has continued to grow steadily during the first quarter of the year. The global renewable energy market is expected to continue its upward growth over the next years. The global solar PV panel market size was valued at over USD146 billion in 2021 and is expected to expand at a compound annual growth rate of 7.8% from 2022 to 2030. The key factors driving solar PV panel market growth include:
growing demand for clean electricity
population growth
industrialisation
government policies
tax rebates and incentives to install solar panels.
These are expected to drive solar PV panel market growth in the coming years. The deployment of large-scale storage systems to protect against peak demand power changes and increasing energy costs has resulted in the adoption of larger rooftop solar PV systems to store the desired power in batteries. Here are some of the global trends and opportunities in the solar PV market:
People development and job creation
The global market is highly competitive. Technology sourcing, skilled manpower and strong R&D are among the significant factors governing the competitiveness of the solar PV industry. Whilst the shortage of skills created by rapid growth may pose a challenge in the shorter term, filling the skills gap, together with job creation along the complete value chain from component design to installing, create long term growth opportunities. RenEnergy actively invests in the development of our staff and engages university students about the sector.
Capital requirements
The high initial capital cost of solar PV projects may be a barrier to project financing for some businesses. We offer several solutions, from RenFree where RenEnergy leases the solution to clients with zero upfront capital cost to the client, to assisting with commercial bank financing applications, and in-depth consulting to understand the client’s needs and recommend the most efficient approach to meet their needs.
Favourable government policies to curb carbon footprint
Governments of various developing and developed countries have focused on promoting sustainable energy sources and this is expected to continue to drive the renewable energy industry. Some examples of government initiatives include:
International governments, including UK, US, Canada and Mexico have committed to fully convert their own fleets of 120,000 vehicles to zero emission by 2040
France’s new law requires that that large parking lots have at least 50% of their lot covered in solar canopies
Norway’s floating hybrid solar and hydropower scheme
Government investments in renewable energy sources fuel market share
Governments across developed and developing economies are offering combinations of subsidies, tax incentives and favourable loan terms to the corporate sector to adopt renewable energy sources. This makes the investment viable for more businesses.
Increased energy demand
There is a significant increase in overall energy demand, due to population growth and technology development. Residential and industrial sectors are consuming more energy, resulting in an opportunity for solar PV to supplement overall energy production. Due to the need to balance out power supply from renewable sources, there is an accompanying growing interest in and need for energy storage. RenEnergy has international experience in both these solutions.
Looking ahead
The outlook for the solar industry is positive. With government and tax incentives, ongoing technological advancements and decreasing relative costs over time, solar energy is becoming an increasingly viable and attractive option for businesses. We are committed to pushing the boundaries of what is possible in the renewable energy sectors. For RenEnergy, it’s not just about providing power – it’s about empowering businesses to take control of their own energy needs.
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