Solar Cell Market Size & Share, by Material (Crystalline, Thin Film); Technology (Monocrystalline, Polycrystalline, Cadmium Telluride, Amorphous Silicon, Copper Indium Gallium Selenide); Product (BSF, PERC, HJT, IBC & MWT) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

Growth Drivers

• Optimizing solar cell and storage assets with advanced monitoring & control (M&C) technologies - As the focus on rendering solar asset monitoring and control matures, stakeholders are realizing the value of data and the insights that enable the discovery of opportunities for new value streams at reduced risk. Technology innovation in M&C of solar energy storage includes the integration of AI and data analytics. For instance, in June 2024, Stem and Arizona Electric Power Cooperative (AEPCO) collaborated to launch a 40-megawatt hour (MWh) energy storage system and a 20-megawatt (MW) PV system. The M&C system integrates Stem’s Athena, an AI-driven unified platform to operate and monitor solar energy storage. It is set to transform the renewable energy sector for both consumers and prosumers. Front-of-the-meter (FTM) facilitators, asset owners, generator operators, and behind-the-meter (BTM) commercial and industrial (C&I) prosumers are adopting digital solutions for solar asset management. This has further allowed C&I prosumers to gain insights on electric vehicle (EV) charging capacity, demand response participation, program incentives, and cost savings.
  
  The growing need for an interactive grid to support the operations of decentralized renewable assets is fostering the demand for M&C solutions for FTM and BTM solar plus storage projects. Advanced M&C solutions create interconnected networks of smarter energy assets that are more reliable, which achieves grid parity and the goal of a clean energy transition. According to the U.S. Energy Information Administration (EIA), solar and battery storage will make up 81% of the country’s electric-generating capacity by the end of 2024. Its annual utility-scale solar installation spike is from 18.4 GW in 2023 to 36.4 GW in 2024. As the number of deployments increases, distributed energy resources (DER) portfolios are at risk of growing piecemeal due to the disparate M&C solutions available in the fragmented solar and storage hardware and software market. However, rising standardization in solar energy management and decreasing operations and maintenance (O&M) costs are projected to create growth opportunities for entrants. The solar and storage M&C has emerged as a key trend in the solar cell market and has a growing list of competitive industry players including Trimark, Stem, and Huawei Technologies.
• Increasing government initiatives - To accelerate the implementation of renewable energy projects the U.S. federal and state governments have implemented legislative plans. In March 2021, the Biden administration released a spending plan citing the aim to decarbonize the U.S.  Economy and minimize solar costs by 60% in the next 10 years. According to the Carbon Neutrality Coalition and the Energy & Climate Intelligence Unit, 137 countries have committed to carbon neutrality by 2050. Furthermore, the U.S. Department of Energy 2024 announced an opportunity for Solar Energy Supply Chain Incubator funding, that will provide USD 38 million for RD&D projects.
  
  Additionally, governments frequently offer financial incentives to lower the cost of purchasing and installing solar panels through tax breaks or refunds. Through these incentives, the upfront cost of solar installations is effectively reduced, making them more affordable for individuals and businesses. The goals of the government, including lowering greenhouse gas emissions and halting climate change, are in line with ecological principles.
• Demand for enhanced performance and efficiency - The need for improved energy sources is growing in several industries worldwide. The U.S. Energy Information Administration in 2023 estimated that energy imports in the country increased to 21.47 quads in 2022 as compared to previous years. As a result, producers are always developing new technologies for solar cells to provide better performance and efficiency. In addition, increased efficiency maximizes energy output while also making the best use of the available space, making solar installations more feasible for a range of uses.

Challenges

• High initial cost - Purchasing and installing solar panels can be expensive, particularly for small-scale and residential users. The price of solar cells, inverters, mounting systems, wiring, and installation labor are all included in this upfront cost, due to which businesses or individuals might refrain from using solar energy. Even though it may ultimately prove to be more cost-effective in the long run, the use of solar energy might result in long-term electricity bill savings, there is a chance that this will prolong the payback period of the initial investment.
• Complexity in manufacturing - Depending on the location and ambient temperature, solar panels can typically convert 15–22% of the sun's energy into useful energy. A home may be operated on 22% of the usable energy available during a blackout or overnight. The three main types of PV panels are thin-film, monocrystalline, and polycrystalline silicon. Because they are made of the best silicon out of the three, monocrystalline silicon panels are the most efficient type of panel. It's not easy to find PV panels with higher efficiency without wanting to spend more money. To produce solar energy, engineers and scientists are working to increase the efficiency of the cells and lower the cost of production.