Solar EPC Market Trends

Growth Drivers

• Growing Awareness of Climate Change- Climate change is one of the most pressing issues facing our planet today. With rising temperatures, melting ice caps, and more frequent natural disasters, people are becoming increasingly aware of the need to transition to clean, renewable energy sources like solar power. According to a recent report by the International Energy Agency, solar power is now the cheapest source of electricity in history. As a result, we are seeing a surge in demand for solar energy across the globe. In fact, the report predicts that solar will be the largest source of electricity generation by 2050.
• Decreasing Costs and Increasing Efficiency- Over the past decade, the cost of solar technology has decreased significantly, making it more accessible to consumers and businesses alike. According to the International Renewable Energy Agency, the cost of solar photovoltaic modules has decreased by 90% since 2009. This decrease in cost has made solar energy a viable option for many who previously couldn't afford it.
  In addition to decreasing costs, solar technology such as smart solar has also become more efficient. Solar panels are now able to convert a higher percentage of sunlight into usable energy, meaning that fewer panels are needed to generate the same amount of energy. This increase in efficiency has further contributed to the growing demand for solar energy.
• Rising Importance of Corporate Social Responsibility- Corporate social responsibility (CSR) has become an increasingly important factor in driving the demand for solar energy. Companies that are committed to sustainability and reducing their carbon footprint are turning to solar as a way to meet their energy needs while also demonstrating their commitment to the environment. For instance, Walmart, a retail giant has set a goal of powering 50% of its operations with renewable energy by 2025, and it has already installed more than 260 solar projects on stores, clubs, and distribution centers across the United States.

Challenges

• Complexity of Grid Connection and Integration: Integrating solar power into the electrical grid requires careful planning to ensure stability and reliability. Grid connection challenges, such as grid capacity limitations and technical compatibility issues, can impact project feasibility.
• Supply chain disruptions, including shortages and delays in component availability, can affect solar project timelines and costs.
• Shortage of Skilled Workforce