Market Trends of Europe Solar Photovoltaic (PV) Industry
Rooftop Segment Anticipated to Witness Significant Market Growth
- The rooftop segment is estimated to witness significant growth during the forecast period in Europe. The European region's rooftop installation has lots of potential as most of Europe's roof surfaces are unused. Several countries in Europe are working on modifying their policies to assess remuneration levels.
- Moreover, Norway, the Baltic region, Ireland, and others have geographical conditions favorable to rooftop PV installation. This is expected to increase rooftop solar PV installation in Europe during the forecast period. Also, in several countries, homeowners are willing to install rooftop PV modules to reduce their electricity bills. According to International Renewable Energy Agency (IRENA), in 2022, Europe's solar PV installed reached 225.27 GW, with a growth rate of 18.24% over the previous year.
- In December 2023, the European Parliament and the European Council reached an interim agreement on the strengthened Energy Performance of Buildings Directive (EPBD), aspiring to stimulate the energy performance of buildings and requiring new buildings to be solar-ready. Additionally, the EPBD mandates that EU member states have to ensure new buildings are fit to host rooftop solar PV or solar thermal installations. Existing public and non-residential building solar will require to be installed commencing from 2027.
- Governments in several countries have adopted supportive policies to increase the deployment of rooftop PV arrays within the region. For instance, in March 2023, The European government adopted the revised Energy Performance of Business Directive mandating the use of rooftop solar systems for all new buildings by 2028 and renovated residential buildings by 2032.
- According to latest data from German PV association BSW-Solarof 2022, Germany achieved a significant milestone, with more than 3 million PV systems now in operation. the country’s rooftop PV market is experiencing robust demand and the 4 million mark could be surpassed as early as 2023,
- Therefore, from the above points, rooftop solar photovoltaic segment is anticipated to witness significant growth of the Europe solar photovoltaic market during the forecast period.
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Germany Expected to Dominate the Market
- Germany is one of the most lucrative markets in the European region for renewable energy production, including solar. The country has experienced significant developments in solar PV installation due to the target of reducing carbon emissions. The country is likely to continue witnessing growth in solar installation.
- According to International Renewable Energy data 2022, the country's installed solar PV capacity in 2022 was 66.66 GW, registered a growth of 12.2% as compared to previous year.
- The country has implemented several regulations and incentive schemes to promote the installation of solar modules in cities. In June 2023, Germany’s economy ministry announced there will be new government funding to rebuild the country’s solar industry. The economy ministry is expected to present the new funding instrument soon, is also preparing a tender in line with a new EU subsidy framework in the near future.
- Furthermore, the mandates for solar photovoltaic installation on new buildings in a few German cities have helped in the expansion of the market in Germany. In December 2022, The EU has approved a Euro 28 billion German renewable energy scheme. The policy is aimed at rapidly expanding use of renewables inlcuding solar power. It is designed to deliver Germany's target to produce 80 per cent of its electricity from renewable sources by 2030.
- Therefore, from the above points, solar photovoltaic in Germany to dominate the Europe solar photovoltaic market during the forecast period.
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