Solar PV Mounting Systems Market to be Substantially Driven by Declining PV Price Trends, Global Share to Exceed USD 9 billion by 2024

February 02, 2018

In less than a decade, solar PV sector has transited from a mere cottage industry to a multi-billion business space. Solar PV mounting systems market, rightly being considered as one of the inherent extensions of the aforementioned domain, has been gaining exceptional momentum by the similar trends. Governmental subsidies, continual innovations by tech benefactors, and significant capacity additions from existing as well as new entrants are some of the major rationales notably influencing the commercialization matrix of solar PV mounting systems industry.

Economic fundamentals of solar PV mounting systems market

The economical aspect of solar power industry is improving day by day. It is way more cost-competitive today than how it was perceived even a few years back, the fundamental factor behind the escalating growth of solar PV mounting systems market. Reportedly, the cost associated with the installation of rooftop solar photovoltaic systems for American residential consumers has fallen from USD 7 per watt/week to almost USD 4 per watt/week or less over 2008-2013. A major chunk of this decline in cost, as per experts’ opinion, lurk in the steep reductions of cost associated with installations and service. Since mounting systems majorly deal with retrofitting the solar panels, it is an obvious fact that solar PV mounting systems industry is also influenced by this changing economics.

With increased consumption and massive business investments in solar power, solar PV mounting systems market across the globe, of late, has become an opportunistic business space to be reckoned with. As per estimates, Solar PV capacity installed in the year 2016, rose to over 76 GW, an increment of almost 25 GW from what it recorded in the year before the referred. The United States and China, for the records, installed solar power capacity of almost 7.5 GW and 15 GW respectively in 2015, which allegedly was a record figure for the year. In fact, as statistics claim, a mammoth investment of USD 161 billion was made in solar power in the year 2015. India plans to install solar PV of 100 GW capacity by 2022. Taking into reference these statistics related to solar PV installation, it is undeniable that solar PV mounting systems industry is circumventing around a profitable growth path over the recent years.

Europe to stand as a major growth ground for solar PV mounting systems market

Europe has been one of the pioneers in renewable energy cosmos, with a strong pipeline of solar projects that are already underway. Augmented by the potential contribution of Germany, the region stands to gain tremendous profits in solar PV mounting systems market. According to data received from SolarPower Europe – the continent added solar power of 6.7 GW capacity in the year before last, depicting a 21% decrease in the demand from what it was in 2015. The announcement that grabbed the headline in last year’s SolarPower Summit, also reported that tech investors proactive appearance in European solar market is stimulating the business dynamics, amidst the backdrop where countries like France and Germany are ramping up their solar ambitions.

Unveiling the recent developments in the regional solar PV mounting systems market:

  • SolarPower Europe has recently launched its revised version of O&M (Operation & Maintenance) guidelines for the proper optimization of Europe’s solar power plants. Resulted from the cumulative efforts of 70 experts that include asset managers, monitoring tool providers, O&M contractors, and asset owners, these definitive guidelines are claimed to support solar power growth across the belt, which by extension would reflect in the regional solar PV mounting systems market size as well.  
  • Shell, the British-Dutch oil and gas conglomerate has recently made it to the headlines with the announcement of its PPA (Power Purchase Agreement) in England. Reportedly, the deal, in all plausibility, would make the Netherland headquartered company to be the single off-taker from the 69.8 MW Bradenstoke solar plant in the nation. With such extensive investments made in the regional solar market by globally acclaimed energy giants, Europe solar PV mounting systems industry is sure to proliferate.

If experts are to be believed, as more number of electric utilities penetrate the solar PV mounting systems market, competition intensifies and the scope for profit shrinks. Since the industry is relatively young, installation costs tend to vary widely, with some of the firms experiencing severe downturns. Against the fiercely competitive backdrop, analysts suggest, to maintain an attractive profit margin, players need to scale down the cost of installations and services faster than most of the industry average, which ultimately would allow them to stronghold their market position. Macro factors such as low oil and gas price trends have played a pivotal role in determining the sustainability quotient of solar PV mounting systems industry. In spite of these challenges, opportunity and growth scope of solar PV mounting systems market is forecast to be positively high, as globally prevalent alarming environmental call with regards to greenhouse gas emissions and carbon footprints would prompt most of the power utility sectors for photovoltaics installation.