Solar Thermal Market Size, Share, Growth Analysis, By Collector Type(Evacuated Tube Collector, Flat Plate Collector, Unglazed Water Collector, Air Collector), By System(Thermosiphon Solar Heating Systems, Pumped Solar Heating systems), By Application(Residential, Commercial, Industrial), By Region - Industry Forecast 2024-2031

Solar Thermal Market Driver

Growing Adoption of Green Energy Will Cater to Solar Thermal Market Growth

• Adoption of clean fuels and increasing environmental awareness which is aimed at reducing carbon footprints is driving the growth of the market. While reducing dependency on fossil fuels in combination with economic advantages for consumers as well as service providers are the factors driving the growth of the market. Further, government initiatives regarding increasing the usage of renewable sources in energy generation are likely to propel the growth of the market. The government is providing incentives based on the targets for the generation of electricity from conventional sources, and the installation of solar thermal plants in various countries like China, it is believed to show significant market growth in nearby future.
• Numerous goals have been set by governments and international organizations to be accomplished by the years 2030, 2040, and 2050. These goals place a strong emphasis on raising the proportion of renewable energy sources in energy production. This is likely to increase investments in the solar industry, along with the government incentives offered to accomplish the same. As a result, the market has become more fragmented and more open to new competitors. During the forecast period, it is projected that these factors will work together to grow the solar thermal market overall.
• For instance, renewable energy now accounts for 20% of the US electrical generation, up from 10% in 2010 in just 10 years. Solar and wind energy have witnessed robust growth, with rates of 84% and 15%, respectively, during the past ten years. Despite these remarkable developments, the pace will need to pick up considerably if the United States is to meet its clean energy targets. The nation has more than 100 gigawatts (GW) of solar power capacity and 122.5 GW of wind power capacity at the end of 2020, however, to decarbonize the power industry between 2035 and 2050, up to 70- 100 GW each of solar and wind will need to be added annually. This thus is likely to create a wide scope for the market growth in the upcoming years.

Solar Thermal Market Restraint

Higher installation Costs of Solar Systems

• High installation and maintenance costs of solar thermal power plants, utilization of large lands for the plant setup as well as instability, and low accessibility of finding land exposed to greater solar radiation are some of the factors that are limiting the growth of the global solar thermal market.
• For instance, A rooftop solar PV system costs approximately $2500 per kWp (kilowatt peak) including installation charges. The average household needs a solar panel to provide around 3kW. Solar panels cost ranges from $4000 to $6000 and will cover almost 21 square meters of roof. The more electricity a solar system can generate, it will increase the initial installation cost too. High installation cost is the limiting factor to the growth of the global market. Nevertheless, solar systems have a one-time installation cost, which is now decreasing due to government initiatives and support for a shift towards the adoption of renewable and green energy.