Utility Solar PV EPC Market Size, Share, Trends | 2032

Report Description

Utility Solar PV EPC Market Outlook 2032

The global utility solar PV EPC market size was USD 59.89 Billion in 2023 and is projected to reach USD 141.21 Billion by 2032, expanding at a CAGR of 10% during 2024–2032. The market growth is attributed to the increasing demand for renewable energy sources, government initiatives promoting solar power adoption, advancements in solar technology leading to cost reductions, and growing focus on environmental sustainability and reducing carbon emissions.

The global utility solar photovoltaic (PV) engineering, procurement, and construction (EPC) market is witnessing a significant surge in the demand, driven by the increasing adoption of solar energy as a sustainable power source. The shift toward utility-scale solar PV projects is trending in the market, which are large-scale installations designed to generate electricity for utility companies. These projects are becoming increasingly popular due to their ability to contribute substantial amounts of clean energy to the grid.

The integration of energy storage solutions with solar PV systems is fueling the market. As energy storage technologies continue to advance and become cost-effective, they are being incorporated into solar PV projects to enable efficient energy management and grid stability. This trend is relevant in regions with high renewable energy penetration, where energy storage helps in balancing supply and demand. For instance,

• According to the International Renewable Energy Agency (IRENA), the industry is projected to grow six-fold in the next decade, reaching a cumulative global capacity of about 2,840 GW by 2030.

Growing emphasis on innovative financing models and project structures in the utility solar PV EPC market. Power purchase agreements (PPAs), green bonds, and community solar initiatives are gaining traction toward funding and executing utility-scale solar PV projects. These financing mechanisms attract investments and fosters collaboration between stakeholders, including developers, investors, and utilities, to accelerate the deployment of solar PV infrastructure.

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Impact of Artificial Intelligence (AI) in the Utility Solar PV EPC Market

Artificial Intelligence (AI) is revolutionizing the global utility solar photovoltaic (PV) engineering, procurement, and construction (EPC) market by enhancing efficiency, reducing costs, and optimizing performance across the entire project lifecycle. AI-powered tools and algorithms are increasingly being integrated into various aspects of utility-scale solar PV projects, from design and planning to operations and maintenance.

AI algorithms analyze vast amounts of data, including solar radiation patterns, geographic information, and energy demand profiles, to determine the most efficient configuration for solar PV installations. This optimization leads to high energy yields, improved system performance, and reduced capital expenditures, making solar PV projects attractive and cost-effective for developers and investors.

Utility Solar PV EPC Market Dynamics

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Major Drivers

Increasing government initiatives and favorable policies promoting renewable energy adoption are driving the market. Governments worldwide are setting ambitious renewable energy targets and providing incentives such as subsidies, tax credits, and feed-in tariffs to encourage the development of utility-scale solar PV projects. These initiatives create a conducive environment for solar PV EPC companies, attracting investments and fostering market expansion. For instance,

• The Department of Energy (DoE) has advanced its utility-scale solar cost target, aiming to reduce current costs from 4.6 cents/kWh to 3 cents/kWh by 2025 and 2 cents/kWh by 2030. This shift, coupled with decreasing panel costs and rapid technology adoption, fuels the business prospects of PV EPC contractors.

Rising demand for clean and sustainable energy sources is propelling the market. The preference for solar energy is growing, as a clean alternative to fossil fuels with increasing awareness of climate change and environmental concerns. Utility-scale solar PV projects offer a scalable and reliable solution to meet the energy needs of industries, communities, and utilities while reducing carbon emissions and mitigating climate change impacts. This growing demand for clean energy sources is expected to propel the growth of the market in the coming years.

Advancements in solar PV technology and innovations in EPC processes are fueling the global market. Technological advancements, such as improvements in solar panel efficiency, energy storage solutions, and digitalization of project management, are enhancing the overall performance and reliability of solar PV installations. These advancements reduce project costs, increase energy production, and improve project execution timelines, making solar PV projects attractive and competitive in the energy market. The continuous innovation in solar PV technology and EPC practices is anticipated to drive the market and the adoption of utility solar PV EPC solutions globally. For instance,

• On November 3, 2020, Trina Solar unveiled the 405W+ Vertex S Module Series with a 15GW capacity. This advanced series targets residential and commercial applications, offering exceptional performance, and versatility with its compact design and Vertex technology, catering to distributed photovoltaic power plants.

Existing Restraints

High initial investment required for utility-scale solar PV projects is hampering the market. While solar PV technology costs have decreased over the years, the upfront costs for developing large-scale solar installations remain substantial. This deters investors and project developers from pursuing utility solar PV projects in regions where financial incentives or supportive policies are limited.

Regulatory and policy uncertainties pose a potential restraint to the utility solar PV EPC market. Changes in government policies, regulations, or incentives related to renewable energy impact project economics and investor confidence. Uncertainties surrounding tariff structures, net metering policies, and grid connection procedures create barriers to project development and financing, hindering the market and investments in utility solar PV projects.

Land availability and land-use conflicts restrain the expansion of utility-scale solar PV projects. Developing large solar installations requires significant land resources, and securing suitable land is challenging in densely populated or environmentally sensitive areas. Land-use conflicts, such as competition with agricultural or conservation land, zoning restrictions, and community opposition, hamper project development and delay project timelines, impeding the market in certain regions.

Emerging Opportunities

­Increasing focus on renewable energy targets and sustainability goals worldwide is expected to create lucrative opportunities for the market. Governments and organizations are increasingly investing in solar PV projects as part of their efforts to reduce carbon emissions and transition to clean energy sources. This growing commitment to renewable energy presents a significant opportunity in the utility solar PV EPC market, with countries implementing supportive policies, incentives, and regulatory frameworks to accelerate solar deployment.

Rising demand for energy and the need to diversify energy sources are driving investments in utility-scale solar PV projects. As economies continue to grow, especially in emerging markets, the electricity demand is rising, leading to a high demand for renewable energy solutions such as solar PV. This trend is creating favorable conditions for the expansion of the market, with opportunities for project developers, EPC contractors, and equipment suppliers to capitalize on the growing demand for solar energy infrastructure.

Advancements in solar PV technology, such as improvements in efficiency, cost reductions, and innovations in energy storage solutions, are driving the competitiveness of utility-scale solar PV projects. Decreasing costs of solar panels, inverters, and balance-of-system components, and enhanced performance and reliability, are making solar PV economically viable and attractive for utility-scale applications. These technological advancements present opportunities for the global market to expand its footprint and driving the renewable energy sector.

Scope of the Utility Solar PV EPC Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics are included in the report.

Utility Solar PV EPC Market Segment Insights

Type Of Installation Segment Analysis

Based on type of installation, the utility solar PV EPC market is divided into ground-mounted PV systems and rooftop PV systems. The ground-mounted PV systems segment held a major share of the market in 2023, owing to its high capacity, ease of installation in open spaces, and cost-effectiveness for utility-scale projects. Ground-mounted systems are preferred for large-scale solar farms due to their ability to accommodate a high number of solar panels and maximize energy generation.

The rooftop PV systems segment is expected to expand at a significant pace in the coming years, due to increasing adoption in residential, commercial, and industrial sectors. Factors such as growing awareness about renewable energy, government incentives for rooftop solar installations, and advancements in rooftop solar technology are driving the demand for rooftop PV systems.

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Project Size Segment Analysis

On the basis of project size, the global market is segregated into small-scale PV projects, medium-scale PV projects, and large-scale PV projects. The large-scale PV projects segment held the largest market share in 2023, attributed to the increasing demand for utility-scale solar power plants, government initiatives promoting large-scale solar installations, and the declining cost of solar PV technology. Large-scale projects benefit from economies of scale, enabling cost-effective energy production and grid integration.

The small-scale PV projects segment is anticipated to expand at a substantial CAGR during the projected period, due to the rising adoption of residential and commercial rooftop solar systems. Small-scale projects offer benefits such as reduced electricity bills, energy independence, and lower carbon emissions, contributing to their popularity among homeowners, businesses, and institutions. For instance,

• In 2021, STEAG Solar Energy Solutions secured an EPC contract for a Sicily solar project, boasting nearly 700 MW of installed capacity and an annual output of over 1,400 GWh.

Technology Segment Analysis

Based on technology, the utility solar PV EPC market is segmented into monocrystalline solar panels, polycrystalline solar panels, and thin-film solar panels. The monocrystalline solar panels segment led the market, in terms of revenue in 2023, owing to their higher efficiency, better performance in low-light conditions, and longer lifespan as compared to other panel types. These factors have increased the adoption of monocrystalline panels in utility-scale solar projects.

The thin-film solar panels segment is projected to register a robust growth during the assessment years, due to advancements in thin-film technology, resulting in improved efficiency and cost-effectiveness. Thin-film panels are lightweight, flexible, and suitable for various applications, including building-integrated photovoltaics (BIPV) and portable solar solutions. Additionally, the low production costs and potential for high energy yields in certain environments make thin-film panels an attractive option for utility-scale solar projects.

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Application Segment Analysis

On the basis of application, the market is divided into residential, commercial, industrial, and utility-scale. The utility-scale segment generated a major revenue share of the market in 2023, attributed to the increasing adoption of large-scale solar PV projects by governments and energy companies globally. The demand for clean and sustainable energy sources, and favorable government policies and incentives, have driven significant investments in utility-scale solar PV installations.

The commercial segment is expected to lead the market, in terms of revenue, during the projection period, due to the rising deployment of solar PV systems in commercial buildings, offices, and shopping complexes. Additionally, initiatives promoting rooftop solar installations and net metering policies are encouraging commercial entities to invest in solar energy solutions, further propelling the segment.

End-user Segment Analysis

In terms of end-user, the utility solar PV market is segmented into the residential sector, commercial sector, industrial sector, and utilities & power generation companies. The utilities & power generation companies segment led the market in terms of revenue in 2023, owing to the increasing demand for clean and renewable energy sources by utilities and power generation companies. Government initiatives promoting renewable energy adoption, and favorable policies and incentives, have encouraged these entities to invest in utility-scale solar PV projects, driving the market in this segment. For instance,

• In June 2020, Trina Solar introduced the TrinaPro Mega, a high-power smart PV solution with over 500 W power output, enhancing system performance and lowering the Levelized Cost of Energy (LCOE) for optimized downstream systems.

The commercial sector is projected to register a robust growth during the assessment years, due to the rising adoption of solar PV systems by businesses, offices, and commercial establishments. Additionally, initiatives promoting rooftop solar installations and net metering policies are encouraging commercial entities to invest in solar energy solutions, further propelling the segment.

Regional Outlook

In terms of region, the global utility solar PV EPC market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific held a major market share in 2023, due to its robust solar energy deployment, supportive government policies, and investments in renewable energy infrastructure. The large population, increasing electricity demand, and favorable regulatory environment have propelled the utility-scale solar PV projects market in the region. For instance,

• On January 11, 2024, First Solar inaugurated its 3.3 GW manufacturing facility in India, marking the country's first fully vertically integrated solar plant. The facility, with an annual capacity of 3.3 GW and over 1,000 employees, produces Series 7 photovoltaic (PV) modules optimized for the market in India, representing an investment of approximately USD 700 Million.

The market in North America is projected to grow at a significant pace during the forecast period, owing to the increasing adoption of solar energy, advancements in solar technology, and government incentives promoting renewable energy. Additionally, the focus on reducing carbon emissions and transitioning toward clean energy sources is driving investments in utility-scale solar PV projects, creating opportunities for market players and contributing to the market in the region.

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