Summary
The solar panel market has displayed robust growth, with the global market valued at 25 billion euros in 2022 and projected to expand at a CAGR of 13.78% to reach 47.67 billion euros by 2027. Global installed solar photovoltaic capacity was 728 GW in 2020, with the goal to hit 1645 GW by 2027. Despite the pandemic-induced market slowdown in 2020-2021, the sector continued to attract investment, evidenced by the $240 billion invested in 2022.
In France, the electricity mix in 2023 remained predominantly nuclear (57%), with solar power at 4% (2,681 MW). However, French installed photovoltaic capacity showed a significant increase, from 878 MW to an explosive growth reaching 13,067 MW in 2021. Demand is particularly high in regions with favorable climatic conditions such as Occitanie and Provence Alpes Côte d'Azur. The feed-in tariffs had declined from 46 c€/kWh, but saw an increase in 2023 due to the energy crisis. Lastly, France's foreign trade in the broader semiconductor photosensitive devices market, including solar panels, increased by 14.7% in exports for 2021 to 668.7 million euros, with Singapore being the main export destination.
Growth and Prospects of the Solar Panel Market in France
The solar panel market in France has exhibited a robust upward trajectory, with remarkable investments flowing into photovoltaic installations. The country’s capacity for solar panel production officially surpassed the 10 GW mark at the beginning of 2020, indicating a significant shift towards renewable energy. This shift is driven by the broader context of sustainable development, situating solar power at the forefront as a key renewable resource for the future. Market analysts project that the installed capacity could hit the ambitious height of between 35 and 45 GW by 2028, aligning with the national objectives. The French government has been supporting the sector through feed-in tariffs and tax incentives, with tariffs for 2023 ranging from 14.30 c€/kWh to 23.49 c€/kWh for different installation types and sizes.
While French and European start-ups are breaking ground with innovations in hybrid and digital technologies, the French market remains considerably reliant on Chinese suppliers, which intensifies the competitive landscape. Despite a temporary deceleration caused by the health crisis of 2020-2021, the market's resilience and a reinforced interest in sustainable energy prevail, suggesting a dynamic recovery and sustained growth. Demand in this sector is diverse, ranging from small domestic setups requiring less than 9 kW capacity to expansive industrial solar plants exceeding 250 kW, manifesting France's commitment to making buildings energy-neutral and integrating renewable energy solutions in residential and commercial spaces.
Moreover, the industry's structure is upheld by an expanding workforce, peaking at nearly 20,000 employees within the photovoltaic sector, pointing towards an increasingly robust and specialized job market. Large-scale installations remain dominant, although there's a notable shift towards smaller-scale domestic systems—a trend supported by state policies aimed at quadrupling yearly new installations by 2028. Manufacturing in France is complemented by various types of solar panel producers, from specialized manufacturers to major international electronics companies and European suppliers. Distribution channels encompass direct sales, wholesalers, installers, and even DIY superstores, which indicates a multifaceted approach to reaching end-users.
At the global level, China continues to exude dominance in photovoltaic production, further solidified by the European Union’s decision to cease imposing import taxes on Chinese panels. This development could potentially saturate the European market with economically priced imports. Technologies in the photovoltaic sector vary widely, ranging from well-established crystalline silicon panels to emerging third-generation organic cells and innovative concentrator cells. Solar thermal energy also employs varied technologies such as active and passive solar technology.
Key Solar Panel Market Players Making an Impact
The ever-evolving solar panel market showcases a variety of dynamic players, each with its own strengths and strategic approaches. Among these, several companies are mentioned in the previous text that reflect the breadth of the industry and the varied nature of the offerings.
- Sunpower emerges as a pioneer in the market, deemed to be on the cutting edge of solar panel technologies. The company's specialization in the field has set a benchmark for quality and innovation, gaining substantial traction among consumers looking for high-performance solutions.
- JA Solar, a major player hailing from China, established in 2005, has significantly contributed to the industry with its robust manufacturing capabilities. The company's growth aligns with the overall surge in Chinese influence within the global solar panel sector, underscored by considerable production volumes.
- LG, known worldwide for its electronics, also has a foot in the door of the solar industry. The company's involvement signals the multidimensional capabilities of international electronics giants in stepping into renewable energy markets.
- The European landscape features key manufacturers like QCells, a German entity widely acknowledged for its substantial presence in both Germany and France.
- European manufacturers such as Systovi and Photowatt play crucial roles in regional market dynamics, demonstrating Europe's commitment to growing its renewable energy portfolio.
- French innovation shines through with the advent of Dual Sun's Spring hybrid solar panel, which creatively addresses both electricity and heat generation, paving the way for multi-functional energy solutions. Offering both photovoltaic and thermal capabilities, Dual Sun represents the spirit of evolution in the industry.
- Start-ups like BeOn Energy and SAUREA also suggest the sector's openness to disruptive ideas and novel approaches.
- BeOn Energy endeavors to democratize solar panel installation with its plug-in solar kit, while SAUREA's motor powered solely by solar energy showcases the potential for standalone renewable solutions.
- In the digital arena, names like the Spanish FlexiDao, with its blockchain-based platform, and French Imeon Energy, integrating artificial intelligence in solar inverters, illustrate the ongoing digital transformation and the synergy between digital innovation and photovoltaic technology.
- Lastly, the omnipresence of Chinese manufacturers cannot be overstated, with notables such as JinkoSolar, Trina Solar, and Canadian Solar leading the charge in production. These companies dominate the market and speak volumes about China's stronghold in the solar panel industry.
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Summary and extracts
1 Market overview
1.1 Definition and scope of study
Solar panels are designed to recover energy from the sun's rays and transform it into either electricity or heat. There are two types of solar panel: photovoltaic panels, which generate electricity, and thermal panels, which produce heat.
The solar panel market is booming. Although still a minority energy source, solar power has been growing steadily in France since 2010: installed capacity officially exceeded 10 GW at the start of 2020, and should reach 40 GW by 2028 according to national targets. With sustainable development at the heart of today's concerns, solar power is one of the renewable energies of the future. As such, investment in new photovoltaic installations is substantial.
The sector is greatly boosted by the special role played by the French government, which intervenes in this market through subsidies, tax breaks and buy-back obligations for the photovoltaic electricity produced. Despite the arrival of new French and European start-ups, whose offerings reflect the trend towards hybrid and digital technologies, the French sector (and the European sector in general) is still in a state of flux.despite the entry of new French and European start-ups, whose offerings reflect trends in hybrid and digital technologies, the French (and more broadly the European) solar panel sector is heavily dependent on Chinese supply, where competition has intensified in recent years.
Finally, the effects of the current health crisis will be of interest in the long term. While the crisis has led to a slowdown in the market in 2020-2021, it has also helped to reinforce French interest in sustainable development and alternative energies.velopment and alternative energies, and demonstrated the resilience of solar installations in the face of collapsing electricity prices.
List of charts
- World solar panel market
- New investments in solar energy
- Net installed renewable energy capacity
- Installed photovoltaic capacity in Europe
- Primary production of renewable energies by sector
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