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Overview
The solar PV operations and maintenance market size is forecast to
reach USD 10.9 billion by 2030, after growing at a CAGR of 14.8% during 2024-2030.
Solar PV operation & maintenance (O&M) is one of the most
interpretative ways to ensure that the solar power system gives the best
feasible generation. Conducting regular O&M ensures optimal performance of
photovoltaic (PV) systems while keeping down the risks of soiling,
micro-cracking, internal corrosion, and other problems. The solar PV operation
and maintenance market so far has seen exceptional growth, with numerous mileposts
having been fulfilled in terms of the number of installations, cost depletion,
and technological development. It is significant to note that reducing carbon
dioxide emissions is currently the focal point of global efforts toward
shifting to cleaner forms of energy. This aspect, coupled with mounting
concerns concerning climate change as well as the impact of air pollution on
health has supplemented the demand for solar photovoltaics across the world.
Report Coverage
The report “Solar PV
Operations and Maintenance Market– Forecast (2024-2030)”, by IndustryARC, covers
an in-depth analysis of the following segments of the solar PV operations and
maintenance market.
By Service: Operations and Administration,
Corrective Maintenance, Vegetation Maintenance, Rack Maintenance, Scheduled
Maintenance, Module Washing, Inverter Replacement, Others
By Application: Residential, Commercial, and Industrial
By Geography: North America, South
America, Europe, APAC, Row
Key Takeaways
· In recent years, the
capacity of polysilicon, ingots, wafers, PV cells, and modules has increased
faster than the expansion of the installed capacity in 2022. This factor had a
large impact on both the supply and demand for PV worldwide. Due to a shortage
of resources, particularly glass and polysilicon, the price of PV modules as
well as their raw materials is expected to rise during the forecast period.
· Feed-in Tariffs and
Supportive schemes are expected for boosting the growth of the solar PV
operations and maintenance market further. For instance, After the Vietnamese
government issued feed-in tariffs for grid-connected solar photovoltaic
systems, the installed capacity of solar photovoltaic applications exploded in
2019 with the market continuing with significant growth in 2023. Direct
subsidies, tax credits, and imposing carbon taxes are other popular supportive
schemes for solar PV systems.
· In 2023, China had the
largest market share in the world's market for solar PV operations and
maintenance. Over the past ten years, China has steadily surpassed Europe,
Japan, and the United States in terms of global solar PV manufacturing
capacity. According
to the Climate Action Tracker Organization, China has announced plans to
"control" its coal consumption between 2021 and 2025 and to begin to
reduce it in 2026. As a result, solar capacity production has increased,
propelling the market for Solar PV O&M.
By Service - Segment Analysis
Scheduled maintenance dominated the solar PV operations and
maintenance market in 2023. Preventive maintenance schedules and frequencies
are determined by the operations function and depend on several variables,
including the kind of equipment, site environmental conditions (such as water,
snow, pollen, humidity, dust, and wildlife), and warranty conditions. By the
manufacturers' recommendations and as mandated by the equipment warranties,
scheduled maintenance is frequently performed at regular intervals. For the
next 25 years, solar panels are a great investment that will give access to
low-cost, renewable solar energy. Due to the rising solar panels construction,
the demand for scheduled maintenance is propelling market growth.
By Application - Segment Analysis
The industrial segment dominated the solar PV operations and
maintenance market in 2023. Consumer goods, fashion, and high-tech industries
all use a lot of energy, and stakeholders are becoming more and more conscious
of the potential savings that solar power operations can provide. They are also
taking note of the intangible advantages of living up to consumer expectations
about environmental awareness.
Building-integrated photovoltaics (BIPV) projects, which install
solar panels in underutilized commercial window space, are a growingly popular
option that allows builders to maximize energy efficiency. The capacity of BIPV
to successfully mix appealing design and effective energy generation is
demonstrated by a daycare center built by the German architectural firm Opus
Architekten in Marburg. The manufacturers of solar technology have already come
under fire for producing 'eyesore' designs for solar arrays. In response to
this criticism, BIPV was created. It also happens to be among the solar
industry's segments with the fastest current growth rates.
By Geography - Segment Analysis
Asia-Pacific solar PV operations and maintenance market dominated
the geography segment in 2023. According to the Climate Action Tracker
Organization, China has announced plans to control its coal usage between 2021
and 2025 and to start reducing it in 2026. As per recent research by the National
Key Research and Development Program China, solar PV operations and maintenance
work jobs have increased by a ratio of 14% in 2022. Owing to this, solar
capacity production is increased, which is propelling the market of solar PV
O&M market. In recent years, the Japanese government also announced Japan’s
goals of realizing carbon neutrality by 2050 and reducing greenhouse gas
emissions by at least 46% from the FY 2013 level by 2030. This objective of
carbon neutrality by 2050 is paving the way for solar PV operations and maintenance.
Japan is a unique market that presents a significant commercial
opportunity for businesses that provide services for operating solar
facilities. Numerous companies are looking for the biggest O&M service
providers operating in Japan in terms of third-party services, which strictly
refers to businesses that do not own the assets they provide services for. The
National Solar Mission is a major initiative of the Government of India with
active participation from states to promote ecologically sustainable growth
while addressing India’s solar energy security challenges. Operations and
maintenance for solar PV systems are gaining more and more attention in
Asia-Pacific with their large installed capacity.
Drivers – Solar PV Operations and Maintenance Market
· Residential applications for solar photovoltaic systems are becoming
more prevalent
One of the primary factors driving the growth in the
global solar PV operations and maintenance market is an increase in the adoption
of solar photovoltaic systems in residential applications as well as commercial
industrial applications. The proportion of global solar photovoltaic power
facilities for residentials showed rapid growth, rising 16% from 2017 and
recording 22% in 2022. In particular, Australia displayed that the majority of
the solar photovoltaic power facilities were for residential (51.3%) based on
its geographical advantages such as high-quality natural sunlight and large
land, which makes the country a promising market. The U.S. government
introduced The Solar Investment Tax Credit (ITC) to provide federal tax credits
for installing solar energy facilities. As a result, the demand for residential
solar photovoltaic systems in the United States has recently increased rapidly
due to tax benefits for installing home photovoltaic systems.
· Emerging O&M
innovations and technological advancements
A major element of a solar plant is an
operation and management system, which guarantees that the PV system will be
able to sustain high levels of technical and financial performance. Hence,
technological advancements are becoming more important when it comes to growth
in the solar photovoltaic operation and management (O&M) market. For instance, some intelligent systems were
introduced as a tool for inspection and monitoring. With the help of sensing
elements, solar photovoltaic operation and management can take advantage of
drones. They efficiently capture the necessary data and send them to the cloud
for analysis in less time and in a more accurate form.
In addition, cellular technologies such as
NB-IoT/5G can offer many advantages for the application of IoT to existing and
new PV monitoring systems. Predicting solar PV production is essential since electricity
generation from PV plants is highly dependent on the variable nature of the
sun’s radiation. Currently, algorithms that can match weather forecasts with PV
plant characteristics are being used to predict energy production on an hourly
basis for at least the next 48 hours.
Challenges – Solar PV Operations and Maintenance Market
· High cost of solar photovoltaic plant operating and maintenance
The expenses
associated with operating and maintaining a power plant and keeping the
machinery in good working order are both fixed and variable in nature. Not only
the cost of day-to-day repairs and preventative maintenance, but O&M
expenses also cover site and asset management, meeting health and safety
requirements, and labor costs.
Recently, more
companies and countries have decided to allocate a large number of funds for
research and development in the industry to encourage innovations to improve
the process since the Solar Photovoltaic O&M as well as the conversion of
electricity and are a high-technology process demanding a high level of skills
and expertise. The United States is expected to spend the most on O&M of
any single country at $3.5 billion by 2030. Additionally, it is anticipated
that the quick rise in equipment installation will drive up operation and
maintenance (O&M) expenses.
Market Landscape
Technology launches, acquisitions, and R&D activities are key
strategies adopted by players in the solar PV operations and maintenance market.
In 2023, the solar PV operations and maintenance market share have been consolidated
by the major players accounting for 52.60% of the share. Major players in the solar
PV operations and maintenance market are Belectric Solar & Battery GmbH,
BayWa r.e., Acciona, Électricité de France, Juwi O&M GmbH, Abengoa, Tata
Power Solar, Enerparc AG, Neoen, Scatec, and others.
Developments:
Ø In September 2022, Belectric has commissioned three projects in
Germany, the three projects have an installed capacity of 13.5 Megawatts and
consist of more than 22,650 solar modules.
Ø In May 2022, The Jakson Group has received two complete operation
and maintenance contracts from NTPC for its 5-MWp and 250-MWp solar
photovoltaic plants in the Andaman & Nicobar Islands and Ananthapuram,
Andhra Pradesh, respectively.
Ø In December 2021, Tata power solar received a $127 million order to
develop the 100MW EPC solar project along with a 120MWh utility-scale battery
energy storage system for Solar Energy Corporation of India Ltd. The contract
comprises operations and maintenance services in addition to engineering, design,
supply, construction, erection, testing, and commissioning of the solar
projects.