2024 Global Canada Solar Photovoltaic System Market Comparison

 

Introduction

The solar photovoltaic (PV) system market is experiencing significant growth worldwide, and Canada is no exception. With a focus on renewable energy solutions and reducing carbon footprints, the Canadian solar PV industry is poised for remarkable expansion in 2024 and beyond. Solar energy, as a clean, sustainable, and increasingly cost-effective power source, is gaining momentum in both residential and commercial sectors. This article provides an in-depth comparison of the global and Canadian solar photovoltaic systems market, examining key drivers, challenges, technological innovations, and future trends that will shape the market’s growth.

Global Solar Photovoltaic System Market Overview

The market size for solar photovoltaic systems in Canadak is estimated to be US$13.2 Bn by the end of 2031 from US$6.1 Bn recorded in 2024. The Canada solar photovoltaic system market is expected to register a CAGR of 11.7% during the forecast period of 2024 to 2031.

Several factors contribute to this growth:

• Government Policies and Regulations: Many countries worldwide are introducing supportive policies, incentives, and subsidies to promote the adoption of solar energy. These include tax rebates, feed-in tariffs, and net metering programs, which encourage both residential and commercial solar installations.
• Technological Advancements: Innovations in solar panel efficiency, energy storage, and inverter technology have made solar systems more affordable and accessible. For instance, the development of bifacial solar panels and perovskite solar cells is expected to further improve the efficiency and cost-effectiveness of solar PV systems.
• Environmental Awareness: Increasing concerns over climate change and the need to transition to sustainable energy sources have also driven solar adoption globally. Solar energy provides a viable alternative to fossil fuels, helping countries reduce their carbon emissions and reliance on non-renewable energy.
• Falling Costs: One of the primary drivers of the global solar PV market is the dramatic drop in solar system prices over the past decade. The cost of installing solar panels has fallen by more than 80% in the last ten years, making solar power increasingly affordable for a wide range of consumers.

Canada Solar Photovoltaic System Market Overview

Canada, with its vast land area and diverse geography, holds significant potential for solar energy generation. While the country has historically been slower to adopt solar energy compared to other regions like Europe and Asia, recent trends indicate a steady rise in solar PV installations, driven by government policies and advancements in technology.

As of 2023, Canada had installed approximately 5.5 gigawatts (GW) of solar capacity, and this number is expected to rise to 8-10 GW by 2024. The Canadian solar PV market is growing at a CAGR of approximately 10-15%, driven by a combination of federal and provincial incentives, decreasing installation costs, and growing environmental awareness among Canadian consumers.

Key factors driving the growth of solar PV systems in Canada include:

• Government Incentives and Policies: Both the federal government and various provinces have introduced programs aimed at supporting the adoption of solar PV systems. For example, Canada’s Net Metering Program allows homeowners and businesses to offset their energy consumption by generating solar power, while some provinces provide direct financial incentives for residential solar installations.
• Geographic Advantages: While Canada has a colder climate, its wide-open spaces and long daylight hours in the summer months make it an ideal location for solar energy generation. Several regions in Canada, particularly Alberta and Saskatchewan, have high levels of solar irradiance, which increases the effectiveness of solar panels.
• Energy Security and Clean Energy Goals: Canada is working toward reducing its dependence on fossil fuels and achieving its net-zero emissions by 2050 target. Solar energy plays a vital role in meeting these targets, as the country aims to decarbonize its energy grid and move toward cleaner, renewable sources.

Key Market Comparison: Global vs. Canada Solar PV Systems

1. Market Size and Growth
• Global Market: The global solar PV market is expansive, expected to reach a value of $800 billion by 2030. The global market's CAGR is projected at 20%, with major drivers including technological innovations, supportive government policies, and a worldwide shift toward renewable energy.
• Canada Market: Canada’s solar PV market is smaller in comparison, but its growth is steady, projected to reach 8-10 GW by 2024. With a CAGR of 10-15%, Canada’s growth rate is slower than the global average, but the market is still expanding due to provincial incentives and falling installation costs.
2. Technological Advancements
• Global Market: Global innovations in solar technology have been pivotal in enhancing the efficiency and affordability of solar systems. The development of advanced bifacial panels, perovskite cells, and integrated solar storage systems has revolutionized the market. These innovations are expected to continue in the coming years, with greater efficiency in solar conversion rates and energy storage.
• Canada Market: While Canada is adopting these global technological trends, the pace of adoption has been slower due to colder climates and the relatively smaller solar market. However, Canadian solar companies are increasingly incorporating advanced technologies into their installations, such as smart grid integration and solar battery storage systems to address issues like energy storage and system efficiency.
3. Government Policies and Regulations
• Global Market: Countries across Europe, the U.S., China, and India have implemented favorable government policies that promote the growth of solar energy. In Europe, feed-in tariffs and tax credits have encouraged homeowners and businesses to invest in solar systems, while China and India have become some of the largest producers and consumers of solar PV systems.
• Canada Market: Canada’s federal and provincial governments have introduced policies to promote solar PV adoption, such as Net Metering and energy incentives in provinces like Ontario, Alberta, and British Columbia. Canada is also making strides with its goal to achieve net-zero emissions by 2050, with solar energy being a critical part of the plan. However, unlike global leaders, Canada's policies are often regionally focused, and solar incentives vary across provinces.
4. Cost and Affordability
• Global Market: Global solar PV costs have dropped dramatically over the past decade, with the price per watt of solar panels falling by more than 80%. The affordability of solar systems has made it increasingly accessible to both residential and commercial consumers worldwide.
• Canada Market: Solar installation costs in Canada have also fallen significantly. The cost of solar PV systems in Canada is now comparable to other North American countries, making solar energy an increasingly affordable option for Canadians. With the addition of provincial incentives, Canadian homeowners and businesses are more inclined to adopt solar power.
5. Market Challenges
• Global Market: One of the major challenges facing the global solar PV market is the intermittency of solar energy. As solar power generation is dependent on weather conditions and sunlight availability, energy storage solutions like batteries and smart grids are necessary to ensure a reliable energy supply.
• Canada Market: For Canada, climate conditions remain a key challenge. While regions like Alberta and Saskatchewan have excellent solar potential, parts of the country with harsher winters may struggle with efficient solar energy production. However, advancements in solar technology, including better performance in cold weather, are helping to mitigate these issues.

Future Outlook

Both the global and Canadian solar PV markets are expected to continue expanding in the coming years. Globally, innovations in technology, the push for decarbonization, and supportive government policies will drive further growth. In Canada, the combination of provincial incentives, falling solar costs, and a greater commitment to renewable energy will likely lead to continued adoption and investment in solar power.

• Global Market: The global solar PV market will continue to innovate, with advancements in technology such as solar-powered vehicles, solar-powered cities, and floating solar farms gaining traction. Additionally, energy storage solutions will improve, addressing one of the most significant challenges of solar energy—intermittency.
• Canada Market: In Canada, increasing support from the government for renewable energy projects, along with rising consumer demand for sustainable energy, will help position solar as a key player in Canada’s energy mix. By 2030, it is anticipated that solar energy will account for a larger share of Canada's renewable energy generation.

Conclusion

The global and Canadian solar photovoltaic systems markets are experiencing significant growth, driven by technological advancements, supportive government policies, and a shift toward renewable energy. While Canada’s solar market is still smaller than global leaders like China and the U.S., it is on track for steady growth, supported by federal and provincial initiatives, cost reductions, and improved technologies. With the growing emphasis on clean energy and sustainability, solar PV will continue to play a central role in the future of energy generation worldwide.