In many regions, the solar energy became the most affordable renewable resource which is used in different business spheres. The report of the Solar Power Europe association covers the development possibilities as well as problems of the industry, including key trends which will transform the solar energy market.

Antidumping measures and protectionism

Together with the active development of the global solar energy market, the era of commercial disputes started. EU, USA, India and China governments have anti-dumping and compensational measures in place which prevent local producers from enduring losses. For example, since 2012, Europe puts special import fees on solar panels and batteries imported from China. It causes the increase of products’ price and installation process which is disadvantageous for the market players. In 2017 European Commission announced that it will decrease the validity of existing fees from 24 to 18 months and will start the development of alternative mechanisms of protection of local manufacturers.   


Taking into the account the global expansion of the solar energy market, the disputes between countries will become an ordinary thing. For example, Turkey has recently published a list of Chinese solar panels producers which will be subject to anti-dumping fees. In the USA the bankrupted producer of solar batteries and modules filed a lawsuit. In case he wins, even more tough trade barriers will be imposed on the import of foreign solar power related products.


New political views prevailing in the USA popularize the protection of national producers which runs in odds with the founding principle of open international trade and can bring substantial losses to the global solar energy market, which is currently worth around $114 billion and employs 2,8 millions of workers.  


Structural transformation of the solar energy market


In many countries around the world, the transition towards decentralized management of the energy system is observed. The development of the apportioned generation of electricity will allow to better manage resources from alternative energy sources, while the liberalization of the market will allow to attract more players and add flexibility to the rules of the game.  


EU energy market is characterized by the excess of production capacities as well as increasing share of RES (renewable energy sources) which results in the decrease of bulk prices. Currently, this market undergoes transformation by opening the access of the solar energy to energy preservation and ancillary services sectors, as well as by facilitating access to the local markets.

In the USA they are focused on the creation of a flexible energy network, especially in California, where the increase in demand catches up with the modernization of ways of renewable energy supply. At the same time, the system of demand management aimed at decreasing the electric energy consumption is introduced in South Korea. It will allow to decrease the burden on energy systems as well as omit critical disruptions of supply which happened before.


There are three main issues which should be resolved in order to build an optimal structure of the energy market from the RES point of view.


  • The threat of stimulation mechanisms: a gradual cancellation of the support of energy sources which are the reason for excessive power and ineffective pricing is required. While applying mechanisms of rewarding of producers for uninterrupted supply of electricity, we also have to consider the CO2 emission. It will allow to omit situation when public funds are spent on the support of power stations emitting the largest volumes of CO2.

  • Encouragement of new players to enter the market: the access to the market should be open for the maximum number of potential producers.

  • The impact of external factors on the price of electricity. The electricity produced from RES can be competitive in terms of price with the energy produced at thermal power plants as its price comprises servicing of production facilities and other expenses. The development of the ecological certificates system, as well as gradual decrease of usage of coal (as it was done in Great Britain) or nuclear energy (as is the case in Germany), can improve the situation.   

It’s obvious that the transformation of the RES market depends on the political will of governments’ heads.

Active consumers will set the rules on the energy market

Except for the income generated from sales of the “green” energy, consumers – both households and businesses – try to decrease the expenses through the optimization of electricity usage. In EU countries, there are models which enable joint usage of solar energy by residents of the same or even different districts. For example, residents of a multistory building can use electricity generated by the solar panel power station installed on the roof without any intermediaries (Mieterstrom model). France and Austria also have a similar experience.


Though, new business models where the income of producers depends on the existing tariffs and legislative acts which regulate activities of prosumers (consumers who consume what they produced) require a more structured legislative framework. Currently, the European Commission is dealing with this issue.


Prosumers’ potential is very substantial: it’s expected that by 2050 every second citizen in Europe – around 264 million people – will produce their own electricity.


The following trends will be observed during the next five years:


  • prosumers will become a substantial support for the operators of the network, as they will become new suppliers. Their interests will be taken into the account during the consideration of questions related to the solar energy consumption. Though, the situation  may vary depending on the level of local RES market development as well as the availability of capacities for apportioned electricity generation;
  • the market of «smart» devices will be actively developing: high tech household appliances as well as «intellectual» electricity meters with integrated network devices;
  • the competition between communal services and new market players will become more fierce, new services will emerge including the assistance in procurement of equipment for electricity generation and consumption, outsourcing management of energy surplus, etc.    
  • development of the apportioned generation of electricity will influence «green» tariffs, as the transition to the use of electricity produced by millions of consumers can unbalance the system of electricity supply.

Increasing role of tenders in the development of the industry

Global tenders for the creation or development of «solar» projects allow to track changes in energy prices during last 2 years: $55 per MW per year in Argentina, $32,8 MW per year in Mexica, $26,7 MW per year in the USA. Currently, the cheapest price is in Abu-Dhabi (UAE) auction – $24,2 MW per year.


Tenders will continue to play a significant role in the development of global solar projects. At the same time, the major attention will be paid to the effectiveness of the implementation of leading projects. Tenders with representatives from different countries will become more common. This approach was already applied by Germany and Denmark.

The emergence of new leaders in the sector

The global solar market is growing faster than other spheres of RES and attracts new players. Even though there are a lot of start-ups among them, the main share of the market in all sectors pertains to global corporations. European energy generating companies are among leaders: Italian Enel S.p.A, German Innogy, and French Engie


Total and Shell, two petrochemical giants, as well as Schneider Electric, ABB та GE corporations focused on the development of intellectual energy systems and «smart» household appliances are ready to invest into solar power parks too. Huawei has already entered the sector of servicing and operation of solar facilities, while Google developed the software for modeling of SPP (solar power plants).    


Such car manufacturers as Tesla, Daimler, and BYD also have their share of the solar energy market as they invest into the production of solar panels and accumulators.


In the future, we should expect the appearance of «solar supermarkets». Already now the Swedish hypermarket IКEA proposes a pilot program of solar power systems retail in some European countries.  

The interest of business in solar power

More and more companies use «green» energy because of the following advantages:


  • economy: the purchase of «green» energy allows companies to control and cut expenses as well as increase their competitiveness.
  • protection of the environment: is an important factor for organizations working in accordance with sustainable development principles.
  • building the reputation of a responsible brand.   

At the same time, organizations can not only buy electricity in accordance with «green» tariffs but invest in «solar» projects as well.


These are 6 key global trends in the solar power industry. As for Ukraine, after it has joined the International RES agency (IRENA), the emergence of a larger number of investors into «solar» projects is expected. Taking into the account the acquired responsibilities, the share of RES in Ukrainian energy balance is expected to increase several times and amount to 11% within the next several years. In the nearest future, a lot of changes and innovations will appear on the Ukrainian energy market. For example, the launch of auctions for distribution of «solar» energy quotas, development of apportioned generation and combined SPS which will be able to preserve energy and in such way compensate the misbalance of the energy system. In the next 5 years, we’ll be able to see whether these trends will dominate the market.