Walking on sunshine: Government support for renewable energy will result in soaring revenue

The Solar Power industry has experienced clear skies over the five years to 2017, propelled by favorable government incentives in the form of renewable portfolio standard (RPS) targets and tax credits. Increased public support for green energy has led to tax incentives and grants to encourage investments in solar power. Additionally, equipment costs have continued to fall over the period. Moving forward, government support will continue to help the industry compete with other energy sources. State mandates for renewable energy power and lower input costs will continue to translate into sustained revenue growth. These trends suggest that the industry will become more viable over the next five years, lowering its dependence on government assistance...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Federal and state government assistance for renewable energy has led to strong growth in solar power
  • The rise of innovative financing mechanisms contributed to industry revenue growth
  • More states are expected to introduce or expand renewable energy targets with specific requirements
  • Industry Report - Starting a New Business Chapter

    The Solar Power industry is capital intensive: high capital costs are incurred to set up the necessary solar infrastructure before power generation can commence. As a result, new entrants need to secure a significant amount of capital and investments to enter into the industry. The industry does benefit from growing concern over greenhouse gas emissions associated with fossil fuel-fired power plants, and strong public support has produced tax incentives to mitigate the large initial costs. However, production costs for solar power remains higher than those associated with fossil fuels like coal.Finding operators and experts who have extensive knowledge of the industry is a barrier to entry. Mos...purchase to read more.

    Additional Insights for the Solar Power Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Solar Power Industry are

  • Ability to negotiate contracts with downstream customers
  • Ability to pass on cost increases
  • Optimum capacity utilization
  • IBISWorld analysts also discuss how external factors such as Tax credits for energy efficiency and Electric power consumption in the Solar Power industry impact industry performance..

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    What's in this report

    What is the Solar Power Industry?

    Operators in this industry own and operate solar-power-generating facilities in the form of either photovoltaic panels or solar thermal power stations that make use of mirrors or lenses to concentrate the sun’s energy. This industry covers utility-scale solar and does not include distributed energy.

    Industry Products
  • Photovoltaic power
  • Concentrating solar power
  • Industry Activities
  • Solar-fueled power generation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Tax credits for energy efficiency
  • Electric power consumption
  • Price of natural gas
  • World price of steaming coal
  • Price of semiconductor and electronic components

  • Current Performance
  • Strong government support
  • Innovative financing mechanisms
  • Falling panel prices spur growth
  • Dawn of solar
  • Chart: Revenue Growth

  • Industry Outlook
  • Push for solar energy
  • In favor of PV, distributed solar on the rise
  • Favorable market conditions
  • Table: Solar Power Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Solar Power Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Electric Power Transmission

  • Key Selling Industries
  • Solar Panel Manufacturing
  • Steel Framing

  • Products & Services
  • Photovoltaic power
  • Concentrating solar power
  • Chart: Solar Power Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential sector
  • Commercial sector
  • Industrial sector
  • Transportation sector
  • Chart: Major Market Segmentation for the Solar Power Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Solar Power

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Solar Power Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Solar Power Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Solar Power Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Electric Power Consumption (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Concentrating Solar Power (Csp)
  • A technology that uses mirrors to focus sunlight on a surface to create energy.
  • Intermediate Power
  • Electricity from sources that can be switched on or off to meet seasonal demand.
  • Photovoltaic Cell
  • A specialized semiconductor diode that converts sunlight into electricity.
  • Renewables
  • All types of renewable energy.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Solar Power can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Solar Power:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Solar Power market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Solar Power, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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