Sun's out: Government support will continue to help the industry compete with other energy sources

The Solar Power industry has experienced clear skies over the five years to 2018, propelled by favorable government incentives in the form of renewable portfolio standard targets and tax credits. Federal and state government assistance for renewable energy has led to exceptionally strong growth in solar power. The increase in projects over the past five years exemplifies a triumph for industrial policy in solar power, which historically struggled to compete with established energy sources, such as coal and natural gas. Over the five years to 2023, industry revenue is expected to increase. Government support will continue to help the industry compete with other energy sources, at least for half of the next five years...purchase to read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 13-18
49.9%
Forecast Growth 18-23
Profit
Employment
3,293
Businesses
313
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The increase in projects over the past five years exemplifies a triumph for industrial policy in solar power
  • The drop in solar panel prices has also resulted in widening profit margins
  • More states are expected to introduce or expand renewable energy targets with specific requirements for solar power
  • Industry Report - Industry Analysis Chapter

    The Solar Power industry has been basking in sunlight over the past five years, spurred by strong government incentives and falling input costs. Industry performance is dependent on the volume and price of solar generation, which is driven by overall electricity consumption. However, extremely high capital costs and competition from established energy sources have historically hindered solar energy generation. Recently, industry operators have benefited from attractive tax credits and requirements for downstream utilities to diversify energy holdings and integrate renewable energy into their portfolio. In addition, falling prices of solar photovoltaic (PV) installations have propelled the industry forward. As ...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
  • Other
  • 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
  • Profit
  • Depreciation
  • Wages
  • Purchases
  • 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Electric Power Consumption (2009-2023)

  • 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 provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    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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