Asia-Pacific Solar PV Market Outlook to 2030

Asia-Pacific Solar PV Market Overview

• The Asia-Pacific Solar PV market boasts a cumulative installed capacity of 893.67GW, based on a five-year historical analysis. The market is primarily driven by the increasing demand for clean and renewable energy sources, the region's rapid urbanization, and government initiatives like subsidies and tax benefits. Countries such as China, India, and Australia are at the forefront of the solar energy push, with governments strongly supporting the transition towards green energy and the rising investments in solar infrastructure.
• China, India, and Japan dominate the Asia-Pacific Solar PV market due to their favorable regulatory frameworks and some investments in renewable energy projects. China, as the worlds largest producer of solar panels, benefits from its vast manufacturing capabilities, while Indias rapidly growing solar capacity is fueled by ambitious government targets. Japan's robust government policies and technological advancements also contribute to its leadership in the market.
• Governments across the Asia-Pacific region have established ambitious renewable energy targets that are driving solar PV adoption. China aims for solar energy to account for 20% of its energy mix by 2030, while India has set a target of achieving 500 GW of renewable energy capacity by 2030, with 100 GW from solar. These targets are supported by a range of policy mechanisms, including tax incentives and favorable tariffs for solar projects. Additionally, India's installed solar capacity reached 89.4 GW as of August 2024, reflecting substantial progress towards its goals.

Asia-Pacific Solar PV Market Segmentation

The Asia-Pacific Solar PV Market is segmented by technology, application type, end-user industry, product type, and geographical region.

By Technology: The Asia-Pacific Solar PV market is segmented by technology into On-Grid, Off-Grid, and Hybrid systems. On-grid solar PV systems dominate the market due to their compatibility with the region's energy grids, reduced installation costs, and favorable government policies encouraging grid-connected solar energy. The strong demand from utility-scale projects further cements this segments dominance, particularly in countries like China and India where large solar farms are being integrated with national grids.

By Application: The market is also segmented by application into Utility-Scale, Residential, and Commercial & Industrial (C&I) sectors. Utility-scale solar PV systems hold a dominant share due to their large-scale installations across various countries, driven by government mandates and favorable tariffs. The C&I sector is also gaining momentum as more corporations aim to meet sustainability goals through renewable energy adoption. Countries such as Australia and Japan see C&I adoption due to increasing energy costs and policies promoting self-sufficiency.

Asia-Pacific Solar PV Market Competitive Landscape

The Asia-Pacific Solar PV market is dominated by several key players, including both global and local manufacturers. Companies such as JinkoSolar and LONGi have established a strong presence in the region through strong distribution networks, technological innovation, and competitive pricing. Additionally, local players like Adani Solar and Tata Power Solar Systems benefit from strong government support and localized market expertise, making the market highly competitive. International players like First Solar continue to maintain a foothold through technological innovations, particularly in module efficiency.

Asia-Pacific Solar PV Market Analysis

Asia-Pacific Solar PV Market Growth Drivers:

• Declining Solar PV Costs (Silicon Wafer Pricing, Module Efficiency Gains): The cost of silicon wafers, a critical component in solar PV modules, has indeed declined partially, reaching USD 0.08 per watt in early 2024, down from USD 0.10 in 2022, according to the China Photovoltaic Industry Association. Furthermore, technological advancements have led to module efficiencies exceeding 22%, resulting in higher electricity generation. This reduction in component costs and efficiency improvements has made solar PV systems more economically viable across Asia-Pacific markets, particularly in countries like India and Vietnam.
• Energy Transition Policies (Decarbonization Targets, Renewable Energy Mix Goals): Many Asia-Pacific countries have established ambitious decarbonization targets. South Korea aims to achieve 35% renewable energy in its electricity mix by 2030. The Philippines, through its Renewable Energy Act, aims for 15 GW of solar PV capacity by 2024. These policies support solar PV adoption and facilitate investments in both grid-connected and off-grid systems. Such energy transition policies are crucial for achieving regional carbon neutrality targets and driving the solar market's expansion.
• International Investment and Funding (FDI, Private Sector Funding, Green Bonds): The Asia-Pacific region has witnessed a surge in foreign direct investment (FDI) and private sector funding in the solar PV market. Vietnam received USD 7 billion in renewable energy investments in 2023, primarily focused on solar projects. Additionally, green bonds issued by the Asian Development Bank totaled USD 5.8 billion in 2023, much of which was allocated to solar PV infrastructure. These international funding streams provide essential capital for large-scale solar PV developments, enhancing the regions renewable energy capacity.

Asia-Pacific Solar PV Market Challenges:

• Grid Infrastructure Issues (Grid Integration, Energy Storage Requirements): One of the major challenge for solar PV adoption in Asia-Pacific is grid integration, particularly in countries like Indonesia and the Philippines, where outdated grid infrastructure limits the integration of variable renewable energy sources. In 2024, the International Energy Agency (IEA) reported that over 30% of potential solar PV generation in Southeast Asia is curtailed due to grid constraints. The need for energy storage systems is increasingly critical, with Australia setting aside AUD 100 million for energy storage development in 2024 to support solar energy integration.
• Regulatory Hurdles (Permitting, Land Acquisition Challenges): Regulatory hurdles, including complex permitting processes and land acquisition challenges, have slowed solar PV project implementation in several Asia-Pacific nations. In India, solar developers face delays averaging 12-18 months due to land acquisition issues, as reported by the Ministry of New and Renewable Energy (MNRE). The Philippines has experienced similar challenges, with several solar projects stalled due to overlapping land-use claims. These regulatory challenges create some bottlenecks in the otherwise growing solar PV market.

Asia-Pacific Solar PV Future Market Outlook

Over the next five years, the Asia-Pacific Solar PV market is expected to experience robust growth, driven by increasing investments in renewable energy, technological advancements in solar PV modules, and supportive government policies aimed at reducing carbon emissions. Countries like China and India are expected to continue leading the market in terms of installed capacity, while emerging markets in Southeast Asia and the Pacific Islands are likely to see substantial growth as they ramp up renewable energy efforts.

Asia-Pacific Solar PV Market Opportunities:

• Emerging Markets (Southeast Asia, Pacific Islands): Emerging markets such as Myanmar and the Pacific Islands do present many opportunities for solar PV expansion due to their high solar irradiance levels and growing energy demands. Myanmar has an annual average solar insolation of 5.2 kWh/m/day, positioning it as a promising market for off-grid and microgrid solar solutions. The Pacific Islands, heavily reliant on imported fossil fuels, have seen increased interest in solar as a reliable and cost-effective alternative. For instance, Fiji has set a target of achieving 100% renewable energy by 2030, with plans for 90 MW of new solar installations by 2025.
• Floating Solar Farms (Reservoirs, Off-Shore Potential): Floating solar farms are gaining traction in the Asia-Pacific region, particularly in countries with limited land availability. Thailand has installed a 45 MW floating solar farm at the Sirindhorn Dam, and Singapore aims to increase its floating solar capacity to 2 GW by 2030. Countries like Indonesia and Vietnam are also investing heavily in floating solar projects. For example, Indonesia has a 145 MW floating solar project at the Cirata reservoir, which is currently the largest in Southeast Asia. These systems reduce land use pressure and offer higher efficiency due to the cooling effect of water. With over 10% of Asia's solar PV projects now floating, this technology represents a major growth opportunity.