After a dip in 2016, the European solar power market recovered remarkably in 2017 to add 8.6GW of solar capacity, according to Frost & Sullivan, a market research company.
The growth was largely driven by technological progress, cost reductions and the development of novel business models such as on-site direct wire mini power purchase agreements (PPAs). According to the report, “European Solar Power Market, Forecast to 2025,”this business model is particularly popular among large-scale solar project developers to overcome regulatory barriers, while fully-automated energy management across all sectors and segments on a local level and peer-to-peer models will facilitate new methods of financing. The implementation of such business models will enable PV system installers to offer solar energy-as-a-service.
"Solar power generation is heavily reliant on government support,” said Irmak Giray, Research Analyst, Energy & Environment for Frost & Sullivan. "Reductions in subsidies and feed-in tariffs (FiTs), tax benefits, rebate programs, and fund allocations will have a huge effect on the market. For instance, new capacity in the UK solar market showed a year-on-year decline of 53.8% in 2017, as the country had scaled back solar subsidy programs. On the other hand, the markets in France and the Netherlands added capacity due to favorable support mechanisms."
According to the report, participants in the highly-fragmented solar market are expected to start consolidating from 2018 to remain price competitive as well as foster collaborations among various stakeholders, including module manufacturers, energy companies, end users and government organizations. There will be additional growth opportunities in:
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