The rapid growth of the solar farm market in recent years can be attributed to the low cost of photovoltaic panels and the large number of companies producing solar water farms. With the implementation of government regulations that aim to reduce dependence on fossil fuels and minimize pollution, consumer awareness of solar water farming is increasing. SEIA claims that the federal government has enacted policies and legislation such as community solar and net metering to encourage the use of photovoltaic technology to generate electric power.
Government Regulations and Solar Energy Investments Drive the Global Market
There are several countries where consumers can use photovoltaic energy to meet their energy needs and then sold back to the grid for a profit. The solar photovoltaic industry in China has grown at an unprecedented rate compared to any other country over the past few decades. Photovoltaic
energy generated in China increased by 36% year on year, according to China Photovoltaic Industry Association. These rules encourage the adoption of photovoltaic technology. As a result, solar farms are expected to benefit from these new regulations. The demand for solar farms is expected to rise significantly as photovoltaic technology becomes more widely used in the future.
Several businesses are installing renewable energy plants due to environmental regulations. Solar is a competitive renewable energy source. Thus, many countries have begun investing in solar energy. This remarkable annual solar capacity installation helps the global market growth.
Growing Demand for Renewable Energy Creates Tremendous Opportunities
The IEA reports rising demand for renewable energy. The increased demand for P.V. Technology is due to the need for sustainable energy, a reduction in reliance on conventional fuels, and a reduction in carbon emissions. Increased energy demand from developing countries in Asia-Pacific, such as India, China, and Thailand, has led to significant growth in solar photovoltaic (P.V.), a form of wind and hydro energy. This is why solar P.V. has grown in recent years. Industrialization and urbanization are accelerating. In addition, strict government regulations to reduce carbon emissions from conventional fuels have increased the use of photovoltaic technology to generate electricity. As demand for renewable energy rises, so will demand for solar farms.
Asia-Pacific is the most dominant contributor to the global solar farm market, growing at a CAGR of 19.8% during the forecast period. An increase in government initiatives, such as Akshay Urja, which includes the electrification of rural areas, is the primary factor driving growth in the solar farm market in the Asia-Pacific region. As a result of these initiatives, governments will likely distribute solar lighting systems in more rural areas, which is expected to increase the demand for PV energy. These kinds of initiatives are anticipated to boost consumer demand for solar farms, contributing to the market's expansion.
North America is the second-largest contributor to the market and is estimated to reach around USD 70,880.6 million at a CAGR of 20.2% during the forecast period. The increasing prevalence of photovoltaic (PV) technology drives increased demand for North American solar farms. Solar photovoltaic (PV) systems are seeing a surge in adoption to generate electricity for use in residential and commercial settings. Additionally, governments are making efforts to promote solar photovoltaic technology. It is anticipated that these kinds of initiatives will contribute to market growth. To encourage photovoltaic (PV) technology, the United States federal government has initiated solar community projects and implemented policies such as net metering.