European PV companies adopt new business models to create growth opportunities

A new research report from Frost & Sullivan shows that the European photovoltaic market recovered significantly in 2017, adding 8.6GW of solar power generation capacity, mainly due to cost reductions brought about by technological advances and novel business models.

Since 2016, the growth of the solar power market has been driven largely by technological advances, cost reductions, and the development of new business models, such as on-site direct small-scale power purchase agreements (PPAs), which are particularly popular among large-scale solar project developers to overcome regulatory barriers. Fully automated energy management in all sectors and sectors at the local level and in peer-to-peer models will promote new financing methods. The realization of such business models will enable PV system installers to provide solar energy and its services.

"Solar power is an industry that is heavily dependent on government support," said Irmak Giray, research analyst at Energy & Environment. "Reducing subsidies and feed-in tariffs (FiTs), tax incentives, rebate schemes and fund allocations will have a huge impact on the market. For example, the UK solar market saw a 53.8% year-on-year drop in new capacity in 2017 as the country scaled back its solar subsidy scheme. On the other hand, the French and Dutch markets added capacity due to favorable support mechanisms."

Frost & Sullivan's recent analysis covers the European photovoltaic market, forecasting to 2025, including an in-depth analysis of the solar market with a particular focus on: Austria, Belgium, Germany, Italy, the United Kingdom, France, Spain, Turkey, the Netherlands, the Nordic countries, and the rest of Europe. Trends analyzed include: residential, commercial and industrial (C&I), and end-customer.

“Once prices start to fall, regulation will no longer be an influential factor,” Giray said. “Economies of scale and increased automation in production will accelerate the decline in solar panel and installation prices, which will encourage consumers. In addition, long-term contracts such as solar leasing programs and PPAs will allow investors to reduce costs and risks by using clean energy.”

In the highly fragmented solar market, players are expected to consolidate from 2018 to maintain price competitiveness and promote collaboration among various stakeholders, including module manufacturers, energy companies, end-users and government organizations. There will be more growth opportunities in:

- Apply digitization and advanced digital technologies to solar energy systems.

-Expanding product offerings to include residential and commercial and industrial (C&I) energy storage.

- Integrating energy storage solutions with PV systems, providing new investment opportunities for project developers, utilities, software solution providers and system integrators.

-Acquire or partner with established developers and smaller companies with technology that can improve the operational performance of existing or future solar assets in target development countries.

- Use a multi-channel approach to effectively target the market.

(Original text from: Renewable Energy Magazine New Energy Network Comprehensive)