Solar PV Microgrid Market Size - By Connectivity (Grid Connected, Off Grid), By Storage Device (Lithium-ion, Lead Acid, Flow Battery, Flywheels), By Grid Type, By Application, Regional Outlook & Global Forecast, 2024 – 2032

Solar PV Microgrid Market Size

The global solar PV microgrid market was valued at USD 2.5 Billion in 2023 and is estimated to grow at a CAGR of 21.6% from 2024 to 2032. It is a localized energy system that utilizes photovoltaic (PV) panels to generate electricity from sunlight. It operates independently or in conjunction with the main power grid. The microgrid typically includes solar panels, inverters, and energy storage systems such as batteries, which allow for the storage and distribution of excess power. These systems are particularly beneficial in remote or off-grid areas, providing a reliable and renewable energy source.
 

Declining cost of solar PV technology, coupled with advancements in battery storage systems, allowing users to generate electricity on-site and store excess energy for later use will foster product adoption. Rising need for energy security and resilience, particularly in regions vulnerable to power outages or in areas where grid infrastructure is unreliable will propel product demand.
 

Global shift towards renewable energy sources to mitigate climate change and meet carbon reduction goals will boost the integration of renewable energy into power systems leading to business growth. Furthermore, continuous development of technologies such as advanced inverters, battery energy storage systems (BESS), and control systems to make microgrids more efficient and reliable will augment the product penetration.
 

Solar PV Microgrid Market Trends

Increasing government initiatives, such as tax credits, grants, and subsidies to promote solar energy as a power source will create lucrative opportunities for product adoption. Furthermore, many countries, particularly in North America, Europe, and Asia Pacific, have introduced policies to incentivize the deployment of renewable energy systems, thereby driving the market growth. Additionally, regulatory frameworks aimed at decentralizing power generation and promoting renewable energy solutions will further facilitate product adoption.
 

Solar PV Microgrid Market Analysis

Based on grid type, the hybrid segment is anticipated to cross more than USD 2.2 billion by 2032, owing to enhanced energy security and reliability. Increasing adoption of cost-efficient and fuel-saving grid solutions, especially in remote areas, will boost the product adoption. Furthermore, rising pressure on industries, governments, and communities to meet their sustainability goals is set to stimulate product adoption offering reduced emissions while maintaining grid stability. Growing technological advancements in hybrid solutions aiming to increase efficiency, affordability, and scalability of energy storage systems, allowing for better integration of renewable energy into the grid will foster the business statistics.
 

Based on connectivity, the grid connected segment is set to grow at a CAGR of over 22% through 2032, on account of its enhanced energy security and stability. Increasing demand for connectivity offering cost savings through both reduced energy bills and better energy management will propel the product adoption. Furthermore, rising integration of advanced energy storage systems into grid-connected microgrids to improve their reliability and flexibility will foster product penetration. Rapid urbanization in many regions leads to increased energy demand, making the traditional grid more susceptible to overload and outages will lead to industry expansion.
 

Asia Pacific solar PV microgrid market is set to cross USD 8.6 billion by 2032. Rapid urbanization in countries such as India, China, and Indonesia necessitate the need for sustainable energy solutions augmenting the product demand. Increasing government implementation of supportive policies and incentives to promote renewable energy adoption will augment the business landscape. Furthermore, the growing shift towards decentralized energy generation, particularly important in rural areas where extending grid infrastructure is economically unviable will complement product growth.
 

In the U.S., rising concerns about energy independence and security coupled with increasing frequency of extreme weather such as hurricanes and wildfires will amplify the product demand. Increasing awareness of climate change and environmental sustainability is driving the requirement for clean energy solutions. Furthermore, many companies are committing to net-zero emissions targets and integrating renewable energy solutions into their operations complementing the market growth.
 

Solar PV Microgrid Market Share

Eminent players are investing in research and development crucial for enhancing the efficiency and reliability of solar PV systems. Companies are focusing on advanced energy storage solutions, smart grid technology, and integration with IoT (Internet of Things) devices. Key players are forming partnerships with local governments, utilities, and technology firms to develop and implement microgrid projects. Furthermore, companies are expanding into emerging markets where demand for renewable energy is increasing. They are diversifying their product offerings to include hybrid systems that integrate solar with other renewable sources, enhancing energy resilience and reliability.
 

Solar PV Microgrid Market Companies

Eminent players operating in the solar PV microgrid industry are:

• BoxPower
• Caterpillar
• Coldwell Solar
• EnSync Energy Systems
• G&W Electric
• Megamax Solar
• Schneider Electric
• SepiSolar
• Tata Group
• Team Sustain
   

Solar PV Microgrid Industry News

• In January 2024, Royal Johannesburg and Kensington Golf Club collaborated with Solarise Africa, Hooray Power, and Caracal Engineering, to unveil the largest solar microgrid at a golf club in the country. The project integrates renewable energy into the club’s infrastructure, significantly reducing both noise pollution and carbon emissions typically generated by the conventional power sources. This solar initiative demonstrates the commitment to environmental sustainability and provides a more reliable energy source, protecting operations from external power disruptions.
   
• In April 2023, ESS Tech, is poised to provide three Energy Warehouse systems to Coldwell Solar, a prominent player in California's renewable energy landscape. These systems are destined for a solar-plus-storage microgrid at three renowned wineries in Mendocino County. Coldwell Solar worked closely with the wineries to craft a system that meets their specific requirements, aiming for the microgrid to run by late 2023.
   

The solar PV microgrid market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “USD Billion & MW” from 2021 to 2032, for the following segments:

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Market, By Connectivity

• Grid Connected
• Off Grid

Market, By Application

• Healthcare
• Educational Institutes
• Military
• Utility
• Industrial/ Commercial
• Remote
• Others

Market, By Storage Device

• Lithium-ion
• Lead Acid
• Flow Battery
• Flywheels
• Others

Market, By Grid Type

• AC
• DC
• Hybrid

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
  • Russia
  • Spain
  • Italy
  • Denmark
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Malaysia
  • Indonesia
• Middle East and Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Iran
  • Nigeria
• Latin America
  • Brazil
  • Argentina
  • Chile