Asia Pacific (APAC) solar power market size was US$ 317.4 billion in 2022 and is projected to reach US$ 2,486.7 billion by 2031, growing at a compound annual growth rate (CAGR) of 25.7% during the forecast period from 2023 to 2031, as per the Astute Analytica market report.
As per the report, the Asia Pacific region has established itself as a powerhouse. The Asia Pacific solar power market is expanding due to falling solar panel prices, a focus on distributed solar power generation, and rising energy storage demand.
It said India has advanced significantly in the Asia Pacific solar power market after China, with its solar capacity expected to surpass 56 GW in 2022. India’s energy buying practices are changing owing to competitive pricing. Thus, this decline in cost will fuel the adoption of solar power in the region.
By the end of 2022, China has been leading the pace and has built a solar capacity of 390 GW. The market expansion is expected to be fueled by increasing PV capacity.
In the solar power market, solar electricity has significantly decreased in price. In fact, from 2010 to 2022, the cost of solar panels decreased by 82%.
Solar installations that are decentralized or distributed have become a recognized trend in the Asia Pacific region. “This strategy involves dispersing smaller solar systems over a larger region of the planet. Australia demonstrated the success of this tendency. The nation had more than 3.5 million rooftop solar installations in 2022. That translates to almost 21% of Australian households using solar power, a huge increase from just 0.2% a decade earlier,” said the report.