Global RTS Achieves 15% Growth In 10Yrs, Hits 105 GW: CEEW

Global RT Solar Achieves 15% Growth In Last Decade, Hits 105 GW: CEEW

The global transition to solar photovoltaic (PV) technologies, particularly distributed solar or rooftop solar (RTS), is playing a pivotal role in helping economies like India, China, the US, Japan, and Australia meet their net-zero targets.

A recent study by CEEW, “Global Perspectives on Rooftop Solar Energy A Deep Dive on How Leading Economies Advance Rooftop Solar Energy Adoption” dwells into the growth of the rooftop solar segment, in the last decade. According to report’s finding, the global rooftoop solar has achieved 15% growth in the last  10 years. The think tank in its finding highlighted that specifically between 2021 and 2022, global utility-scale solar installations declined, with their share dropping to 58% and 53% of total installations due to supply chain disruptions and rising PV system costs.

Concurrently, increasing retail electricity prices spurred residential and commercial rooftop solar installations. By 2023, as per the report, the RTS market experienced a remarkable 67% growth, with installations soaring from 105 GW in 2022 to 175 GW in 2023. It identified, China to be among the leading countries in the global RTS market with 225 GW of cumulative installed capacity, followed by Germany and the US, where the residential sector has grown sevenfold over the past decade.

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In the early 2000s, Japan and Germany led the way with rooftop installations supported by feed-in tariffs (FiT) programs. From 2006 onward, falling solar module prices and favorable incentives accelerated the adoption of utility-scale solar projects, which dominated the global solar landscape until 2016.

Global Rooftop Installation

This report primarily focuses on the distributed solar segment, especially rooftop solar (RTS), across consumer categories. It selected the top ten countries leading in distributed solar PV deployment (as of 2022) for their study which includes China, Germany, the United States (US), Japan, Australia, Italy, Brazil, India, and Vietnam. However, Turkey was excluded due to the unavailability of information in the public domain. The report provides a comparative analysis of RTS development across nine top-performing countries.

Role Of Feed-in Tariff in Rooftop Solar Expansion 

According to a recent report by CEEW, the Feed-in tariffs (FiT) and feed-in premiums (FiP) programs significantly contributed to the rapid expansion of RTS by improving the financial viability of systems during the industry’s early stages. As per the report’s findings, countries such as the US, Italy, China, and Japan successfully implemented these schemes, gradually reducing the FiT rates while sustaining market demand in the distributed PV segment. In contrast, Vietnam’s FiT scheme faltered due to the absence of a long-term policy framework, insufficient energy infrastructure, and limited grid capacity, despite an initially promising start.

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The study found that countries such as the US, Italy, China, and Japan have successfully implemented Feed-in tariff schemes through a phased approach, gradually reducing the FiT rate while ensuring market demand remains high in the distributed PV segment. However, reportedly,Vietnam installed a record capacity of ~9 GW in a year (2020), driven by a generous FiT scheme. The report marked certain challenges such as a lack of a long-term policy framework, inadequate energy infrastructure, and limited grid capacity led to the eventual discontinuation of the FiT scheme despite its initial momentum.

The report mentioned that policy support has contributed to countries rolled out inclusive programmes to tap into RTS potential across consumer categories. For example, the Solar Energy for Poverty Alleviation Programme (SEPAP) in China, the Social Renewable Energy Development Programme (PERS) in Brazil, and the PM Surya Ghar: Muft Bijli Yojana in India.

The report identified, that among leading solar nations, diverse financial mechanisms have been employed to support the residential segment. These include capital subsidies and financing options like low-interest loans, enhancing consumer access to RTS, finds the study. For instance, it gave the example of India offers capital subsidies of up to 3 kW for residential consumers, while China and Japan adopt similar approaches. Meanwhile, the US, Brazil, and Germany have focused on providing low-interest loans to facilitate RTS adoption.

Residencial Solar Domiates The Market

The report elaborated, that in Brazil, the residential sector dominates RTS deployment with a 48% market share as of March 2024, while Australia leads globally in per capita RTS deployment at 0.83 kW per person. India, focusing on inclusive solar development, introduced the PM Surya Ghar: Muft Bijli Yojana to promote residential rooftop solar adoption. As of March 2024, India has an installed solar capacity of 81.9 GW, with 11.9 GW comprising grid-connected RTS. Globally, India ranks fifth in overall solar capacity and eighth in distributed PV installations, with an estimated RTS potential of 637 GW in the residential sector.