Industry: Industrial Automation
Published Date: August-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 201
Report ID: PMRREP34541
The market size for solar photovoltaic systems in Canada is estimated to be US$13.2 Bn by the end of 2031 from US$6.1 Bn recorded in 2024. The Canada solar photovoltaic system market is expected to register a CAGR of 11.7% during the forecast period of 2024 to 2031.
|
Attributes |
Key Insights |
|
Market Size (2024E) |
US$6.1 Bn |
|
Projected Market Value (2031F) |
US$13.2 Bn |
|
Forecast Growth Rate (CAGR 2024 to 2031) |
11.7% |
|
Historical Growth Rate (CAGR 2019 to 2023) |
6.7% |
Solar photovoltaic (PV) systems are technologies that convert sunlight directly into electricity. They are a key component of the renewable energy landscape, providing a clean, sustainable, and increasingly cost-effective alternative to traditional fossil fuel-based power generation.
The main environmental advantage of solar energy is that it does not emit greenhouse gases. In addition, it does not emit ionizing radiation, produce radioactive waste require the use of water, or cause noise pollution.
The PV system market of Canada is a significant and growing segment of the country's renewable energy sector driven by the growing need to reduce greenhouse gas (GHG) emissions, deregulation, and restructuring of electric power generating companies.
The robust increase in photovoltaic installations in the past few years indicates the technology is gaining popularity in Canada and is anticipated to witness a significant growth rate during the forecast period.
The Canada Solar Photovoltaic (PV) Systems market has witnessed significant growth over the past decade, driven by increasing environmental awareness, technological advancements, and supportive government policies. As of 2023, Canada had an installed solar capacity of approximately 3.6 gigawatts (GW), contributing substantially to the nation's renewable energy portfolio.
Government initiatives have played a crucial role in this market expansion; the federal government’s “Investing in Canada Infrastructure Program” and provincial incentives, such as Ontario’s Net Metering Program, have provided financial support and policy frameworks that encourage solar adoption in the country.
Solar PV system sales are further expected to be accelerated by the Clean Technology Investment Fund, which also aims to promote clean technology innovation and implementation. Modern solar technology advancements such as smart inverters, and bifacial panels are also boosting market growth and positioning Canada as a key player in the global solar PV system market.
Key Trends and Innovations Shaping the Market
Rising Environmental Concerns, and Favorable Government Initiatives
Environmental concerns and government initiatives to reduce carbon emissions are major forces behind the growing use of renewable energy sources, especially solar power. Like a lot of other countries, Canada is dedicated to halting climate change, and solar energy is essential to reaching sustainability objectives.
Due to the abundance of sunshine throughout the nation, particularly in areas like Ontario, and Alberta, solar photovoltaics is a desirable alternative for producing electricity.
The installed capacity of solar PV systems in Canada has been rising gradually, and by the end of 2023, it is expected to reach a record high of over 4,000 megawatts (MW), according to the most recent numbers provided by the Canadian Solar Industries Association (CanSIA). This growth trajectory highlights the nation's tremendous momentum for the adoption of solar PV.
Declining Costs of Solar Technology, and Advances in PV Technology
The Canadian solar PV market is mostly driven by the falling cost of solar technologies. Progress in photovoltaic technology, along with economies of scale and heightened competition, has resulted in a notable decline in the price of solar panels and associated equipment over time.
Solar energy is now more competitively priced and more accessible than traditional electricity sources because of this cost reduction. Consequently, utility-scale, commercial, and residential solar projects have grown more and more financially feasible across Canada.
Industry reports state that utility-scale solar PV projects in Canada have one of the most affordable sources of new power generation, with their levelized cost of electricity (LCOE) having dropped by more than 60% in the last ten years.
Intermittency Challenges in Canadian Solar PV Market
The challenge of intermittency is one major barrier that the Canadian solar photovoltaic (PV) market witnessing over the past few years. The production of solar energy is essentially reliant on the availability of sunshine, which changes with the seasons, the weather, and the time of day.
Because of this intermittency, solar PV systems' electricity generation varies, which puts the stability and dependability of the grid at risk. The intermittent nature of solar energy can result in mismatches between supply and demand, which could lead to grid instability or the need for backup power sources, unless there are efficient energy storage options or complementary production sources like natural gas or hydroelectric power.
The effective integration and deployment of solar PV systems in Canada's energy mix depends on addressing intermittency issues with energy storage technologies, grid management techniques, and diverse portfolios of renewable energy sources.
Expanding Renewable Energy Integration
Canada's renewable energy market, particularly in solar energy, is experiencing robust growth, positioning the country as a significant player in the global renewable energy landscape.
According to the 2022 Canadian Solar Report by the Canadian Renewable Energy Association (CanREA), the solar energy capacity in Canada grew by over 4 GW, marking a remarkable 25% increase in 2022 alone. This growth trajectory highlights substantial opportunities for further expansion in the solar photovoltaic (PV) system market.
The federal government's ambitious commitment to achieving net-zero emissions by 2050 is expected to catalyse significant investments in renewable energy infrastructure, including solar PV systems.
Several incentives are designed to encourage the adoption and installation of solar energy systems, presenting a favourable environment for market growth.
The projected growth in solar capacity, supported by these incentives, indicates a promising future for the Canadian solar PV system market. Stakeholders, including manufacturers, installers, and investors, stand to benefit significantly from the expanding market, as Canada continues its transition towards a sustainable and low-carbon energy future.
|
Category |
CAGR through 2034 |
|
Grid-Connected Systems |
4.5% |
|
Below 24 kW |
6.5% |
The Grid-Connected Systems Segment to Account for a Significant Share
The Canadian solar PV system market is poised for growth, with grid-connected systems expected to lead and provide the most significant growth opportunities in the future. This dominance is driven by several factors, including government policies, economic incentives, and the increasing need for sustainable energy solutions.
According to a report by the International Energy Agency (IEA), grid-connected solar PV installations in Canada have seen a substantial rise, particularly in provinces with favorable solar policies like Ontario and Alberta. As of 2023, grid-connected solar systems accounted for over 90% of the total installed solar capacity in Canada.
Residential Sector to Dominate
The residential segment is expected to lead and provide substantial growth opportunities in the future. This segment's growth is driven by multiple factors, including increasing environmental awareness, government incentives, and advancements in solar technology that have made residential installations more affordable and efficient.
As of 2023, residential solar PV systems accounted for approximately one-third of the total installed capacity in Canada, with significant growth observed in provinces like Ontario, Quebec, and British Columbia.
Canada is home to many cities with vast potential for solar energy. Some of the leading provinces in this regard are located in Western Canada, with Alberta and Saskatchewan at the forefront of solar energy capacity. Additionally, Quebec, Ontario, and Nova Scotia are following closely behind.
The Western part of Canada is considerably sunnier than other parts of the country, making it an ideal region for solar energy development. In 2022, the solar energy growth in these provinces was significant, with the following MW capacity.
|
Region |
MW Capacity (2022) |
|
Alberta |
1,391 MW |
|
Saskatchewan |
387 MW |
|
Quebec |
24 MW |
|
Ontario |
10 MW |
|
Nova Scotia |
2 MW |
Central Canada Remains Dominant
Central Canada, particularly Ontario, plays a pivotal role in the Canadian solar photovoltaic (PV) system market. Ontario leads the nation in solar PV installations. As of the latest data, Ontario accounts for approximately 98% of Canada’s total solar PV capacity. This equates to over 2,700 MW of installed solar PV capacity.
Ontario has implemented several supportive policies and incentive programs that have significantly contributed to the growth of solar energy. The Green Energy Act of 2009, and the Feed-In Tariff (FIT) program provided guaranteed pricing for renewable energy producers, which spurred investment and development in the solar sector.
The Prairie Provinces to Hold Lucrative Growth Opportunities
The province of Alberta has a unique structure in the power industry and has become a leader in renewable energy development. It is a deregulated sector that has become competitive, attracting investors and off-takers. Alberta is also becoming a sought-after region for geothermal energy investment.
Many renewable energy projects are assisting the government, companies, and organizations in providing renewable energy and reducing their carbon footprint.
Key Players like Canadian Solar, Northland Power Inc., Silfab Solar Inc., Heliene Inc. among others dominate the market, leveraging their extensive product portfolios, advanced technology, and substantial financial resources to maintain significant market shares.
The Canadian solar photovoltaic systems market witnessing several collaborations and partnerships among key players to expand their product portfolio, geographical expansion, and to mitigate supply chain disruptions in the country.
Manufacturers, such as SkyFire Energy, and Heliene, Inc. among others are entering into collaboration and partnerships to make solar energy more accessible and affordable in the country.
February 2024
Solar Offset Ltd., and SkyFire Energy established a collaboration on solar photovoltaic installation. Through this agreement, Solar Offset aims to make solar energy more accessible and affordable for all Albertans, thus accelerating the energy revolution.
May 2024
Silfab Solar, a pioneer in the design, development, and production of solar PV modules in North America, and Frankensolar Americas, a Canadian supplier of solar energy solutions, inked a strategic alliance. Through this partnership, Frankensolar Americas is demonstrating its dedication to developing and growing next-generation N-type cell technology in the Canadian market.
May 2024
Heliene, Inc. and UGE, (the "Company" or "UGE"), a top community and commercial solar developer, signed a multiyear module supply agreement and strategic relationship.
|
Attributes |
Details |
|
Forecast Period |
2024 to 2031 |
|
Historical Data Available for |
2018 to 2023 |
|
Market Analysis |
US$ Million for Value |
|
Key Regions Covered |
|
|
Key Market Segments Covered |
|
|
Key Companies Profiled |
|
|
Report Coverage |
|
|
Customization & Pricing |
Available upon request |
By Type
By Technology
By Installation
By End Use
By Region
To know more about delivery timeline for this report Contact Sales
Rising environmental concerns, government initiatives, declining costs of solar technology, and advances in PV technology to boost solar photovoltaic system market.
Grid-connected systems account for a significant market share.
Expanding renewable energy integration is estimated to present opportunities for the market players.
The Central Canada accounts for a significant share of the market.
Some of the key players operating in the market are Northland Power Inc., Canadian Solar Inc., Solvest, Silfab Solar Inc., SkyFire Energy, and Polar Racking.
