Market Segmentation
The building integrated photovoltaics market is primarily driven by favorable government regulation in the form of subsidies and reduction in taxation related to BIPV. Since 2000, the remuneration for electricity produced via renewable resources has been regulated by Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz, EEG). According to EEG, the support of renewable energy production is based on cost allocation. Energy consumers pay an EEG surcharge, which complies with the balance cost and profit. The installations on buildings and noise protection walls are divided into four capacity categories with the benefits offered by the government calculated based on the category.
To boost the penetration of BIPV solutions, the Building Technologies Office (BTO) and the Solar Energy Technologies Office (SETO) in March 2022, issued a request for information for gaining insights on the commercial and technical challenges and opportunities for building-integrated photovoltaic (BIPV) systems in the U.S. The government schemes and offerings regarding the use of building-integrated photovoltaics as a source of energy generation are expected to have a positive impact on the number of BIPV installations over the forecast period. Moreover, the demand for BIPV installations is anticipated to increase over the forecast period in the wake of such favorable regulations initiated by the government in different countries.
Renewable power generation cost has witnessed a very steep decline and in the current scenario are very competitive to meet the need for new capacity. For instance, solar photovoltaics have resulted in a decrease of approximately ~72% for the levelized cost of electricity (LCOE) which is one of the highest as compared to other renewable energy technologies such as wind. This fall in the prices of solar power generation came with the reduction of installation costs for solar modules, cells, inverters, and related equipment. According to the report published by the International Renewable Energy Agency (IRENA) in July 2022, the cost for renewables continued to fall in 2021 despite of the rising commodity prices and supply chain challenges on account of the COVID-19 variants. As per data provided by IRENA the cost of electricity generation from solar PV fell by 13%, offshore wind by 13%, and onshore wind by 20% in 2021 compared to 2020. In addition, the rising fossil fuel prices due to the demand and supply gap arising from the sudden surge in demand of fuels post normalization of operations acted as a driving factor for increasing the adoption of renewable energy projects. As per the data published by IRENA, the renewable power added in 2021 is estimated to save around USD 55 billion from global energy generation costs in 2022.
The installation of BIPV is technology-intensive and complex and it requires significant knowledge of the installation process and customization possibilities. The use of BIPV installations for roofing systems involves high cost due to the use of various components such as inverters, meters, system monitors, combiner boxes, and wirings. However, the installation of integrated systems incurs less cost when the installation takes place during the construction as compared to the cost incurred on installing the integrated circuit after the construction. The initial investment cost for BIPV is comparatively higher than that of other photovoltaic installations and conventional construction solutions owing to the high investment cost limits the consumer base opting for BIPV installations.
The demand for integrated photovoltaics is expected to be restrained by the high initial investment over the forecast period. However, the economic considerations and superior return on investments in the long-term are expected to drive BIPV market over the forecast period. The initial cost of BIPV materials stems from the cost of planning, design, and installation of the systems. The cost of BIPV systems is higher in Europe and North America due to the higher cost of constituent raw materials such as silicon and cadmium telluride. However, the price of BIPV materials is expected to decline over the next seven years due to the significant technological advancements is expected to the reduce the production cost for integrated photovoltaic systems.
This section will provide insights into the contents included in this building-integrated photovoltaics market report and help gain clarity on the structure of the report to assist readers in navigating smoothly.
Industry overview
Industry trends
Market drivers and restraints
Market size
Growth prospects
Porter’s analysis
PESTEL analysis
Key market opportunities prioritized
Competitive landscape
Company overview
Financial performance
Product benchmarking
Latest strategic developments
Market size, estimates, and forecast from 2018 to 2030
Market estimates and forecast for product segments up to 2030
Regional market size and forecast for product segments up to 2030
Market estimates and forecast for application segments up to 2030
Regional market size and forecast for application segments up to 2030
Company financial performance