Case Study Report "The Renewable Energy Sector: Solar PV Market"

Abstract

The renewable energy industry is the future of power consumption. Green electricity or renewable energy is generated from natural resources which has less environment impact to our Earth compared to fossil fuel energy. Using renewable energy reduces the amount of carbon dioxide into the atmosphere. These will help to reduce climate change or global warming. Renewable energy sources like solar energy will reduce our dependence on fossil fuels and noble gases which are in a current state of depletion (Uswitch, 2017). The solar photovoltaic (PV) systems harness the solar energy from the sun and convert this to usable electricity. These systems have a huge amount of growth potential with exponential growth in population and a constant need for power supplies. There has been a steady increase in the current growth of solar PV systems with no indication of a future decline. It was found that this technology is more viable in Asian countries due to low production and wage costs for labour. The main variables causing growth in this sector is population growth and increased per capita income. There are also continuous environmental public policies being set which favour the use of renewable energy resources including solar PV systems. Crystalline silica is the most common main component used needed to produce these systems and the changing cost of this will affect the future market. Using Porter’s competitive model, it was found that the rivalry among competitors is medium to high. There is little threat of substitute products entering the market. Suppliers possess medium to high level of power to bargain. There has been an increasing number of installation of solar PV panels which indicates that in the future the bargaining power of customers could be considerably high. The price elasticity for the solar market was found to be relatively high. Overall there is high potential for growth within this industry and no indication that there would be a decline in the years to come.