Solar Power Generation Industry Profile

Companies in this industry operate power generation facilities that use energy from the sun to produce electric energy. Major companies include diversified electric utilities and independent producers Berkshire Hathaway Energy, NextEra Energy, Pacific Gas and Electric, Southern California Edison, and TerraForm Power (all based in the US); as well as Beijing Enterprise Holdings Limited (Hong Kong), Enerparc (Germany), Lightsource BP (UK), and SPIC (China).

China leads the world in installed solar energy capacity, followed by the European Union, the US, Vietnam, and Japan, according to Investopedia. China is the top producer of solar energy with about 50 gigawatts (GW) of photovoltaic (PV) capacity in 2020.

The US solar power generation industry includes more than 200 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $2 billion that provide a small but growing amount of the nation's electricity. Overall, solar energy accounted for about 15% of primary energy consumption by energy source in the US in 2022, according to the US Energy Information Administration (EIA).

COMPETITIVE LANDSCAPE

As with other power sources, demand for solar power is driven by residential, commercial, and industrial electricity demand, which increases with population and economic growth. Additionally, growing concern over environmental and geopolitical issues surrounding fossil fuels has boosted interest in renewable energy sources such as solar.

The profitability of individual companies is determined by government regulations and incentives, as well as technological ...