SOLAR REVOLUTION: Solar Energy Market Review 2025

Posted on 26 Mar 2025
SOLAR REVOLUTION: Solar Energy Market Review 2025
Abstract
The increasing urgency of climate change mitigation has brought forth an accelerated shift towards renewable energy sources, with solar energy being touted as one of the flagship technologies throughout the transition. This report is designed to provide an analysis of the solar energy market, focusing on trends, regulations, and technological advancements in OpenWeather’s three biggest markets: The United States, The UK, and Europe.
This report combines quantitative data analysis with case studies to demonstrate the practicality of solar energy technologies, and how OpenWeather products possess the tools to maximise production. The findings reveal significant advancements in photovoltaic (pv) technology and energy solutions, vital in improving the reliability of solar power farms. This report also discusses the economic and social benefits of solar technologies, including job creation, energy security, and reduction of carbon emissions.
The economic results signify the value of integrating meteorological data into solar projects. By doing research on the current state of affairs in the solar industry, and its future growth opportunities, the report presents actionable insights for policymakers, industry stakeholders, investors, and the general public.
Finally, the report concludes with recommendations aimed at fostering a sustainable growth pattern in the solar industry. There is a clear need for continued innovation and supportive policies. The adoption of solar energy is no longer a distant dream but a tangible reality.
Introduction
The transition towards renewable energy is crucial in the fight against climate change. Fossil fuels, which release harmful greenhouse gases, have long been the primary source of global energy, with their emissions contributing significantly to global warming, air pollution, and widespread health problems. Shifting to a renewable source such as solar power is essential to mitigate these impacts. With advancements in solar technology and data analytics, the energy market is expanding, and the onus placed on accurate solar irradiance and radiation data is becoming more and more prevalent.
Global Temperature Increase
The significance of this transition is emphasised by the consistent rise in global temperatures. According to NASA’s Goddard Institute for Space Studies (GISS), Earth’s average temperature in 2023 was the warmest on record, since record keeping started all the way back in 1880. This data shows that the Earth’s surface temperature in 2023 was about 1.36 degrees celsius warmer than the late 19th-century average. The last 10 years have been the warmest recorded, showing the need for action.
This graph shows the alteration in global surface temperature compared to the long-term average from 1951 to 1980, thereafter experiencing a drastic rise in temperature.
At OpenWeather, we have created Solar Irradiance and Energy Prediction services that can enhance the efficiency and reliability of solar energy projects. Our accurate services allow us to help those in need by preparing them for weather events, protecting their assets and operations. We believe that solar is paving the way to the future, and we want to play our part in laying the foundation, brick by brick.
Before we can understand how OpenWeather can improve the solar market, it’s important to gain a better understanding of the regulations and policies governing our three largest markets:
Regulations and Policies of the Solar Market in the UK, US and Europe
United States
Federal Investment in Solar Energy
The US is investing heavily in solar energy through policies such as the Inflation Reduction Act. This act provides large financial incentives and support for solar projects, with the goal of making solar power a highly accessible energy source. OpenWeather’s accurate solar irradiance data can improve the efficiency of these projects through effective project planning. Reliable data helps in selecting optimal sites for solar installations and improving the performance of solar panels, ultimately leading to higher energy outputs.
Addressing Climate Change
The US is aiming to reduce greenhouse gas emissions by 50-52% by 2030, a target that requires a substantial updraft in renewable energy use. Solar power is a key component of this strategy. Accurate solar forecasting helps in optimising the operation and maintenance of solar farms, ensuring constant top-tier performance and providing a consistent and reliable source of clean energy.
United Kingdom
Increasing Solar Capacity
The UK has plans to expand its solar capacity by 5 times to 70 GW by 2035. This involves deploying solar panels on rooftops as well as ground installations, increasing the country's renewable energy output levels. Achieving this requires precise solar irradiance and radiation data to optimise the placement and efficiency of solar panels. Accurate forecasting is vital for planning and executing large-scale solar projects, ensuring they meet their potential and contribute effectively to the UK's goals. Improved data can also help overcome geographical and climatic challenges, identifying the best locations for installations and maximising energy yield.
Enhancing Energy Security and Economic Growth
Expanding solar capacity aims to enhance energy security and economic growth, in addition to meeting environmental goals. By diversifying the energy mix and reducing reliance on fossil fuels, the UK can strengthen its energy security. The government's roadmap includes securing investments, reducing costs, and creating jobs in the renewable energy sector. OpenWeather’s advanced forecasting tools can support these objectives by ensuring solar projects are resistant to weather-related disruptions, enabling consistent energy production and contributing to a stable energy infrastructure. This stability is crucial for economic growth, providing a reliable energy supply for businesses and industries.
Europe
RePowerEU Plan
The RePowerEU plan accelerates the green transition and promotes massive investment in renewable energy, with the goal of reaching a 45% share of renewables by 2030. This plan aims to reduce dependence on fossil fuels and enhance energy security across Europe. OpenWeather can contribute by providing accurate solar data, which is vital for planning and optimising solar projects across the continent. Reliable data ensures that solar installations are placed in the most effective locations and operate efficiently, maximising their contribution to the renewable energy mix.
Net-Zero Industry Act
The goal of this act is to increase Europe’s manufacturing capacity for net-zero technologies, including solar power. This legislation includes measures such as accelerated permitting processes, market access facilitation, and improved operational efficiency. OpenWeather supports these endeavours by providing accurate energy site assessments, which are crucial for the planning and development of new solar projects. Improved forecasting and data analytics can accelerate project timelines, reduce costs, and improve the operational efficiency of solar installations. This support helps Europe achieve its net-zero targets and strengthens the continent's position as a leader in renewable energy technology.
Transitioning from understanding the regulatory and strategic landscape in place, it's important to understand the outcomes these regulations have on the solar energy sector. The next section highlights the growth rates and economic impacts across the three markets.
Statistics on Solar Energy Production and Impact
Growth Rate of Solar Energy Capacity
Graph 1: Installed Solar Energy Capacity
Shows the cumulative solar capacity measured in Gigawatts (GW) from 2000 to 2022 for the world, Europe, and the United States and the United Kingdom:
World: There has been a significant increase in installed solar capacity, reaching nearly 1,000 GW by 2022.
Europe: Shows a steady increase, reaching over 300 GW by 2022.
United States: Shows growth but at a slower pace than Europe, reaching approximately 150 GW by 2022.
United Kingdom: Shows growth as well, though much slower, reaching around 20 GW by 2022.
Graph 2: Solar (Photovoltaic) Panel Prices
Illustrates the price of solar photovoltaic panels in US dollars per watt from the year 2000 to 2022:
2000’s: prices continued to decrease, falling to around 5$ per watt.
2010-2022: There has been a steady decline in prices, reaching below 1$ per watt by 2022.
The first graph shows a clear trend: solar energy is rapidly increasing in capacity and becoming more economically viable. The substantial rise in installed solar capacity in key regions such as the US, UK and Europe clearly shows it as a possible solution to climate worries.
The second graph demonstrates a dramatic decrease in the cost of these panels. This decline has played a crucial role in making solar energy more accessible and cost effective. As the price per watt of solar panels has dropped, it has become much more accessible for both large-scale and small-scale installations, driving further adaptation towards solar technology.
Economic Impact
US: In 2023, the solar industry employed more than 263,000 Americans across more than 10,000 companies. Alongside this, the industry generated over $60 Billion of private investment in America.
UK: As of 2023, around 14,000 people are employed in the solar energy sector in the UK, of which London hosts 27% of these jobs. By 2030, the solar sector alone has the potential to contribute £25.5 billion in GBA to the UK economy, while also expecting a further £100 billion of private investment for the UK’s energy transition, according to the official government website. This could support up to 480,000 jobs throughout the country.
Europe: The number of people employed in the solar sector is expected to double by 2030, from 466,000 full-time employees in 2021 to more than 1 million. In many European countries such as Denmark and Spain, corporate solar sourcing has become a vital growth driver, with subsidy-free projects quickly developing and improving across the sector. It is tough to find exact figures for the EU, nevertheless, all factors mentioned above provide a clear picture of solar adaptation and private investment into the industry.
Industry Challenges
The large economic power the solar sector holds, including job creation and private investment, further proves its capabilities as a competent fossil fuel replacement strategy. However, this transition will require a large large shift in the mindset and values of many organisations. Oil alone makes up around 32% of the world’s total primary energy consumption, and 3.8% of the global economy. To add onto this, the investment into oil and gas is generally higher than renewables. Oil and gas boasts a larger market, and a much more established infrastructure. In 2024, the oil and gas industry saw global investments of $570 billion, as opposed to the $500 billion into solar powered investments.
And yet, the growing demand for solar energy across our three largest markets reflects a clear trend leaning towards cleaner, renewable sources of energy. There is massive economic potential with solar energy, and despite the dominance of the oil and gas industry, there is clear opportunity for expansion in the renewable sector. This shift is driven by the need to reduce greenhouse gas emissions, as the consequences of a consistent rise in emissions poses risks to the environment and all of its living organisms.
While the economic and environmental benefits of solar energy are evident, it is also important to consider the operational challenges faced by the industry, particularly those posed by weather-related factors.
Weather-Related Challenges
When planning large-scale solar projects, there are many challenges to consider. Weather-related challenges can greatly impact solar energy projects. Variability in solar radiation due to weather changes can affect energy production and grid stability. For example, cloud cover can reduce solar power generation by up to 20% in some regions, impacting the overall energy output and requiring power solutions, which can lead to an increase in unaccounted for operational costs. Unplanned downtimes due to weather conditions can lead to constant functionality problems, costing solar farms millions annually.
Use Cases of Weather Data in Solar Energy Projects
Midway Solar Project, Texas, USA (2019): A severe hailstorm in Pecos County damaged over 400,000 solar panels, resulting in insurance losses of approximately $70 million. This incident highlighted the vulnerability of solar farms to hail and spurred the industry to improve hardware reliability and risk mitigation strategies.
If OpenWeather’s Global Weather Alerts and Solar Radiation API’s had been integrated into the project, the site managers could have received timely alerts about the upcoming weather. This warning could have let the team take preventative measures, such as protective coverings over the panels, or temporarily shutting down operations to avoid damage. Furthermore, by applying detailed historical data, the project could have identified patterns and predicted the likelihood of such an event.
National Renewable Energy Laboratory (NREL), Colorado, USA (2017): The same can be said of using weather data for this case. In 2017, a severe hailstorm hit the Denver area, causing damage to properties and infrastructure. The NREL was also impacted by the storm, but despite the large hailstorm, NREL reported only one broken panel out of over 3,000 panels installed on its perimeter. This was due to a collaboration with the SunShot initiative, a pledge to make solar energy cost-competitive with other power forms. Due to this, panels undergo extensive testing to ensure they can withstand extreme weather conditions. This case highlights the value of quality assurance, and that solar energy systems can endure in the harshest of weather conditions.
By using OpenWeather data, NREL can improve upon its already existing proactive measures. For instance, the Solar Energy Prediction service could provide a form of risk assessment based on upcoming weather patterns, allowing NREl to adjust panel positions or activate additional safety protocols in time for extreme weather.
Northern Italy Hailstorm Incident (2022): In July 2022, northern Italy experienced severe hailstorms that caused significant damage to photovoltaic systems. Reports indicated that hailstones of up to 20 cm in diameter were responsible for damaging several solar installations. Studies done by the Vrije Universiteit Amsterdam showed that hailstones larger than 3 cm would have caused some damages if the panels were unprepared, let alone 20 cm wide stones. This incident shows the vulnerability of solar panels that were unprepared for extreme weather conditions, as opposed to the NREL example mentioned above.
Using OpenWeather data, solar project developers in northern Italy could have done more thorough site assessments. By identifying regions prone to hailstorms, developers could have chosen locations better suited for safe energy generation, or even implemented additional proactive measures from the start.
Enhancing Resilience with OpenWeather Solutions
To effectively plan against the cases mentioned above, OpenWeather data can be incorporated:
- The Solar Irradiance API provides detailed solar irradiation data.
- The Solar Radiation API offers current, forecast, and historical solar radiation data globally.
- Global Weather Alerts Notify about significant weather changes that could impact solar energy production.
- Solar Energy Prediction service accurately estimates the solar power generation, and determines the energy output of each photovoltaic panel.
These products have led to a significant increase in the number of OpenWeather Energy Irradiance API users. In fact, this number has increased by 115% from May 2023 to July 2024, with a consistent compound monthly growth rate of 5.65%. This increase represents the rising demand for solar data, and shows our value in this industry.
Solar Irradiance and Radiation Data
● OpenWeather’s Solar Irradiance and Energy Prediction service provides specific forecasts for solar energy production, considering key factors such as Global Horizontal Irradiance (GHI), Direct Normal Irradiance (DNI), and Diffuse Horizontal Irradiance (DHI).
● Advanced algorithms and models, such as the OpenWeather Clear Sky and Cloudy Sky models, enhance the accuracy of our data. This allows for significant improvements in the planning, installation, and maintenance of solar panels, ensuring optimal performance.
Solar Energy Prediction Service
- The Solar energy prediction service optimises solar energy generation with accurate historical, current, and forecast solar irradiance data, as well as precise solar panel output predictions. These accurate predictions generate cost savings and revenue, while also complying with sustainable and regulatory compliance, reducing environmental impact by lowering carbon emissions. All in all, this service is very valuable for companies looking to drive their efficiency, save costs, and experience sustainable growth.
Tailored Alerts
● Relevance to Solar Data: Tailored alerts provide localised notifications about weather conditions that could impact solar panel performance. For example, alerts about potential shading issues such as forecasted cloudy periods can help solar energy companies perform timely maintenance or adjustments to optimise energy production.
● Example: If a solar farm receives an alert about upcoming weather that might cause shading, they can schedule maintenance to trim nearby trees or adjust panel angles to maintain optimal exposure to sunlight.
Data
● Relevance to Solar Data By analysing weather data, solar energy companies can better understand how different weather patterns affect their energy production. This analysis helps in planning and making informed decisions to mitigate risks and optimise performance.
● Example Reports that show the impact of weather on energy production can help in designing more resilient systems that can bring long-term benefits.
Practical Preparation
● Relevance to Solar Data: Providing advice on how to prepare for severe weather events makes sure that solar-powered technologies are protected and can continue to function efficiently.
● Example: Guidance on creating emergency plans or identifying critical infrastructure at risk can help solar companies minimise damage done by things like hailtors, hurricanes, floods etc. and downtime during extreme weather events.
Building a Weather-Ready Future
Everything compiled in this report proves that the future of solar energy is undeniably bright, but it requires vast support from accurate and reliable weather data in order to navigate the challenges posed by weather variability and extreme weather. At OpenWeather, we are committed to providing the solar industry with the tools required to fully optimise energy production and protect investments.
Our solution space including our API offerings, global weather alerts and more are designed to offer these solutions. They help in making informed decisions regarding the installation, maintenance, and operation of solar panels. By using our advanced algorithms and models, solar energy companies can significantly reduce the downtime, enhance operational efficiency, and ensure reaching the maximum capacity of production. We truly believe in our products, and all we want is for the world to see a more sustainable future.
With our expertise in meteorology and weather data analysis, solar energy companies can confidently move forward, knowing they have a reliable partner to support their goals.
For more information or to start a trial of our services, we invite you to reach out to us and discover how we can help your solar efforts. Here’s to our gleaming collaborations, and we hope this report compelled you to shine with us in the future.