Poland Solar Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Poland Solar Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Poland Solar Energy Market is expected to reach 13 GW by the end of this year and is projected to register a CAGR of more than 15% during the forecast period.

The COVID-19 pandemic negatively impacted the market in 2020. Presently, the market has now reached pre-pandemic levels.

Key Highlights

• Over the medium term, favourable government policies are expected to stimulate Poland's solar energy market growth. Further, the increasing investments and the upcoming solar energy projects are also expected to drive the growth of the market studied.
• On the other hand, the growing adoption of alternative clean energy sectors is expected to depreciate the market growth.
• Nevertheless, the advancing solar technology and private player investment are likely to provide ample opportunities to the Poland solar energy market in the coming future.

Key Market TrendsFavorable Government Policies And Initiatives To Drive the Market

• Poland has become one of Europe's largest solar PV investment markets. According to the Polish grid operator - Polskie Sieci Elektroenergetyczne (PSE), in 2021 alone, more than 3.7 GW of new solar PV additions were made in the country. With this, the total installed solar PV capacity was recorded at 7.67 GW in 2021. Further, according to the Institute for Renewable Energy (IEO), the country's solar PV capacity is expected to reach 12 GW by the end of 2022.
• The growth of the solar energy sector has been fueled primarily by supportive government policies at both the country and European Union levels, which have benefited both prosumers and utility-scale solar power plant owners. The Polish solar energy market is dominated by prosumers that numbered nearly 1 million. It accounted for more than 50% of the total installed solar capacity.
• The Polish government has introduced several incentive schemes to install and generate solar power for systems of all capacity ranges. The country has a Contract for Difference (CfD) system based on a difference between the market price and reference price agreed upon in an auction. Auctions are organized by the Polish government, allocating a budget, deciding on technologies allowed to bid and sizes of installations, and determining a budget per basket.
• To further incentivize the adoption of solar energy, in 2021, the Polish government extended the auction system for another six years (2022-2027). It has also introduced a "net-billing" system, replacing the older net-metering system for consumers.
• Further, in August 2021, the government amended the Renewable Energy Act and extended feed-in tariff (FIT) schemes for renewable energy installations. According to the act, renewable energy installations up to 10 kW (micro-installations) will be supported with the FITs of 0.75 PLN/kWh for Solar energy micro-installations up to 3 kW and FITs of 0.65 PLN/kWh for micro-installations between 3 and 10 kW. The FITs apply for 15 years, counting from the date of putting the installations into service; however, no longer than until December 2035 for solar energy installations.
• Hence, such government policies and incentives are expected to accelerate the growth of Poland's solar energy market during the forecast period.

Residential End-User Segment To Witness Significant Growth

• The residential end-user segment is expected to see considerable growth during the forecast period, owing to the increased government support and the declining cost of solar PV in the residential sector.
• The solar energy system in the residential sector is composed of rooftop solar PV systems used in households, in most cases in conjunction with the energy storage system (ESS) systems. The primary investment in residential solar PV systems is the cost of solar modules and related hardware such as an inverter, metering equipment, and other components.
• The solar energy industry in Poland is developing at every level, from smaller, privately-owned rooftop PV systems and commercial rooftop systems to large free-standing installations. According to the Polish Society for Photovoltaics, the number of registered small-scale systems (below 50 kW) with an average capacity of 6.5 kilowatts (kW) grew from 460,000 (3 GW) at the end of 2020 to about 845,00 (6 GW) at the end of 2021. These small-scale systems account for 80% of the total PV power installed in Poland.
• Further, in April 2022, the government announced the fourth edition of the My Electricity program. Under which the government focuses on the need to increase the self-consumption of energy produced from solar PV installations, for which the funding will be provided not only for photovoltaic installations but also for energy storage facilities and systems for managing this energy. According to Poland Renewable Energy Association, the maximum co-financing for micro-installations and energy storage can reach over PLN 20,000. These initiatives are expected to boost the residential solar energy market growth during the forecast period.
• Moreover, the rising price of CO2 emissions permits, which in 2021 approached an astronomical level of EUR 80 per tonne, has led to rising electricity bills for individual consumers. Therefore, a solar PV installation in the home solved this problem, allowing investments to be recouped in as little as six years.
• In 2021, Poland's residential sector consumed over 32% of the nation's electricity; hence, using solar PV technology would significantly help reduce the country's overdependence on coal, reducing greenhouse gas emissions.
• Therefore, owing to the above-mentioned factors, the residential solar energy segment is expected to grow considerably during the forecast period.

Competitive Landscape

The Poland solar energy market is partially fragmented. Some of the major players in the market (in no particular order) include R. Power Sp. Z O.o., Baywa Ag, Engie S.A., Sun Investment Group, and Green Genius Sp. Z O.o.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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