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Europe Net Metering and Self-Consumption Solar PV Market Grew 18.2 Percent in 2017

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/30rd April 2018, RENEWABLE MARKET WATCHTM/ Today, renewable energy sources (RES) have become a major contributor to the energy transition occurring in Europe. The speed at which renewable energy has grown since 2010 took many market actors by surprise, especially within the power sector. In 2017, renewable energy accounted for the majority (85 %) of new EU generating capacity for the tenth consecutive year. While fossil fuel capacity needs to be decommissioned at a faster rate to ensure that the EU avoids stranded assets or a lock-in of carbon-intensive power plants by 2030 (EEA, 2016c), the rate of replacement of carbon-intensive energy sources by RES to date has already resulted in GHG emissions reductions in the EU electricity sector, in the consumption of energy for heating and cooling, and in transport.

There is clear trend solar photovoltaic (PV) sector’s growth in Europe is moving towards self‑consumption and net metering

Investment in solar photovoltaic (PV) power capacity is growing in Europe, and, although utility-scale solar photovoltaic (PV) power plants with capacity above 1 MW continue to dominate the market, distributed solar is also growing rapidly. There is clear trend solar photovoltaic (PV) sector’s growth in Europe is moving towards self‑consumption and net metering according to recently published report Europe Net Metering and Self-Consumption Solar PV Market Outlook 2017 - 2026. According industry analysts of Renewable Market Watch™, this trend may be expected to continue, as the EU administration is working to establish new more effective business and regulatory framework to stimulate distributed solar photovoltaic (PV) and other decentralized renewable energy sources. Electric vehicles are an essential part of a clean energy future and supported by clean electricity such as solar photovoltaic (PV) power, their impact on carbon emission reduction can grow even more. As electric vehicles plug in to the grid at night, they increase usage. This in turn can encourage home owners and utilities to add more solar powered charge-in capacity to the grid and solar photovoltaic (PV) power may have prevailing part over other renewable energy sources (RES).

European net metering and self-consumption solar photovoltaic (PV) capacity grew by 18.2 percent in 2017 compared to 2016

Prosumers generating and consuming electricity under net metering and self-consumption support schemes shall play an important role in future electricity networks. According to the European Commission’s forecasts, renewables will cover around 45% of our electricity demand by 2030 and their share is expected to grow to 60% ÷ 97% by 2050. The strong run for solar photovoltaic (PV) capacity additions through net metering and self-consumption support schemes continued in 2017. Thus European net metering and self-consumption solar photovoltaic (PV) capacity grew by 18.2 percent in 2017 compared to 2016, reveals Europe Net Metering and Self-Consumption Solar PV Market Outlook 2017 - 2026. This represents a major opportunity to establish a clean, secure and resilient energy system on which European economy can grow.

Net metering and self-consumption solar photovoltaic (PV) should become part of the utility business model

During 2017 research team of Renewable Market Watch™ registered more companies (solar PV equipment manufacturers and EPC contractors) in Europe shifted their focus on distributed generation due to increased price pressure in the utility-scale segment. Europe net metering and self-consumption solar photovoltaic (PV) market needs further development of solutions for innovative system-integration and power-management for households and buildings including energy storage, particularly addressing the impact of self-consumption on the operation of the grid and the value of solar photovoltaic (PV) electricity when aggregated and offered to the wholesale power market. Net metering and self-consumption solar photovoltaic (PV) should become part of the utility business model and the utilities should be involved in the process of designing, installing, and maintaining solar photovoltaic (PV) systems for residential and commercial projects. Growth of net metering and self-consumption solar photovoltaic (PV) market in Europe will lead also to increasing in demand for solutions and services due to advances in technology in components, such as smart power meters, solar simulators, and grid intelligent components, services and applications of the smart solar technology concept. Thus most of the vendors are focusing on providing complete solutions for smart solar from components to the services.

During 2017 more companies in Europe shifted their focus on distributed generation due to increased price pressure in the utility-scale segment.

Industry analysts of Renewable Market Watch™ used a complex array of research sources to better understand role of net metering and self-consumption solar photovoltaic (PV) systems and their application in European countries under different local regulations and support schemes. For this reason unique approach was applied in segmentation process to achieve and present better explanation of fundamental drivers and future dynamics behind the net metering and self-consumption solar PV market growth in Europe. Market was analyzed in the very details from eight main perspectives:

1) Policy and Regulation. Support Schemes at Europe-wide and Country Level;
2) Turn-key Solar Photovoltaic (PV) System Cost;
3) Levelized Cost of Energy (LCOE) for Small Scale Residential and Commercial Solar Photovoltaic (PV)  Systems;
4) Energy Storage Technologies and Solutions Development;
5) Market Trends and Investment Volume in Net Metering and Self-consumption Solar Photovoltaic (PV);
6) Energy Market and Electricity Grid Network. Transmission System Operators and Utilities;
7) Smart Grid Technologies Development;
8) Electric Vehicles and Charging Infrastructure Development

There are four key drivers behind the continuing net-metering and self-consumption solar photovoltaic (PV) market growth in Europe, which is expected in the next decade. First one is reduction and removing of feed-in tariffs in many countries. Therefore feed-in tariffs started to lose their power as driver of renewable energy growth since 2011 and this process will continue. The second one is grid parity, which is progressing and by 2026 not only sun-belt countries, but also a lot of countries with less solar irradiation will have grid parity. The third one is growth of the smart grid concept, market and services, which make it easier to integrate renewable energy systems for net-metering and self-consumption. The fourth one is growth of electric vehicles and related energy storage and charging infrastructure in Europe.

Incentivized self-consumption and net metering programs are becoming increasingly important policy supports for global solar photovoltaic (PV) markets and especially in Europe

Obviously incentivized self-consumption and net metering programs are becoming increasingly important policy supports for global solar photovoltaic (PV) markets and especially in Europe. To address the wide range of challenges associated with operating the electricity system of the future with more participation of prosumers, the leading Transmission system operators (TSOs) and Distribution System Operators (DSOs), manufacturers and research institutions in the EU combine their efforts to plan, design and demonstrate a technical architecture and commercial framework that would enable distributed net metering and self-consumption solar  photovoltaic  installations to become the solution for the future cost efficient, secure and sustainable EU electricity supply system.

The rise in the number of prosumers has been facilitated by the fall in the cost of renewable energy technologies, especially solar PV modules (panels) ...

Various types of prosumers exist: residential prosumers who produce electricity at home–mainly Through solar photovoltaic panels on their rooftops, citizen-led energy cooperatives or housing associations, commercial prosumers whose main business activity is not electricity production, and public institutions like schools or hospitals. The rise in the number of prosumers according to Europe Net Metering and Self-Consumption Solar PV Market Outlook 2017 - 2026 has been facilitated by the fall in the cost of renewable energy technologies, especially solar PV modules (panels), which in some Member States produce electricity at a cost that is the same or lower than retail prices.

The independent, 230+ page report of Renewable Market Watch™, Europe Net Metering and Self-Consumption Solar PV Market Outlook 2017 - 2026 analyzes the net metering and self-consumption supporting schemes for solar photovoltaic (PV) in all European countries. Through extensive research and discussions with experts in the industry, Renewable Market Watch™ has identified a series of market trends that will impact investment volume and solar photovoltaic (PV) capacity additions under net metering and self-consumption support schemes over the coming decade in Europe.

With over 170 charts, maps and tables, together with policy and support schemes overview in 44 countries, competitive landscape and smart grid development investigated, the report Europe Net Metering and Self-Consumption Solar PV Market Outlook 2017 - 2026 gives you a perfect visual breakdown of European net metering and self-consumption solar photovoltaic (PV) market.

More information about Europe Net Metering and Self-Consumption Solar Photovoltaic (PV) Market you may read here: Europe Net Metering and Self-Consumption Solar PV Market Outlook 2017 - 2026

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