News from FTC Solar

Market for solar trackers expected to see a 45% increase in installations from 2020-2025

The worldwide tracker market will see a 45% increase between now and 2025, according to the market research firm Wood Mackenzie [ link to executive summary ] . The global tracker market broke 30 GW in 2019 has been growing at a fast year-over-year clip of 62%. While the coronavirus has inflicted( delays on smaller solar projects, the market for utility-scale solar continues to be robust. In Q2 of 2020, 71% of projects were focused on utility-scale solar, according to the Solar Energy Industries Association (SEIA).

Wood Mackenzie says that after North America, the Middle East and Africa will post the strongest growth in the next five years, followed by Latin America.

The tracker market is expected to peak at $3.3 billion in 2025. But, while tracker installations are expected to surge in the next few years, revenues may lag due to a continuing decline in solar prices. In response to price competition, manufacturers are differentiating themselves by offering software and other types of services. Meanwhile, tracker vendors are working on technology improvements that will not only maximize energy yields but will also lower capital costs for their customers.

As tracker technology evolves, trackers are now being considered for more challenging terrain, according to Wood Mackenzie. While previously trackers were primarily located on flat, square land, they are now a viable option for more rugged sites. Solar developers in the U.S. are also beginning to consider trackers for smaller projects under 5 MW, and for new configurations including agrivoltaics, carports and C&I ground-mounted systems.

Also while trackers are generally more expensive than fixed-tilt ground mount systems, the Average Selling Price (ASP) has fallen 38% in the last five years, making tracking systems an attractive option for a wider variety of projects.