Distributed Energy Generation Market Size, Share & Trends Analysis growing at a CAGR of 11.8% from 2020 to 2027

Moreover, various benefits of DEG over conventional energy generation methods are expected to fuel the market growth. The U.S. market is anticipated to witness significant growth from 2020 to 2027. The deployment of DEG technologies has increased since 2014 owing to the adoption of supportive government policies, such as Production Tax Credit (PTC) that provides a per-kilowatt-hour tax credit for the electricity generated by DEG resource and Investment Tax Credit (ITC) that allows the tax credit to be taken based on the amount invested instead of the electricity produced.

Growing awareness about clean sources of energy is expected to enhance the demand for DEG systems. Moreover, DEG systems are cheaper than conventional power generation methods. Hence, the demand for a clean source of energy coupled with the economical costing of the product is estimated to have a positive influence on the market growth over the projection period.

Current development in regulatory policies across North America has resulted in the progress of the overall market. Factors including provincial renewable energy policy improvement in Canada, and successful implementation of energy auctions in Mexico, are resulting in a bigger deployment rate of DEG technologies in the region. Rising usage of solar PV rooftop arrangements for commercial and residential applications is assessed to be one of the vital trends that are boosting industry growth.

The COVID-19 pandemic has enormously stuck the Chinese economy with various other trade commotions. China, being one of the largest exporters of DEG goods, has observed an immense decline in the trading sector, due to lockdowns imposed in several parts of the countries. This is likely to affect the industry as the companies are pulling out of new investments and the government is cutting down the subsidies.

Distributed Energy Generation Market Trends

The basic characteristic of distribution energy of being a flexible technology i.e., the ability of the technology of onsite generation of electricity is the key element driving the market. This technology enables the generation of electricity in any location like at home, business, or industrial site. Distribution energy is environmentally friendly, cost-effective, and provides higher power quality. In addition, it is a more reliable energy solution than conventional energy sources such as oil, gas, and coal.

The availability of electricity in remote areas is still a major concern for many nations across the globe. The economic development of already developed or developing area outpaces the expansion of electricity supply in remote areas and with other regions facing the unavailability of energy due to the constraints on the ability to deliver power where and when it is needed. It has hence necessitated enabling local options for electricity transmission. This has thus provided great opportunities for the adoption of distributed energy generation systems.

Distributed Energy Generation Market Report Scope