Solar Tracker Market Trends

Market Driver - Growing Emphasis on Clean and Green Energy Solutions

With rising concerns about climate change and increasing environmental pollution levels globally, there is a growing emphasis on adopting clean and green sources of energy. Solar energy has emerged as one of the most viable and sustainable alternatives to conventional power sources like coal and natural gas.

Solar trackers help address this issue by automatically tracking the sun's movement across the sky and adjusting the panel orientation. This allows the panels to generate maximum energy from the available sunlight throughout the day. As a result, solar trackers provide about 25-30% higher energy yields compared to fixed-tilt ground systems.

Leading tracker suppliers have also ramped up manufacturing and are offering a wider range of attractive product solutions. Countries are stepping up ambitions to transition to greener sources of energy in line with their decarbonization goals. Consequently, the solar trackers market is likely to grow substantially in the coming years.

Market Driver - Increased Solar Panel Installations Globally, Driven by Favorable Government Regulations

Favorable public policy frameworks have played a key role in accelerating the global adoption of solar energy in recent times. Many national and local governments have introduced various incentives and regulatory mandates to encourage the deployment of solar power. These include tax exemptions and credits, rebate programs, generation-based incentives, mandatory quotas for procuring renewable energy, net metering provisions and subsidized financing.

Some ambitious markets have also set long-term renewable capacity or carbon reduction targets to provide regulatory certainty to investors. As a result, the overall solar energy market has witnessed high double-digit annual growth rates over the last decade.

This expanding solar tracker market has directly benefited solar tracker suppliers. Single-axis and dual-axis trackers especially have seen rising prominence as they offer 20-30% more energy yields compared to fixed systems. Tracker manufacturers have been quick to cater to this demand. Their trackers are now available in various scalable formats for projects of any size. Many suppliers have established a localized manufacturing and supply chain presence in key growth markets.

Market Challenge - High Maintenance and Operational Costs for Dual-Axis Trackers

One of the major challenges currently being faced in the solar tracker market is the high maintenance and operational costs associated with dual-axis trackers. Dual-axis trackers offer significantly higher energy yields compared to fixed-tilt or single-axis trackers. However, their complex design with multiple moving parts also means higher costs of installation, operation and maintenance over the lifespan of the system.

Additionally, issues like stalling or jamming of parts is more common in dual-axis trackers compared to simpler trackers. All these factors contribute to increased overall costs. Repairs and unexpected downtime further increase maintenance expenditures. High costs have limited the widespread adoption of dual-axis trackers, especially in price-sensitive markets.

Unless costs are brought down substantially, high maintenance and operation expenditures will continue restricting the growth potential of dual-axis solar trackers globally.

Market Opportunity - Technological Advancements in Solar Tracker Designs, Boosting Efficiency

One major opportunity in the solar tracker market is presented by ongoing technological advancements that aim to enhance the efficiency and functionality of tracker systems, while reducing costs. Tracker manufacturers are developing new designs that utilize lighter materials, require fewer moving parts, and simplify control mechanisms. This helps lower installation and servicing requirements.

Advanced control algorithms further optimize energy yields. New drive technologies like direct drives are also gaining traction due to their reduced part counts and maintenance needs. Such innovations will enhance the cost-competitiveness of complex dual-axis trackers.

Additionally, hybrid tracker designs that combine features of single-axis and dual-axis models promise efficiency close to dual-axis while cutting costs. Widespread adoption of such advanced tracker solutions boost overall solar power plant profits and internal rates of return, driving greater uptake of solar trackers technology globally.