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Is it good to invest in the solar energy market in Sweden?

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As compared to other European countries such as Germany, Spain, or Italy, Sweden is lagging in the solar energy market. In 2019, around 1.5 GW of solar power capacity was installed in Sweden which is relatively low compared to other EU countries.

Sweden is focused strongly on renewable energy with a set target of carbon neutrality by 2045. The only issue is the limited short summer days due to the country’s northern latitude position and the potential of solar energy production is reduced. However, the country is equipped with a large hydroelectric power capacity to compensate for the lack of solar energy.

Nevertheless, the solar energy market is growing. An increase of solar power capacity by 45% was announced by the Swedish Energy Agency (SEA) with the new installation of 880 MW.

As compared to other Scandinavian countries also, Sweden’s solar energy market is relatively small. Denmark is one of the leading countries in Scandinavian countries for solar energy production. Around 2.5 GW of solar power, capacity was installed in Denmark, representing the strong focus on renewable energy including solar with a target set of 355 of electricity from solar power by 2025.

Norway is also one of the significant solar energy markets. According to Norwegian Water Resources and Energy Directorate, the country installed a solar power capacity of around 1GW in 2019. Norway is also focused on renewable energy such as solar with a set target of 67.5 TWh of electricity from solar power by 2030.

The top 5 cons of the solar energy market in Sweden are:-

  1. High initial costs: The cost of installing a solar energy system is high, hence it is difficult for individuals or businesses to quickly switch to the solar energy system.
  2. Weather dependent: The solar energy system efficiency is dependent on weather conditions and the output factors are affected by cloud cover and storms.
  3. Limited energy storage capacity: The technology for large-scale energy storage is not fully developed with limiting factors for the growth of the solar energy market in Sweden.
  4. Limited geographical availability: Solar energy is widely available but limited in certain areas or climates such as very cloudy or cold regions.
  5. Intermittency: Solar energy is an intermittent source of energy, without proper energy storage solutions, it is not possible to use it at night time or during long periods of cloudy weather. Hence it is more difficult to rely on solar energy as the primary source of power.

Overall the market of Sweden shows that solar energy market penetration is smaller compared to its other renewable energy sources such as hydro and wind power. Despite this, several initiatives are been carried out to increase solar energy use with a high number of solar panels per capita.

Some of the notable Solar energy companies in Sweden providing solar panels, installation, and maintenance services are:-

  1. SolTech Energy: A Swedish company developing and manufacturing solar energy products such as solar panels, solar collectors, and solar cell modules.
  2. Solarclarity: A Swedish company focused on providing solar energy solutions for commercial and industrial customers.
  3. Vattenfall: A Swedish state-owned company, is one of the largest producers of renewable energy in the country with a focus on solar energy.  
  4. Scatec Solar: A Norwegian company developing, building, owning, operating, and maintaining solar power plants. The company got a strong presence in Sweden and other Scandinavian countries.
  5. OX2: A Swedish company developing, building, and operating wind and solar power plants in Northern Europe.
  6. E.ON: A German multinational company with a strong presence in the Sweden market providing energy solutions.

Some of the notable research institutes in Sweden researching solar energy and other technologies are:-

  1. KTH Royal Institute of Technology: It conducts research on solar energy and energy systems with a focus on photovoltaics, solar thermal energy, and energy storage.
  2. Chalmers University of Technology: It conducts research on solar energy with a focus on photovoltaics, solar thermal energy, and energy storage.
  3. Linköping University: It conducts research on solar energy and energy systems with a focus on photovoltaics, solar thermal energy, and energy storage.
  4. Swedish National Testing and Research Institute: Research conducted on solar energy, with a focus on photovoltaics and solar thermal energy.
  5. Swedish Energy Agency (SEA): A Governmental agency conducting research on solar energy and providing enough funding and support for solar energy projects in Sweden.

The research institutes are also in partnership with various companies and organizations from the solar energy industry such as solar panel manufacturers, energy utilities, construction and engineering companies, Energy storage companies, research and development companies, and Government agencies.

Source: Mordor Intelligence, Globaldata, PV magazine, sweden.se, Blackridge

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