Fading light: The withdrawal of government subsidisation is anticipated to affect revenue

Operators in the Solar Panel Installation industry install, maintain and certify small-scale household photovoltaic (PV) systems, which are more commonly referred to as solar panels. Over the past five years, all state and territory governments have provided feed-in tariffs for households, which has encouraged the uptake of solar panels. However, reductions in subsidies and feed-in tariffs have reduced the economic value of solar panels, leading to a slower rate of annual installations over the period.Industry revenue has fluctuated significantly over the past five years, as households have rushed to install systems ahead of changes to subsidies. This trend has resulted in peaks and troughs in industry activity. Industry revenue is expected to rise at an annualised 3.4%...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 15-20
3.4%
Forecast Growth 20-25
x.x%lock
Profit
x.x%lock
Employment
6,050
Businesses
4,617
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Industry revenue has fluctuated significantly ahead of changes to subsidies
  • Industry revenue has been volatile due to fluctuations in solar panel uptake
  • Industry subsidisation is anticipated to wane, leaving solar technology to compete on its own merits

    • shopping_cartPURCHASE OPTIONS Whats in this report faqs Download Sample
    IBISWorld client - ADP Watch Testimonial
    ... DigiCert Seal

    Industry Report - Industry Investment Chapter

    A low level of capital intensity characterises the Solar Panel Installation industry. For every dollar spent on wages in 2019-20, an estimated $0.11 will be spent on capital costs. Highly trained and skilled staff are required to install solar panels, and most of these projects are also time intensive. This high labour-to-capital ratio is characteristic of many service-based industries.Wages account for a significant share of industry revenue, indicating that technical knowledge and ability are of paramount importance. In contrast, depreciation costs only account for a small share of industry revenue. Depreciation costs are incurred on vehicles, machinery and other equipment, as these assets decline in value over time. The...purchase to read more.

    Additional Insights for the Solar Panel Installation Industry

    IBISWorld has determined the most important Key Success Factors for the Solar Panel Installation are:

  • Optimum capacity utilisation
  • Access to the latest available and most efficient technology and techniques
  • Having a good reputation

    • IBISWorld analysts also discuss how external factors such as Number of households and Real household discretionary income in the Solar Panel Installation industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    Look under the hood?

    Download a FREE sample report

    Download Sample

    Top 500 Companies List
    has been released

    Click here for more

    What's in this report

    Industry Products

    What is the Solar Panel Installation Industry?

    Industry companies install small-scale photovoltaic solar panels, and provide repair and maintenance services on existing solar panels. Companies that install large-scale commercial solar panels are excluded from the industry.

    Industry Products
  • Systems up to 9.5 kilowatts
  • Systems from 9.5 to 25 kilowatts
  • Systems from 25 to 100 kilowatts
    • Industry Activities
  • Household solar panel installation
  • Solar panel repair and maintenance
  • Accredited power grid connection
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Number of households
  • Real household discretionary income
  • Trade-weighted index
  • Electricity service price
  • Public concern over environmental issues

    • Current Performance
  • Industry dynamics
  • Revenue volatility
  • Market maturity
  • The rationale

    behind subsidies

  • Chart: Revenue Growth

    • Industry Outlook
  • Solar uptake
  • Subsidies decline
  • Price-based adoption
  • Table: Solar Panel Installation Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Solar Panel Installation Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • House Construction
  • Consumers

    • Key Selling Industries
  • Electric Cable and Wire Manufacturing
  • Hardware Wholesaling
  • Power Automation Products and Other Electrical Equipment Manufacturing
  • Telecommunications and Other Electrical Goods Wholesaling

    • Products & Services
  • Systems up to 9.5 kilowatts
  • Systems from 25 to 100 kilowatts
  • Systems from 9.5 to 25 kilowatts
  • Chart: Solar Panel Installation Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Zone three households
  • Zone two households
  • Zone four households
  • Zone one households
  • Chart: Major Market Segmentation for the Solar Panel Installation Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Solar Panel Installation

    • Basis of Competition
  • Internal competition
  • External competition

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Solar Panel Installation Industry

    • Industry Globalization

    Major Companies

    There are no major players in this industry. This report includes analysis of other companies.

    Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Solar Panel Installation Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

    • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Solar Panel Installation Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Crystalline Silicon
  • The form of silicon used to manufacture solar cells.
    • Feed-In Tariff
  • A guaranteed payment to solar-powered households for electricity that is produced at a certain rate, typically higher than the market rate.
    • Off-Grid
  • A solar power system constructed in a closed unit that does not feed back into the utility grid.
    • Photovoltaics (Pv)
  • A process where solar radiation is converted to electric power.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Solar Panel Installation market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Solar Panel Installation:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Solar Panel Installation market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Solar Panel Installation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Join IBISWorld today

    Become a Member shopping_cartPURCHASE OPTIONS

    Contact Us

    Want to speak to a representative? Call us.

    phone +61 3 9655 3800    OR     Enquire Here
    clear