Solar Energy




Solar energy refers to the harnessing of the sun's radiant light and heat for electricity generation or thermal applications. It is a cornerstone of clean energy strategies, with photovoltaic (PV) and concentrated solar power (CSP) as the primary technologies. Globally, solar PV capacity surpassed 1.5 TW in 2024, making it the fastest-growing renewable energy source.

Solar's appeal lies in its scalability — from residential rooftops to multi-gigawatt utility-scale plants — and in its rapidly falling levelized cost of energy (LCOE), which in sunny regions is now lower than fossil fuels. However, its supply chain is highly concentrated in China, making it geopolitically sensitive for energy autonomy initiatives.

Strategic Importance

Solar energy is now a national energy security priority for many countries, both for decarbonization and for reducing dependency on imported fossil fuels. For industrial electrification, pairing solar with BESS + microgrids provides resilience against grid instability — especially critical for EV gigafactories, semiconductor fabs, and AI data centers.

China Dominance

China currently accounts for over 80% of global solar panel (PV module) manufacturing capacity — and for some upstream stages of the supply chain (like wafers) the share is closer to 97%. That means 4 out of every 5 solar panels installed worldwide are made in China, either fully or with Chinese wafers/cells inside, even if final assembly happens elsewhere.

  • Polysilicon: ~79% from China
  • Ingot & Wafer: ~97% from China
  • Cell: ~86% from China
  • Module (Panel): ~80% from China

Solar vs Wind

Solar energy is the "digital tech" of renewables — modular, mass-manufactured, globally traded, and on a predictable cost-down path. PV cells benefit from global semiconductor/manufacturing economies of scale, few moving parts, fast deployments, and cheap maintenance.

Wind, by contrast, is more like civil engineering: bespoke, location-specific, and constrained by physical scale and material inputs. Wind energy won't vanish, but its role will evolve toward gap-filling, utility-scale, coastal energy supply, and diversification rather than being the dominant growth engine like solar.

Solar Tech Stack


1. Photovoltaic (PV) Modules


  • Monocrystalline Silicon (most efficient, dominant for utility and rooftop)
  • Polycrystalline Silicon (lower cost, declining market share)
  • Thin-Film (CdTe, CIGS, a niche for lightweight and low-light conditions)
  • Bifacial Modules (capture light from both sides)
  • Perovskite & Tandem Cells (emerging, potentially >30% efficiency)

2. Balance of System (BoS)


  • Inverters (string, central, microinverters)
  • Transformers (step-up for grid connection)
  • Mounting Structures (fixed tilt, single-axis trackers, dual-axis trackers)
  • Wiring & Combiner Boxes
  • Monitoring & Control Systems (SCADA, smart inverters)

3. Integtation Layer


  • Battery Energy Storage Systems (BESS) (Li-ion, LFP, flow batteries)
  • Microgrid Controllers (for islanding/resilience)
  • Hybrid Systems (solar + wind, solar + CHP, solar + hydrogen production)

Supply Chain Constraints

  • Polysilicon Bottlenecks - High CAPEX and energy intensity. Build domestic plants (U.S., EU), diversify to SE Asia.
  • Inverter Shortages - Semiconductor chip supply chain issues. Strategic inventory, multiple suppliers.
  • Logistics Costs - Heavy modules, long-distance shipping Localized manufacturing, on-site assembly.
  • Regulatory Delays - Permitting, grid interconnection. Streamlined permitting, digitalized grid planning.

Emerging Trends

  • Perovskite-silicon tandem modules hitting pilot production lines (Oxford PV, LONGi).
  • Solar + storage as default for new utility-scale projects.
  • Agrivoltaics as a land-use and political win.
  • Floating solar for hydropower dam retrofits.
  • Vertical solar facades in urban environments.

Software Solutions