The US is the world’s fourth-largest solar electric market, behind Germany, Spain, and Japan, according to the Solar Energy Industries Association.
As with other power sources, demand for solar power is driven by residential, commercial, and industrial electricity demand, which increases with population and economic growth. Additionally, growing concern over environmental and geopolitical issues surrounding fossil fuels has boosted interest in renewable energy sources such as solar. Profitability is determined by government regulations and incentives, as well as technological factors. Large companies have an advantage in their ability to make heavy capital investments necessary to build solar power generation facilities. Small companies can compete by securing venture capital and utilizing government subsidies.