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Global Solar PV Market Report

Key Regional Markets


Solar PV Capacity


GDP (Current Prices) USD (2022)


GDP Growth Forecast (constant prices) (2023-2027)
Norwegian Krone
Country Credit Rating (S&P)


Renewable Energy capacity (2022)
Solar PV Share in Renewables (2022)


Renewable Energy Target
Targeting 2030 as its carbon-neutrality year

GDP Source: IMF WEO, S&P and IRENA

Norway has been expanding its renewable energy base over the years to achieve the ambitious target of carbon neutrality by 2050. The energy sector programs of the country are generally aimed at promoting renewable energy and increasing energy efficiency, resulting in almost entirely renewables-based electricity system, with renewable resources accounting for 98% of generation in 2020 itself. A low solar irradiation level and heavy reliance on an established hydropower market result in solar energy having a limited contribution to renewable energy generation. However, investments in the sector have recently gained momentum, especially in the residential and commercial sectors.


  • Increased support for residential PV installations through the implementation of rebate scheme
  • Ever-growing demand for rooftop solar segment, supported by boosted incentivized efforts by the government and strong manufacturing industry


  • A low solar irradiation level and heavy reliance on an established hydropower market result in solar energy having a limited contribution to renewable energy generation
  • Utility-scale solar segment remains somewhat underdeveloped and stagnating

Renewable Energy Mix

Source: IRENA Renewable Capacity Statistics April 2023
Norway’s renewable energy mix is dominated by hydropower, accounting for 82% of the energy mix, with wind power slowly gaining more importance. Although the solar industry is growing, it has accounted for only 1% of Norway’s renewable energy mix due to a less favourable environment. Various support measures have been included in Norway’s programmes for the implementation and expansion of solar energy in the future.

Installed Capacity: Status and Trend

Trend in Installed Solar PV Capacity

Trend in Installed Onshore Wind Capacity - Denmark

Source: IRENA Renewable Capacity Statistics April 2023

Installed solar capacity in Norway peaked at 321MW in 2022, adding 116MW of new capacity. A continuous growth trend can be observed since 2020, in which the country doubled its installed capacity.

Despite a dip in 2020 due to the Covid-19 outbreak, the solar market has proven its resiliency with a growing capacity, driven by electricity deficits and the need for local energy security.

Installation volume increased dramatically in 2022 due to exceptionally high electricity prices throughout the year. Additional government supports are also made available for the development of solar technology, materials, and solutions.

Demand Drivers

Norway, being one of the largest producers of oil and gas, relies heavily on the oil and gas sector for its economy and finances. However, the oil & gas sector is also one of the major sources of emissions and the government is continuously trying to find solutions to reduce and prevent greenhouse gas emissions. This is where renewable comes into play as it has a crucial role in reducing overall emissions. Renewable energy plays a crucial role in achieving emission reduction goals, and as a result, the government has implemented a range of regulatory measures to support renewable energy options.  It has also pledged to increase the carbon tax to $200 per tonne by 2030, with a yearly increase of 21%. However, despite all government support, the shift towards green energy would be gradual in Norway.

A national PV policy is being implemented to increase the solar potential in the region through its energy sector programs. It is possible for owners of small-scale PV installations to register as prosumers. Prosumers are not subject to the grid connection costs that power providers otherwise incur. It is possible to transfer surplus electricity to the grid at net retail electricity rates (i.e., excluding grid costs, taxes, and fees). A grid connection fee only applies if such installations exceed a limit of 100kW AC electric power feed-in to the grid, excluding own consumption.

To further boost the country’s solar market, Norway has increased support for residential PV installations by providing a rebate scheme. The public agency Enova SF increased the maximum PV system size eligible for rebates from 15kW to

20kW and the maximum subsidy amount from NOK1,250 to 2,000 ($226.7) per kW installed. Additionally, the Norwegian government has opened a public consultation for renewable energy systems, including solar, to be exempted from paying grid rent, VAT, and electricity tax.

The three segments of the Norwegian solar PV value chain, downstream national, downstream international and upstream segments are closely interconnected, and knowledge creation and utilisation for experimenting with new or improved solutions is generally strong. Additionally, collaborations between customers and suppliers have been proven to be vital across segments, thereby creating synergy for unlocking new solar development.

Solar energy auction is still an uncharted territory for the country. Solar energy harvesting at the residential level is growing in Norway, but utility-scale installations remain somewhat underdeveloped. Wind and hydropower have been the preferred technologies for PPAs in the country, but solar is still not considered to be the ideal technology for making PPA agreements. Though solar energy has a limited market in the country, Norwegian solar energy developers are increasingly trying to promote and rationalize PPAs within the country and abroad. Norwegian solar developers are expanding the solar market across nations by pairing up with international entities to build international projects.

Market Opportunity

Although the utility-scale solar segment is somewhat stagnating, the demand for rooftop solar segment is ever- growing, supported by boosted incentives from the Norwegian government and strong manufacturing industry. This segment in particular offers attractive investment opportunities.

As part of their efforts to increase solar efficiency in the region, Norwegian developers look for new opportunities to manufacture the latest technologies. REC Solar produces solar silicon using a metallurgical purification method rather than the traditional chemical route to polysilicon based on the Siemens process. NorSun manufactures high-performance monocrystalline silicon wafers with an annual production capacity of 1GW. Research Council of Norway (RCN) and Innovation Norway support investments in solar energy systems pertaining to agriculture, floating solar panels, solar cells, silicon ingots, wafers, and solar panels. Over its duration (2017-2025), the center will spend NOK240 million (USD24 million). In the coming years, Norway is poised to become an important hub for solar technological research and production thereby opening new avenues for investments in the country.

Floating solar provides enormous potential in the sector and offers attractive investment opportunities. It can generate power from coastlines and hydropower reservoirs, freeing up land for other uses. With its expertise and experience in the maritime, offshore, and energy sectors, Norway is ideally positioned to drive technological advancement in this field. Norway’s Ocean Sun is one of the companies that specializes  in floating solar. The company has developed a patented new technology inspired by the aquaculture industry and will be delivering a floating solar plant for Statkraft’s Banja reservoir in Albania.

Norway is actively involved in research efforts aimed at advancing energy storage technology. One of the areas of focus is phase change materials (PCMs) as part of a heat storage system, often referred to as a bio-battery. The ZEB laboratory,  operated by the Norwegian University of Science and Technology (NTNU) and SINTEF in Trondheim, uses the latest technological advancement of bio-batteries. Solar energy from the laboratory’s solar panels is stored as heat in the bio-battery and can be used to heat the building, especially during the winter.


Source: BNEF Global PV Market Outlook
Note: The above data, as sourced from BNEF, are based on a ‘low’ investment scenario

A primary factor for solar adoption in Norway is its affordability and diverse applicability, since hydropower plants are capital-intensive to build. 

Furthermore, hydropower alone cannot meet the soaring demand for electricity during winter, causing the country to turn to fossil fuels to meet electricity needs. Therefore, it is evident that the country’s untapped solar potential will be crucial going forward to attain energy security and reduce carbon emissions.

Rooftop solar continues to be a preferred option, supported by favourable government initiatives. On the other hand, the utility-scale solar segment has not been able to gain traction in the country due to the lack of supportive regulatory policies and mechanisms. However, this segment is poised to grow further to meet increasing electricity demand, rising from the emergence of energy-intensive businesses, such as data centres. Moreover, due to Norway’s geography and concentration of population in cities in the south, the country requires significant investments in new generation sources and grid expansions to eliminate   network congestion problems, which would also reduce the large electricity price differences between regions.

Rising PV system efficiency, growing social acceptance of solar, and regulatory changes for new zero-emissions buildings will turn out to be the driving forces behind future solar expansion. According to data from Germany-based EUPD Research, between 2023 and 2026, the country could add 285MW of residential capacity, 360MW of commercial arrays, and 640MW of large-scale projects.