Global Solar PV Market Report

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.

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.