As the excessive consumption of fossil fuels has led to their depletion and degradation of the environment, the focus is now shifting towards alternative sources for producing power. The energy demand is not likely to decrease during the foreseeable future and hence, it has become necessary to opt for clean sources for meeting the demand of the swiftly growing population all across the globe. If continued, the utilization of fossil fuels for generating can cause irreparable damage to the environment. In addition to this, the pollution levels are already skyrocketing across the globe.

It is because of all these factors that the global renewable energy market is predicted to witness substantial growth in the coming years. While before the cost of renewable energy was extremely high, the prices have started to come down. Furthermore, the capacity of renewable energy sources to generate energy has also increased, thanks to technological advancements in the domain. As the importance for shifting towards such sources is being realized more, investments in the domain is increasing as well. For example, according the Statista report, in 2004, the investment in clean energy was just more than $45 billion, however, the number increased to $279.8 billion in 2017.

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The different types of renewable energy sources are bioenergy, solar energy, hydropower, and wind power. Among all these, the solar energy is being utilized considerably at the current time, which can be ascribed to the reducing costs of its solutions, thereby helping more people to adopt these solutions without budgetary constraints. In addition to this, governments all over the world are supporting the utilization of solar energy by offering feed-in tariff and incentives for the installation of solar energy systems.

Renewable energy resources have a number of applications, such as utility, residential, industrial, and commercial. Out of all these, the demand for renewable energy is expected to be significantly high for utility applications in the years to come, which can be primarily attributed to the increasing need for decreasing carbon dioxide emissions. This is only possible by producing renewable energy at a large scale, and since utility projects are among the prime generators of power, their usage of renewable energy can considerably increase its share in the total power production. Apart from this, commercial and residential sectors are also adopting renewable energy solutions, owing to the reduction in the cost of solar photovoltaic cells.

Geographically, the Asia-Pacific region is predicted to emerge as a major renewable energy market in the near future, which is because of the surging environmental concerns, rapid economic growth in developing countries, including India and China, and swift urbanization in the region. In addition to this, the preference of several countries is shifting towards the auction system, which is a competitive selective process, as compared to the conventional feed-in tariff system, and this along with fiscal incentives and government initiatives is expected to increase the adoption of renewable energy.

In conclusion, the increasing environmental concerns, decreasing cost of renewable energy, and government incentives are resulting in the rising adoption of renewable energy all over the globe.