From solar panels to solar markets: Why business models matter

• Cost-competitiveness alone is insufficient for widespread adoption of low-carbon technologies; firms face substantial market challenges even after technologies become affordable
• Solar firms use business models as strategic tools by combining products and services, adjusting target groups, collaborating with other actors, and engaging with policy frameworks
• The research demonstrates that firms play a more decisive role in shaping market development than typically assumed, suggesting policy instruments and business models must work together more effectively to accelerate energy transition

Market Summary: Solar Technology Adoption and Business Model Innovation

Key Research Findings

Amanda Bankel's doctoral thesis examining Sweden's solar market reveals that achieving cost-competitiveness alone is insufficient for widespread adoption of low-carbon technologies like solar panels. Published March 20, 2026, the research identifies business models—not technology maturity or affordability—as the critical factor determining market development speed.

Main Challenges Identified

The study highlights several persistent market barriers facing solar firms:

• Weak integration with complementary technologies and infrastructure
• Limited technical knowledge among customers and installers
• Difficulty accessing capital
• Imbalanced interactions between market actors
• Unclear or unstable policy frameworks

Business Model Solutions

Swedish solar companies are actively addressing these challenges by:

• Combining products and services into integrated offerings
• Adjusting target customer segments
• Forming strategic collaborations with complementary market actors
• Engaging directly with policymakers and regulatory frameworks

Market Implications

The research demonstrates that solar firms play a more decisive role in shaping market development than previously assumed. This finding suggests that investors and policymakers should focus beyond technology costs and instead prioritize:

• Supporting innovative business model development
• Creating stable policy environments that enable business model experimentation
• Facilitating better coordination between policy instruments and commercial strategies

The thesis, titled "Business Models as Market Formation Devices," indicates that accelerating the energy transition requires understanding how markets develop in practice, not just in theory. This insight has direct implications for investment strategies in renewable energy sectors and policy design aimed at accelerating low-carbon technology adoption globally.