Solar and RWA Market
Investments require analysis of viability and the market itself. Let's explore whether the Solar Market and Real-world asset tokenization show potential for investment.
Last updated
Investments require analysis of viability and the market itself. Let's explore whether the Solar Market and Real-world asset tokenization show potential for investment.
Last updated
The global solar energy market has witnessed exponential growth between 1992 and 2023, driven by declining costs, technological advancements, and growing awareness of the need for clean energy solutions. As of 2024, the EIA reports that solar power has emerged as one of the fastest-growing renewable energy sources worldwide, accounting for over 60% of the total renewables yearly growth and an installed capacity reaching up to 574 gigawatts (GW).
This chart should illustrate the rapid increase in solar energy capacity globally over the last two decades, showcasing the upward trajectory of solar adoption. This comes as people recognize the power that solar energy has to deliver consistent and clean energy to the world's power grid.
Brazil stands as a shining powerhouse in the solar sector, blessed with one of the highest solar irradiance levels globally. The country's solar energy capacity has seen remarkable growth, expanding from less than 2 GW in 2017 to 35 GW in 2024. This growth trajectory positions Brazil as a key player in the renewable energy landscape, not just in Latin America but on the world stage.
The cost of energy in Brazil is expected to continue rising above inflation for the foreseeable future. This means that investments in solar will keep growing as the supply fails to keep up with the demand.
This reference distinctly highlights Brazil's pivotal role in the global shift towards renewable energy, positioning it as the second-largest country in terms of solar power capacity currently in the pre-construction phase. Despite the evident surge in efforts to harness solar energy, the demand for energy significantly surpasses the present expansion pace of Brazil's solar energy sector. This disparity underscores the critical need for sustained and increased investment, emphasizing the untapped potential within Brazil's solar market.
Real-world asset (RWA) Tokenization is the central part of SolarShare, making our entire business model possible. It is a crucial term to familiarize oneself with as the global trend towards RWA Tokenization is only increasing. Digital Asset Management firm 21.co reported that the market for tokenizing assets could reach as large as $10 trillion by 2030. This comes as NASDAQ also publishes reports on the role of tokenization and its disruption of industries, which shows the trend has started and is only growing.
What is RWA Tokenization, and why is it a massive benefit to all industries worldwide?
RWA Tokenization is the process of converting rights or ownership of tangible (physical) and intangible assets into digital tokens on a blockchain. This innovative approach allows assets that are traditionally illiquid or hard to divide, move, or trade, such as real estate, art, or even energy projects, to be easily traded and owned fractionally. By leveraging blockchain technology, RWA tokenization ensures transparency, security, and efficiency in transactions involving these tokenized assets. This process brings the following benefits:
Increased liquidity
Higher Accessibility
Transparency and Trust
Reduced Transaction Costs and Time
Global Market Participation
Enhanced Asset Management and Tracking
To take an already booming and profitable business such as Solar Energy, and add all of the above benefits paves the way for a truly remarkable investment that is not only potentially lucrative but also broadly accessible and sustainable. By applying RWA Tokenization to the solar energy sector, investors from around the globe can participate in renewable energy projects with lower entry barriers, enjoying the benefits of liquidity and transparency that were previously limited to traditional asset classes.
