Canada Solar Encapsulation Market Overview, 2030

Canada’s solar encapsulation (PV) market has created a unique identity, with its expansion focused in regions where community solar initiatives and rural electrification efforts tackle energy accessibility alongside decarbonization aims. These solar setups frequently function in tough weather conditions, ranging from the snow-heavy roofs in Ontario to the hail-affected areas in Alberta and Saskatchewan. Such settings place significant mechanical pressure on PV panels, making proper encapsulation a vital factor for their long-lasting performance and financial viability. In the past, the use of standard EVA encapsulants showed weaknesses under ongoing freeze-thaw cycles, resulting in micro-cracking, separation, and moisture penetration. Consequently, there was a market transition towards glass-glass laminates, which provide greater strength and protection against environmental factors, as well as to stronger ionomer-based encapsulants designed for high resistance to impact. These materials are capable of enduring hail damage while retaining their adhesive qualities and clarity in low temperatures. Techniques for low-temperature lamination have become popular to lessen thermal strain during production, thereby maintaining the integrity of materials and prolonging the lifespan of modules in cold environments. The focus on mechanical sturdiness is supported by Canadian Standards Association (CSA) and IEC certification standards, which include tests for hail damage and thermal cycling as part of module validation. This technical advancement meets the requirements of distributed generation projects in isolated and indigenous areas, where access for maintenance is limited and reliability is crucial. Developers and EPCs increasingly select encapsulants showing reliable performance in accelerated aging assessments that replicate years of exposure to heavy snow, ice, and UV rays. As Canada’s solar capacity grows through both on-grid and off-grid installations, encapsulation approaches continue to favor durability over the lowest initial costs, understanding that in extreme climates, true value lies in protecting energy production and reducing the need for service throughout the module's life.

According to the research report ""Canada Solar Encapsulation Market Overview, 2030,"" published by Bonafide Research, the Canada Solar Encapsulation market is expected to reach a market size of more than USD 260 Million by 2030. Canada’s market for solar encapsulation is witnessing consistent, regionally influenced growth, supported by provincial rooftop initiatives and a growing number of commercial and industrial projects. These efforts are especially prominent in regions where favorable net-metering regulations and community energy programs exist, viewing distributed energy generation as a valuable economic and environmental resource. The varied climate across the nation characterized by prolonged, severe winters, significant snow loads, and regular hail occurrences has led the industry to adopt more stringent testing protocols for cold climates. These procedures simulate years of freeze-thaw cycles, hail impact, and UV radiation exposure, ensuring that encapsulation materials can uphold adhesion, visual clarity, and electrical insulation even in extreme conditions. Consequently, glass-glass module designs have become more popular, providing greater rigidity, resistance to moisture, and mechanical strength when compared to conventional glass-backsheet configurations. This transition aims not only to lengthen the lifespan of the modules but also to lessen long-term operational hazards and warranty disputes. At the forefront of domestic manufacturing is Canadian Solar, an integrated company engaged in both module fabrication and project development, while a variety of global suppliers of encapsulant films mainly from Asia and Europe support the market through specialized distributors. These suppliers offer advanced EVA, POE, and ionomer films designed for performance in cold conditions. Adherence to Canadian Standards Association (CSA) and International Electrotechnical Commission (IEC) testing standards is crucial for the market, as meeting these standards directly impacts insurability, funding options, and installer trust. By achieving or exceeding these criteria, developers and EPCs can reduce installation risks, obtain better insurance rates, and improve the financial viability of their operations.

In Canada's solar encapsulation industry, by materials is divided into Ethylene Vinyl Acetate (EVA), Thermoplastic Polyurethane (TPU), Polyvinyl Butyral (PVB), Polydimethylsiloxane (PDMS), Ionomer and Polyolefin. Ethylene-vinyl acetate (EVA) is the leading selection for residential and smaller commercial rooftops, primarily because of its affordability, ease of lamination, and established optical transparency. In these instances, where solar panels are typically set up in urban or suburban areas with moderate mechanical stress, EVA ensures dependable adhesion and moisture protection at a reasonable cost. Conversely, in provinces that endure long periods of sub-zero temperatures and frequent freeze-thaw cycles, polyolefin elastomer (POE) has become the favored encapsulant for providing enduring durability. The lower rate of water vapor transmission and higher resistance to potential-induced degradation (PID) of POE make it suitable for crystalline silicon panels used in harsh winter conditions, where moisture entry and electrical leakage can greatly affect efficiency. For areas vulnerable to severe hailstorms like parts of Alberta and Saskatchewan ionomer-based encapsulants are more often specified for valuable projects. Recognized for their outstanding impact resistance and mechanical stability, ionomers help preserve module integrity when subjected to high-velocity hail strikes, minimizing the chance of cell damage and delamination. These materials also keep their optical clarity and adhesion over many years of exposure, even under extreme thermal cycling. The use of ionomer encapsulants is particularly important for utility-scale and high-end commercial and industrial installations, where the costs and consequences of downtime and repairs are serious issues. These three material categories showcase a strategic connection between encapsulant characteristics and Canada’s varied climate-related obstacles.

In the solar sector of Canada, by technology is divided into Crystalline Silicon Solar and Thin-Film Solaris greatly shaped by aspects such as the scale of the project, its locality, and specific environmental requirements, resulting in two clear segments with distinct functions. Crystalline silicon modules including both monocrystalline and polycrystalline versions predominate in commercial and industrial (C&I) projects across the country. Their efficiency in converting sunlight, which usually falls between 18% and 22%, makes them well-suited for rooftops where space is limited and for ground installations that require maximizing generation per square meter. These modules are known for their strength against severe snow loads and benefit from a well-established supply chain, ensuring reliable performance and credibility for investors. Improved designs such as PERC, TOPCon, and bifacial crystalline modules are increasingly adopted to enhance energy yield in Canada's diverse lighting conditions. On the other hand, thin-film technologies which consist of cadmium telluride (CdTe), copper indium gallium selenide (CIGS), and amorphous silicon (a-Si) fill a more specialized role, particularly within microgrids that provide energy to remote areas and in Arctic or sub-Arctic regions. Thin-film panels are lighter and more pliable, plus they have a lower temperature coefficient, allowing them to retain their output more efficiently in conditions of reduced light, cold, and diffuse sunlight that are common in northern areas. Their consistent look and flexibility for use on unconventional mounting surfaces make them ideal for off-grid housing, mobile setups, and hybrid renewable energy systems, particularly where transport logistics and structural weight limits are significant factors. Even though their efficiency is typically less than that of crystalline types, thin-film modules can excel in situations with regular cloudiness, partial shade, or extreme cold, where crystalline output may decrease more dramatically.

Canada's solar energy development by application is divided into Ground-mounted, Building-integrated photovoltaic, Floating photovoltaic and Others (Automotive, Construction, and Electronics) is rapidly evolving, with various installation types emerging to suit local requirements and environmental factors. Ground-mounted projects are particularly robust in Alberta, where the availability of land, strong solar exposure, and helpful procurement initiatives have led to significant utility-scale developments. These systems typically employ single-axis tracking to enhance energy production and are crafted to withstand the wind and snow typical of prairie regions. In metropolitan areas like Toronto, building-integrated photovoltaics (BIPV) are becoming more common as part of refurbishments for high-rise and commercial building exteriors. In these instances, photovoltaic modules are embedded in curtain walls, skylights, and spandrel panels, functioning as both a design feature and a source of energy. This strategy complies with net-zero building standards and allows for seamless aesthetic integration while preserving usable rooftop areas. In Ontario, floating PV projects are being tested on lakes and reservoirs, taking advantage of Canada's extensive internal water resources. These systems gain from the cooling properties of water, which can enhance module performance, while also minimizing water loss and algae proliferation. Although these initiatives are still in the initial phases, pilot projects indicate significant potential for installation on underused water surfaces, especially in instances where land is limited or expensive. In outlying and off-grid areas such as cabins, lodges, and indigenous communities’ portable solar options are becoming increasingly popular. These lightweight systems, often foldable or modular, can be set up for seasonal use or relocated as necessary, supplying dependable power for lighting, communication, and small devices without depending on diesel generators.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Solar Encapsulation Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Materials
• Ethylene Vinyl Acetate (EVA)
• Thermoplastic Polyurethane (TPU)
• Polyvinyl Butyral (PVB)
• Polydimethylsiloxane (PDMS)
• Ionomer
• Polyolefin

By Technology
• Crystalline Silicon Solar
• Thin-Film Solar

By Application
• Ground-mounted
• Building-integrated photovoltaic
• Floating photovoltaic
• Others (Automotive, Construction, and Electronics) Show more