Share
Residential Solar PV Systems Market Size, Share, and Analysis, By Connectivity (On-Grid and Off-Grid), By Mounting (Ground Mounted and Roof-Top), By Construction (Retrofit and New-Construction), By Region (North America, Europe, Asia-Pacific, and Rest of the World), And Regional Forecast 2024-2034
Residential Solar PV Systems Market is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 5.8% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 39.4 billion and is projected to reach USD 73.8 billion by the completion of 2034.
Residential solar PV systems are solar panel setups specifically intended for residential properties to produce sustainable electricity using the energy from the sun. These systems include rooftop-mounted solar panels that convert solar energy into direct current (DC) electricity. The DC power is converted into AC power for household use by an inverter. In addition, important elements include solar panels, inverters, installation gear, and occasionally batteries for storing energy. These systems can either be connected to the grid to send extra power back, or used independently in isolated areas. In addition, residential solar PV systems provide several benefits such as lower utility bills, less environmental impact, and the possibility of achieving energy self-sufficiency. They might also raise the value of a property and could be eligible for government incentives.
Residential Solar PV Systems Market is projected to reach USD 73.8 billion over the forecast period, due to higher environmental consciousness, rising electricity prices, and several innovations in technology. The growth of the residential solar PV market is driven by some important trends such as declining costs of solar panels, multiple government incentives, and its integration with smart home technologies. The sector is facing high competition, which has resulted in better customer service and financing choices, such as solar lease and power purchase agreements. Besides, some markets do face hurdles such as grid integration issues and regulatory uncertainties, but the future potential is optimistic due to the increasing need for energy independence and rising interest in sustainable lifestyles. Despite these limitations, the market is expected to grow as home solar power becomes highly popular in the near future.
Source: Fatpos Global
Residential Solar PV Systems Market is divided by Connectivity into On-Grid and Off-Grid. The On-Grid segment is leading the residential solar PV systems market due to its higher cost-effectiveness and reliability. By selling excess power back to the grid, net metering lowers the electricity bill for homeowners. Additionally, compared to off-grid systems, that require costly battery storage choices for energy independence, on-grid systems have lower initial setup costs. Moreover, the popularity of on-grid installations is driven by the large availability of government incentives and subsidies. Hence, on-grid solar PV systems are the most common choice for residential solar PV setups due to their financial advantages, combined with government support and connection to the existing power grid.
Residential Solar PV Systems Market is divided by Mounting into Ground Mounted and Roof-Top. The Roof-Top segment is anticipated to lead the residential solar PV systems market due to the limited space in urban areas, where the majority of residential properties are situated, which makes roof-top installations more feasible and space-saving. Besides, rooftop solar systems use existing buildings, which eliminates the requirement for additional land or large modifications, thereby making it an affordable and convenient option for homeowners. Furthermore, government incentives and declining prices of solar panels are also responsible for boosting the popularity of roof-top installations. As a result, the ease of use of roof-top systems, along with their smooth integration into existing buildings, makes them the top choice for residential solar energy solutions.
Source: Fatpos Global
Government Incentives and Policies to Drive Growth in the Residential Solar PV Systems Market
Government incentives are a major factor in the growth of the residential solar PV systems market. Many governments provide financial incentives to lower the total cost of installing solar systems, such as tax credits, rebates, and subsidies. The initial financial load on homeowners is reduced by these incentives, which further increases the economic viability of solar energy solutions. In addition, homeowners can sell excess electricity back to the grid, which is a substantial benefit of laws like net metering. These encouraging policies not only promote the expansion of the market but also help in achieving international and national renewable energy targets, along with a more sustainable energy environment.
Declining Costs of Solar Panels Act as a Catalyst for Market Growth
Technological innovations and large-scale production have resulted in a substantial drop in the price of solar panels. Improvements in manufacturing methods and serious competition between manufacturers have offered more effective ways of producing goods, which led to low prices for consumers. In addition, the price drop has made solar panels more affordable and accessible, which has encouraged homeowners to further invest in residential solar PV systems. As a result, the market for residential solar PV systems is likely to expand, which further contributes to the high use of renewable energy as panel prices continue to fall.
High Initial Installation Costs in Residential Solar PV Systems Will Impact the Growth
High initial costs of installation are a major drawback in the residential solar PV systems market. These expenses not only include the solar panels, but also other costs such as inverters, mounting hardware, installation labor, and permitting fees. Many homeowners find it challenging to make a large initial payment, even though they will eventually save money on energy costs and may also receive government rewards. Therefore, although financing and leasing initiatives can help reduce this burden, the high initial cost still impacts the adoption in areas with lower income levels or less favorable financing terms. This restriction could impact the growth of the market as potential buyers may be hesitant to make a large upfront investment.
Residential Solar PV Systems Market is segmented based on regional analysis into five key regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The Asia Pacific region will capture the largest share of the residential solar PV systems market due to the outstanding development of cities and industries in countries such as China, India, and Japan, which led to a higher demand for energy. Governments in these nations are heavily backing the adoption of renewable energy with supportive policies and incentives. Furthermore, the region gains a major advantage from having leading solar panel producers, which lowers the expenses and provides easy availability of the panels.
In the meantime, North America's residential solar PV systems market is set to experience massive growth due to strong backing from the government and the increasing environmental consciousness of consumers. The U.S. federal government, along with different states, provides large incentives like tax credits and supportive financing choices. Besides, the high implementation of net metering policies also contributes to the growth of the market across the North American region.
Source: Fatpos Global
At first, the residential solar PV systems market was affected by the COVID-19 pandemic with disturbances in supply chains and economic uncertainties, which led to cancellation and delays of projects. However, the circumstances also raised awareness about the need for energy self-sufficiency and environmental conservation. As a result, governments started implementing supportive measures and incentives to promote economic recovery by increasing investment in household solar projects. Thus, although there were temporary obstacles, the pandemic ultimately highlighted the long-term benefits of solar power, which resulted in new enthusiasm and a recovery of the market.
|
ATTRIBUTE |
DETAILS |
|
Study Period |
2018-2034 |
|
Base Year |
2023 |
|
Forecast Period |
2024-2034 |
|
Historical Period |
2019-2022 |
|
Growth Rate |
CAGR of 5.8% from 2024-2034 |
|
Unit |
Value (USD Billion) |
|
Segmentation |
Main Segments List |
|
By Connectivity |
|
|
By Mounting |
|
|
By Construction |
|
|
By Region |
|
Residential Solar PV Systems Market size was valued at USD 39.4 billion in 2023 and is projected to reach the value of USD 73.8 billion in 2034, exhibiting a CAGR of 5.8% during the forecast period.
The Residential Solar PV Systems Market refers to the industry sector that deals with the design, manufacture, sale, installation, and maintenance of photovoltaic systems for homes.
The On-Grid segment and Roof-Top segment accounted for the largest Residential Solar PV Systems Market share.
Key players in the Residential Solar PV Systems Market include SunPower Corporation, First Solar, Inc., Vivint Solar, Inc., Sunrun Inc., Tesla, Inc. (SolarCity), Canadian Solar Inc., JinkoSolar Holding Co., Ltd., Trina Solar Limited, Enphase Energy, Inc., LG Electronics, Inc., Hanwha Q CELLS Co., Ltd., ReneSola Ltd., SolarEdge Technologies, Inc., Yingli Green Energy Holding Company Limited, JA Solar Technology Co., Ltd., And Other Prominent Players.
Government incentives and policies, along with declining costs of solar panels are the factors driving the residential solar PV systems market.
Select License Type
Select License Type
FATPOS CLIENT Appriciation DURING THE PROJECT
Working with Fatpos Global, allowed us to take advantage of their knowledge and easy approach, allowing us to collect important data utilizing a variety of techniques. The results were clearly presented and explained, and FG responded to our questions with speed and expertise.
|
Swiss-based global building materials manufacturer |
The analyses and presentations Fatpos Global have produced for us have been of a very high caliber and have allowed us to proactively improve our customer relationship management. They have also done so while maintaining complete anonymity. Without any doubt, we suggest Fatpos Global to you.
|
|
Tech-powered construction company |
We appreciate the team’s punctuality, flexibility in terms of report modification, post report purchase support and pleasant reaction all around. Overall, my experience with this company was nothing but positive, and I couldn't be more grateful for their excellent service. Thank you for all that you do!
|
|
American global management consulting firm |
We are able to concentrate on the topics and implications that are most important to our clients thanks to the adaptability and responsiveness of the team at Fatpos Global. We would highly recommend this company to anyone in need of their services, and I will certainly be using them again in the future.
|
|
Headquartered in Zug, Switzerland, leading supplier of medical and surgical instrument |
To better study our client demographics, develop the ideal product-price architecture, and enhance our target marketing initiatives, we hired Fatpos Global. Every component of the project was completed, and we are very happy with the useful insights and actionable results.
|
|
Kosovan company, A leading organic fertilizers producer |
Thank you for your team's generous assistance, The final report was delivered to me, and I find it to be really helpful. Also, you may be sure that I will get in touch with you if I ever require fresh materials for market research. Gratitude once more.
|
|
German specialty chemicals company based in Cologne, Germany |
