Residential Solar Market Size, Share, Growth, and Industry Growth, By Type (Grid-Tied Solar System and Off Grid Solar System), By Application (Lighting and Appliance), Regional Forecast To 2033

RESIDENTIAL SOLAR MARKET REPORT OVERVIEW

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The global residential solar market size was USD 28.71 billion in 2024 & the market is projected to touch USD 93.36 billion in 2033, exhibiting a CAGR of 14.0% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with residential solar experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributable to demand returning to pre-pandemic levels once the pandemic is over.

Residential solar comprises 72 solar cells with a dimension of 65 by 39 inches. However, a commercial solar system consists of 96 solar cells with dimensions of 78 inches by 39 inches. Both solar systems are installed. Similarly, that is, by a bolted racking system. There are generally three types of solar power systems, on-grid, hybrid, and off-grid solar systems. It saves costs by consuming minimum electricity, it is environment-friendly, and it reduces greenhouse gas emissions such as carbon-di-oxide

Environmental pollution is on the rise, and the government is offering tax breaks and incentives to install solar panels, which is fueling the residential solar systems market. The demand for solar energy systems in the power generation sectors has also increased due to the reduction in the water footprint associated with these systems. Due to an increase in rooftop installations and subsequent growth in applications in the architecture industry, the market for solar cells has seen significant growth. Additionally, it is anticipated that the need for concentrated solar power systems will increase as solar power towers and parabolic troughs become more popular in the energy-producing industry.

COVID-19 Impact

"Halt On Construction Activities Retarded Market Growth"

Due to lockdowns, travel restrictions, and business closures, the COVID-19 pandemic is negatively affecting the economies and industries in many different countries. The COVID-19 outbreak caused a disruption in the precast concrete market due to a slowdown in raw material production, limitations on supply chain and trade movements, a drop in demand for construction, and a fall in new projects. However, as more COVID-19 instances are reported, there is an increasing need for medical facilities and quarantine structures/units. This situation is boosting the market for precast concrete and driving demand for modular constructions. Due to the abrupt closure of national and international borders, the outbreak has altered operational efficiency and interrupted value chains, resulting in loss of revenue and harm.

LATEST TRENDS

"Growing Emphasis On Renewable Energy to Offer Lucrative Growth Opportunities"

The rising investment in renewable energy is forecasted to surge the demand for residential solar power. Over the past two decades, a dramatic shift in the world's energy mix has occurred. The energy supply and demand were largely balanced thanks to improvements in energy efficiency. Compared to conventional sources, producing power from renewable sources has a greater overall cost. But as renewable technology develops, fossil fuel-based power plants are forced to compete. The adoption of renewable energy sources was prompted by expanding environmental awareness and low carbon emissions from renewable sources, which increased global investments in renewable energy. Investments in the nation's solar energy sector are increasing, backed by the increased emphasis on renewable energy sources, which is expected to fuel the residential solar market growth.

RESIDENTIAL SOLAR MARKET SEGMENTATION

By Type Analysis

By type, the market is segmented into grid-tied solar systems and off-grid solar systems.

By Application Analysis

Based on application, the market is classified into lighting and appliances.

DRIVING FACTORS

"Rising Environmental Concerns to Propel the Product Demand"

The market for solar energy is primarily being driven by increased environmental deterioration as well as the availability of government subsidies and tax breaks for the installation of solar panels. The lower water footprint of residential solar energy systems is also expected to give a rise in demand for them in the industries that generate power. The demand for solar cells has greatly increased as a result of an increase in the installations of rooftop solar systems, which was followed by an increase in architectural industry applications. Furthermore, it is projected that the utilization of solar power towers and parabolic troughs would result in a rise in the need for solar power systems.

"Adoption of Solar Energy Due to Its Cost-Saving Factor to Augment Market Growth"

To expand the capacity of photovoltaic (PV) systems for displacing the current conventional sources, photovoltaic storage systems must be developed. The adoption of the storage grid is anticipated to expand along with the need for PV installations, which will feed the demand for lithium-ion batteries for solar energy storage and propel the expansion of the solar energy market. Due to an increase in installations and the use of solar panels, the amorphous silicon cells market is anticipated to grow at the fastest rate. Additionally, because more affordable solar panels are being produced, the demand for copper indium gallium selenide (CIGS) is anticipated to rise during the projection period. Additionally, it is anticipated that during the forecast period, demand for cadmium telluride will increase due to low-cost manufacturing and improvements in solar modules' efficiency.

RESTRAINING FACTORS

"Higher Costs and the Population's Inclination Towards Conventional Fuels to Hamper Growth"

The presence of other energy sources is estimated to impede the residential solar market growth. The population prefers using conventional fossil fuels rather than opting for advanced solar power backed by its easy availability in the global market. These factors are anticipated to cause a decline in growth in the market. Additionally, the higher cost associated with installing residential solar is also expected to hamper growth in the market.

RESIDENTIAL SOLAR MARKET REGIONAL INSIGHTS

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"Asia Pacific to Dominate the Market Backed by the Higher Electricity Demand"

Asia Pacific to lead by owning a major part of the residential solar market share due to the high electricity demand and an enhanced standard of living. The demand for suitable solar irradiance is also estimated to gain growth in the region.

Europe is expected to show significant growth in the market owing to the rising number of solar farms in the global market.

KEY INDUSTRY PLAYERS

"Key Players Focusing On Innovative Technology Development to Grow in Market"

Companies are adopting various organic and inorganic techniques to gain constant growth in the market. The companies are developing strategies to enhance the company portfolio to gain a major advantage in the global market. The key players are investing in the research and development of the product. Additionally, the companies are indulging themselves in maintaining a competitive edge in the market. The major players also emphasize implementing various strategies to strengthen market growth. Companies also use innovative practices and techniques to create new technologies. Players are focused on acquisitions and investments to increase sales. The marketplace is competitive as a result of the existence of numerous huge firms.

List of Top Residential Solar Companies

• Sungevity Inc. (U.S.)
• Sunnova Energy International Inc. (U.S.)
• LG Electronics Inc. (South Korea)
• Hanwha Group (South Korea)
• Trina Solar Co. Ltd. (China)
• Sunrun Inc. (U.S.)
• Tesla Inc. (U.S.)
• SunPower Corp. (U.S.)
• Panasonic Corp. (Japan)

REPORT COVERAGE

The market research study offers thorough information on numerous market aspects. The growth drivers, restraints, geographical analysis, competitive environment, and challenges are a few of them. Additionally, it provides an analytical analysis of market trends and projections for stem cells to show potential investment areas. From 2017 through 2031, the market is objectively assessed to determine its financial viability. The report's data was compiled using various primary and secondary sources.