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The US Residential Solar Market size is forecast to increase by USD 1.86 billion and is estimated to grow at a CAGR of 7.27% between 2023 and 2027. The market in the US experiences growth driven by critical factors shaping the renewable energy landscape. With increasing investments in renewable energy, there's a heightened emphasis on solar power adoption among residential consumers. Moreover, favorable government regulations and incentives incentivize homeowners to invest in solar PV installations, promoting sustainable energy solutions. Additionally, the rising number of solar PV installations reflects the growing consumer interest in reducing carbon footprints and achieving energy independence. This dynamic market landscape underscores the pivotal role of residential solar solutions in advancing the transition towards clean and sustainable energy sources in the US. This market research and growth report includes an in-depth analysis of key market drivers, trends, and challenges during the forecast period.
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The crystalline silicon segment is estimated to witness significant growth during the forecast period. There is an increasing adoption of crystalline silicon PV systems segment as solar PVs across the US. The main components of this PV system are built using crystalline silicon (c-Si) solar cells, which are highly stable. The main factor that is fuelling the adoption of this segment as solar PV in residential applications is due to its high-efficiency ratings and reliability of the cells.
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There is an increasing R&D and development initiatives which is resulting in l the availability of technologically advanced systems. For example, DOE supports c-Si photovoltaic (PV) R&D efforts that result in market-ready technologies. Current DOE research efforts focus on innovative ways to minimize costs. Furthermore, there is significant research and development taking place on minimizing raw material requirements which include pioneering ultra-thin c-Si absorber layers, developing kerf-free wafer production techniques, and optimizing growth processes. Additionally, the strong presence of prominent market players in the country is expected to fuel the growth of this segment in the future. Hence, such factors are fuelling the growth of this segment which, in turn, will drive the market growth during the forecast period.
The market in the US is experiencing a surge in demand for rooftop solar PV systems driven by factors such as government policies, cost, and concerns over climate change risk, leading to increased adoption of grid-connected systems. With FIT programs and incentives, along with tax benefits like the solar tax credit, homeowners are turning to alternative sources of electricity, leveraging sunlight to reduce electricity costs and reliance on fossil fuel reserves while contributing to renewable-based clean power generation. The market also sees a rise in the deployment of residential solar projects and battery storage systems, supported by net metering schemes and the development of nonchemical technology, amidst rapid industrialization and urbanization. Additionally, innovations like floating panels offer promising opportunities for further expansion in its utilization.
One of the key factors driving the market growth is the increasing investments in renewable energy. The United States is witnessing a surge in renewable energy technologies, driven by factors such as government policies promoting wind power generation and rooftop solar projects. This surge is also attributed to the competitive cost of production and the low carbon emissions associated with renewable sources. Despite the economic uncertainties posed by the pandemic, financial institutions and renewable energy development companies are actively investing in renewable energy, buoyed by incentives such as feed-in tariff (FIT) programs and tax benefits.
These investments are anticipated to have a positive impact on the market. Notably, in May 2020, the US surpassed China as one of the most attractive countries for renewables investment. Additionally, major corporations like Amazon are making significant commitments to these projects, with plans to supply 6.5 gigawatts (GW) of electricity from solar PV systems and wind power generation. This scale of investment is expected to drive growth in the market during the forecast period.
A key factor shaping the market growth is the residential energy storage as virtual power plants. There is an increasing adoption of PV due to the decrease in solar power prices, which has resulted in a continuous increase in the number of installations in the residential and commercial sectors. Some of the major factors that influence the power output of solar PV include solar irradiation of the region, the efficiency of the panel, and the degree of shading that varies depending on the time of day and the amount of cloud covering the region.
Therefore, PV is combined with battery energy storage systems in order to overcome the issue of intermittency of solar power and have reliable, cheaper, and cleaner renewable power. In this setup, both systems complement each other to provide uninterrupted power. Hence, such factors are positively impacting the market which in turn will drive the market growth during the forecast period.
The availability of alternative technologies is one of the key challenges hindering market growth. There is significant competition for residential solar systems with well-established power sources, including diesel generators and upcoming technologies, such as fuel cells that are cleaner and have higher efficiency. Hence, it can pose a significant threat to the market.
Moreover, there is a significant challenge due to the advent of newer technologies such as fuel cells which can efficiently function as a standalone system to offer power as well as heat without requiring to be charged by solar or wind power. Furthermore, the main advantage of fuel cells is that it has higher efficiency and higher energy density when compared to batteries making them suitable for residential applications. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Residential Solar-Market in US Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AUXIN SOLAR Inc: The company offers residential solar-equipment such as high-efficiency solar panels for eco-friendly power generation.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market continues to thrive, driven by various factors, including government policies supporting rooftop solar projects and incentivizing the adoption of solar energy. With the cost decreasing, more homeowners are investing in residential solar PV systems to reduce electricity costs and mitigate climate change risks. Programs like FIT programs and incentives and net metering schemes offer financial incentives, while tax benefits and solar tax credit further encourage adoption. As rapid industrialization and urbanization increase energy consumption, the demand for renewable energy deployment rises, leading to greater investments in solar PV systems and battery storage systems.
These initiatives contribute to the shift towards renewable-based clean power generation and the reduction of reliance on fossil fuel reserves. The demand for rooftop solar photovoltaic (PV) systems as an alternative source of electricity is on the rise, driven by various factors such as renewable energy integration and government schemes promoting clean energy adoption. In the EU, rooftop PV installations on commercial buildings and new residential buildings have seen significant growth, powered by photovoltaic cells and nonchemical technology harnessing sunlight. These systems offer numerous advantages, including low maintenance, durability, and cost efficiency, resulting in a reduction in electricity bills for residential establishments.
With power purchase agreements, tariffs, and tax exemptions facilitating affordability, the residential solar PV market experiences a favorable industry scenario, fostering the adoption of solar as a clean energy source in both single and multi-family homes. The rising demand for rooftop solar PV systems, coupled with grid-connected setups, is transforming household energy use. Innovations like floating panels are expanding solar deployment, while wind power adds to the renewable energy mix. Solar energy powers household appliances, reducing reliance on traditional electricity sources.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
US Residential Solar-Market Scope |
|
Report Coverage |
Details |
Page number |
138 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.27% |
Market growth 2023-2027 |
USD 1.86 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.3 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AUXIN-SOLAR Inc., BrightSource Energy Inc., Canadian-Solar Inc., Emeren, Enphase Energy Inc., Hanwha Corp., JA-Solar Technology Co. Ltd., JinkoSolar Holding Co. Ltd., LG Corp., Panasonic Holdings Corp., Schneider Electric SE, Silfab-Solar Inc., SPI Energy Co. Ltd., Sunnova Energy International Inc., Sunrun Inc., Tesla Inc., TotalEnergies SE, Trina-Solar Co. Ltd., Trinity Heating and Air Inc, and Yaskawa Electric Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Location
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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