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The Residential Solar Photovoltaic (PV) Systems Market size is forecast to increase by USD 14.17 billion at a CAGR of 5.22% between 2023 and 2027. The growth of the market is driven by several pivotal factors. Favorable government policies for solar power play a crucial role, providing incentives and subsidies that encourage homeowners to adopt solar energy solutions. Additionally, increasing investments in renewable energy projects are bolstering the development and deployment of solar PV systems, making them more accessible and affordable for residential use. The rising number of solar PV installations reflects the growing awareness and acceptance of solar energy as a sustainable and cost-effective alternative to traditional power sources. These installations are fueled by advancements in solar technology, which enhance efficiency and reliability. Collectively, these factors highlight the dynamic expansion and significant potential of the market, underscoring its critical role in the transition to renewable energy and sustainable living.
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The market segmentation is by Type (On-grid and Off-grid) and the Technology segment is categorised as (crystalline silicon and thin film). The on-grid segment is the fastest-growing segment during the forecast year. The On-grid segment was the largest segment and was valued at USD 39.90 billion in 2017. The Regional Analysis consists of APAC, Europe, North America, Middle East and Africa, and South America. APAC is is most dominating region during the forecast period. It also includes an in-depth analysis of drivers (factors influencing market growth), trends (emerging patterns or shifts in consumer behaviour), and challenges (barriers or obstacles faced by the industry)
The on-grid segment is estimated to witness significant growth during the forecast period. In the residential solar photovoltaic systems market, the grid-connected residential solar PV system powers the building during the day and remains connected to the local grid for power supply at night. A solar inverter converts the direct current (DC) supplied by a module to alternating current (AC) while synchronizing the AC output with the AC in the grid.
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The main advantage of grid-connected residential solar PV systems is the relatively low operating and maintenance costs, resulting in lower electricity bills. Grid-tied residential solar power systems account for the majority of the world's installed solar power capacity. Due to the advantages of grid-tied residential solar power systems, the demand for Residential Solar PV Systems Market share is expected to grow during the forecast period.
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APAC is estimated to contribute 67% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. China, Japan, India, Australia, and South Korea are the major leading countries in the APAC region. The major growth in APAC is owing to the financial incentives programs such as feed-in-tariffs (FiTs) in China, Japan, Thailand, and Vietnam.
Moreover, in recent years, the residential solar PV systems market has grown rapidly in APAC. According to the IEA, China has overtaken the US in annual solar installed capacity and remains the world leader in solar power. Furthermore, India is also rapidly increasing solar power production to meet growing energy demand and reduce pollution. As part of the Jawaharlal Nehru National Solar Mission, India aims to reach 20 GW of on-grid solar capacity and 2 GW of off-grid solar capacity by 2022. Such factors are expected to drive the growth of the regional residential solar PV systems market during the forecast period.
Increasing investments in renewable energy is the key factor for the growth of the market. The global energy mix has changed significantly over the past two decades. Energy efficiency development plays an important role in balancing energy supply and demand. According to the International Energy Agency (IEA), renewable energy will account for 30% of global electricity production by 2022. Renewable energy technologies are evolving and the residential solar photovoltaic (PV) systems market competition for new fossil fuel power plants is intensifying.
Moreover, solar PV technology is one of the most widely used renewable energy sources in the world. Growing focus on renewable energy sources has led to increased investment in solar power projects, which is expected to drive the growth of the global residential solar power system market during the forecast period.
Reduced residential solar PV system costs are the primary trend in the market. In the past, high costs and volatility have hampered the adoption of solar energy. The intermittent nature of solar PV energy can be overcome through the use of energy storage systems. This not only fills the gap but increases the acceptance of renewable energy in hybrid systems. By integrating an energy storage system, the electricity generated by solar PVs can be stored and used when needed.
Moreover, in 2020, the cost of residential solar systems has more than doubled compared to 2010. The falling cost of residential solar power systems has led to their widespread adoption and increased installations over the years. Decreasing the cost of residential solar PV systems will increase the demand for residential solar PV systems during the forecast period.
The increasing number of alternative energy sources is the challenge that affects the growth of the market. Many countries prefer the use of fossil fuels instead of renewable energy. This is due to the abundance of fossil fuels available to meet their needs and generate electricity. The cost of setting up renewable energy farms for power generation is very high. Also, power generation from renewable sources is not at the same level as power generation from fossil fuels. Therefore, there is a higher preference for non-renewable energy sources in the market instead of the residential solar photovoltaic systems market.
Furthermore, the low cost of natural gas is driving increased power generation from natural gas, which poses challenges for the residential solar photovoltaic systems market. The US shale gas exploration is on the rise, reaching a record high. Therefore, the growth of alternative energy sources will affect the demand for solar energy, which will impede the growth of the market during the forecast period.
The market analysis 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 PV Systems Market 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.
ABB Ltd.: The company offers residential solar PV systems such as UNO-R and the Q CELLS Q.PEAK Duo.
This market research and growth 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 is growing due to increased awareness of carbon emissions and the shift from conventional fuels to cleaner energy sources. Tax benefits and net metering schemes, along with battery storage systems, have spurred private investment. The federal government’s solar investment tax credits (ITC) and green building certification further encourage adoption. Technologies like floating panels, wind power, and fuel cells, combined with the retrofit solar panels segment, enhance resale value and ensure an uninterrupted power supply. Data centers benefit from clean technology power generation. Financing options and utility power supply connections also contribute to market growth, while income tax incentives and ITC bolster investments in clean energy solutions like biomass.
Environmental concerns and the push to reduce the carbon footprint have significantly influenced the market. Transportation and renewable-based clean power generation are pivotal, especially in grid-connected systems. The residential segment, alongside the commercial segment, benefits from the Solar Energy Industries Association's advocacy and the federal government's solar tax credit (ITC). Fossil fuel reserves are depleting, prompting more investments in solar energy for residential properties and renovation work. Energy providers and new construction solar panels segment are key players. Utility power supply connection is essential for rooftop solar projects. California leads with ambitious solar energy targets, supported by FIT programs and EU rooftop PV initiatives. The European Joint Research Centre and coalition agreements further the demand for residential solar energy, reducing electricity costs and addressing climate change risks.
The market is rapidly evolving, driven by initiatives from the Solar Energy Industries Association and support from the federal government through the ITC (Investment Tax Credit). Construction Insights highlight the increasing integration of utility power supply connections in new residential buildings. The Residential Solar Energy Market is growing as the cost of solar energy continues to decrease, making it more accessible to homeowners. Addressing climate change risk is a priority, and coalition agreements aim to boost solar PV on commercial buildings and new residential buildings. Additionally, the market sees a rise in off-grid solar power systems, providing sustainable energy solutions in remote areas and reducing reliance on traditional power grids.
The residential solar PV systems market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in USD Billion for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
Residential Solar PV Systems Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.22% |
Market growth 2023-2027 |
USD 14.17 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.13 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 67% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks, Residential Solar PV Systems Market Industry Report |
Key companies profiled |
ABB Ltd., Canadian Solar Inc., Enphase Energy Inc., Hanwha Corp., Huawei Technologies Co. Ltd., Jiangsu SUMEC Group Co. Ltd., JinkoSolar Holding Co. Ltd., Kyocera Corp., LG Corp., Panasonic Holdings Corp., Reliance Industries Ltd., Schneider Electric SE, Sharp Corp., SMA Solar Technology AG, SolarEdge Technologies Inc., Sunrun Inc., Tesla Inc., TotalEnergies SE, Trina Solar Co. Ltd., and Vivint Inc. |
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, Residential Solar PV Systems Market Growth Analysis |
Customization purview |
If our 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 Type
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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