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The Residential Solar Photovoltaic (PV) Systems Market size is estimated to grow at a CAGR of 5.22% between 2023 and 2027. The market size is forecast to increase by USD 14.17 billion. The growth of the market depends on several factors including favourable government policies for solar power, increasing investments in renewable energy, and rising solar PV installations.
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Reduced residential solar PV system costs are the primary trend in the Residential Solar PV Systems Market size. 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 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.
In 2020, due to the COVID-19 pandemic, most operations of solar plants were halted, or construction activities in plants were suspended in APAC. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown restrictions, which led to the resumption of supply chain activities. For instance, the Government of India had planned to add 175 gigawatts (GW) to its existing renewable energy capacity by 2022. However, the delays in the signing of power sale agreements (PSAs) led to delays in capacity additions (by 2023). Such factors are expected to boost 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.
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 Residential Solar PV Systems 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.
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 residential solar pv systems market 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.
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 |
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 |
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. |
We can help! Our analysts can customize this market research report to meet your requirements.
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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