US - Solar Power Market by Technology, Application and Geography - Forecast and Analysis 2023-2027

US Solar Power Market Forecast 2023-2027

The US solar power market size is forecast to increase by USD 16.41 billion, at a CAGR of 10.24% between 2022 and 2027. The market's expansion hinges on several critical factors. Firstly, there's a notable surge in investments directed towards renewable power sources, highlighting a global shift towards sustainable practices. Additionally, the escalating demand for electricity, coupled with the considerable costs associated with expanding traditional grids, plays a pivotal role in driving market. Moreover, the emergence and increasing adoption of zero-power buildings represent a significant trend, reflecting a broader industry shift towards energy-efficient solutions. These factors collectively contribute to creating a conducive environment for the market's expansion, fostering innovation, technological advancements, and a sustainable approach towards meeting the world's energy needs.

Market Overview :

• The photovoltaic systems segment was the largest segment and was valued at  USD 15.10 billion in 2017.
• North America is is most dominating region during the forecast period
• It also includes an in-depth analysis of the growing application of concentrated solar power in buildings,  rising electricity demand high cost of grid expansion, and intermittent in solar power generation.

Solar Power Market Forecast and Trends 

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Market Trends 

A key factor shaping the market is the growing application of concentrated solar power in buildings. Concentrated systems utilize large mirrors or heliostats to manufacture solar energy by directing a large amount of sunlight onto a small area. It is then modified into heat and used to drive a steam turbine that produces electricity. In the US, one of the main consumers of electricity is the residential sector.

As the majority of the electricity for the residential sector is generated using fossil fuels, it can significantly contribute to CO2 emissions. As a result, there is an increasing adoption of renewable energy sources such as concentrated systems are utilized to produce the power required by buildings. For instance, in April 2022, SunOyster Energy GmbH developed a concentrating solar technology based on parabolic mirrors, which claimed to achieve 75% efficiency in converting direct radiation into heat. Hence, such factors are driving the market share during the forecast period.

Largest-Growing Segments

The market is rapidly evolving with the adoption of alternative clean energy sources to address Environmental concerns and reduce Greenhouse gas emissions. Technological advancements like Perovskite-based cells and silicon-based solar PV are driving the growth of solar installations and solar power-generating facilities across the country. The Solar Investment Tax Credit (ITC) has been a significant driver, incentivizing investments in clean electricity projects and increasing the Installed capacity of Solar panels. At both State and federal levels, policies such as the Renewable portfolio standard (RPS) are promoting the Expansion of solar PV and encouraging the adoption of Green energy solutions. Moreover, Power purchase agreements (PPA) have facilitated the development of Solar PV plants and Solar thermal power stations, diversifying the Technologies used for electricity generation in the solar sector. These initiatives contribute to reducing emissions and improving the Power scenario by integrating more Renewable energy into the national grid.

By Technology Analysis

The photovoltaic systems segment is estimated to witness significant growth during the forecast period. A photovoltaic system is essentially an electric energy system that is designed in order to supply usable solar energy by utilizing photovoltaics. It comprises several components such as solar panels, to absorb and transform sunlight into electricity. Additionally, it includes a solar inverter to transform the output from direct to alternating current and the mounting, cabling, and other electrical accessories to build up a working system of solar power. 

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The increasing adoption of solar energy systems is fuelled by the rising focus on renewable energy sources to minimize carbon footprint and the declining prices of PV systems. The demand for s is expected to increase in coming years due to factors such as decreasing costs due to several government initiatives and subsidies and the competitive bidding process. Furthermore, the demand for solar PV panels is fuelled by the rise in demand for clean and sustainable energy, especially in countries such as the US. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market during the forecast period.

Market Dynamic and Customer Landscape

The market is being driven by a shift towards alternative clean energy sources and the growing concern over Environmental concerns and Greenhouse gases. Technological advancements such as Perovskite-based cells and silicon-based solar PV are enhancing the sector. The solar Investment Tax Credit (ITC) remains a significant driver, incentivizing solar installations and increasing Installed capacity. Challenges include addressing natural gas consumption, managing Emissions, and navigating complex State and federal levels regulations related to Renewable energy and generation.

Key Market Driver

One of the key factors driving the market is the rising electricity demand and high cost of grid expansion. Factors such as population growth and rapid urbanization have significantly fuelled the demand for electricity in the US. Additionally, the increasing demand for energy is fuelled by global economic growth. Some of the key factors that are significantly contributing to the increasing demand in the US include electrification of the transportation and heating sectors, the rise in the number of electronically connected devices, and digitalization.

Furthermore, it is expected that there will be an increase in demand for energy services such as air conditioning, especially in the residential sector coupled with the increase in disposable income which can positively impact solar energy.  Additionally, the increasing demand from industrial sectors due to the rising use of motors across several industries Hence, such factors are expected to drive the market during the forecast period.

Major Market Challenge

Intermittency in solar power generation is one of the key challenges hindering market.  Even though there is growing adoption of solar energy systems due to their declining prices, the intermittent nature of systems can pose a significant threat to market. Some of the key factors that influence the output of systems include the degree of shade, panel efficiency, and solar irradiation, which change over the duration of the day.

Thus, the output of solar energy systems varies on these factors and thus it is not ideal to completely rely on solar power. As a result, several secondary power systems such as battery, wind power, a hybrid generator, or grid power are required to provide power in the absence of solar energy systems. Furthermore, rainy and cloudy weather also significantly impacts the generation of solar energy. Hence, such factors are expected to hinder market during the forecast period.

Market Customer Landscape

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 market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Customer Landscape

Major Market Companies

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.

Abengoa SA: The company offers solar power technologies through the tower and parabolic troughs.

The solar power market growth and analysis report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Abengoa SA
• Acciona SA
• Avantus LLC
• BrightSource Energy Inc.
• Canadian Solar Inc.
• Earthlight Technologies LLC
• Envinity
• First Solar Inc.
• Fun In The Sun Pool Heating Inc.
• Hanwha Corp.
• M. A. Mortenson Co.
• Nextera Energy Inc.
• Porter Electric LLC
• Posigen Solar
• Professional Solar Products
• SOLV Energy
• Southern Exposure Solar
• Star Solar Specialists LLC
• SunPower Corp.
• Trina Solar Co. Ltd.

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.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides a market research and growth analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Technology Outlook 
  • Photovoltaic systems
  • Concentrated solar power systems
•  Application Outlook
  • Utility
  • Residential
  • Commercial

Market Analyst Overview

The market is witnessing significant growth driven by various factors. One key driver is the increasing consumer preference for alternative clean energy sources due to growing environmental concerns and a strong emphasis on environmental protection. Favorable policies and incentives, such as the Investment Tax Credit (ITC) and Renewable portfolio standard (RPS) at state and federal levels, are encouraging investment in renewable energy and boosting the expansion of solar installations across residential and utility-scale segments. Technological advancements, particularly in solar PV panels like SunPower's monocrystalline solar PV panels and Perovskite-based cells, are enhancing the efficiency of solar PV panels and driving down the Levelized Cost of Electricity (LCOE). This has led to increased installed capacity and electricity-generating capacity additions in solar power-generating facilities and solar PV plants.

Moreover, the Solar Energy Industries Association (SEIA) plays a crucial role in advocating for green energy and promoting sustainable sources of power. Power Purchase Agreements (PPAs) are also facilitating private and public sectors to invest in utility-scale solar installations and in-house power generation, reducing reliance on Coal and gas and lowering greenhouse gases emissions. Overall, the US solar power industry is poised for continued growth and technological innovation in the coming years. The Solar Power Market in the US is experiencing robust growth, driven by the increasing demand for clean electricity and the rapid expansion of solar PV installations. This growth is motivated by the need to reduce Greenhouse gas emissions and shift towards Renewable power sources. The market has seen significant advancements in manufacturing PV cells and photovoltaic solar (PV) technology, leading to a surge in module shipments and the adoption of silicon-based solar PV panels.

Furthermore, the implementation of Power Purchase Agreements (PPA) has also played a pivotal role in promoting residential and utility-scale solar PV generation, making solar energy more accessible and affordable for consumers. Furthermore, the Solar Investment Tax Credit (ITC) has incentivized investments in solar projects, contributing to the positive Solar PV Pricing Trend. In addition to traditional Photovoltaic (PV) panels, the market is witnessing growth in Solar thermal power stations, highlighting the diverse range of Technologies used for electricity generation in the solar sector. This dynamic landscape reflects the US's commitment to cleaner energy solutions and underscores the pivotal role that solar energy plays in shaping the country's energy scenario toward a more sustainable future.

Market Scope
Report Coverage	Details
Page number	128
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 10.24%
Market growth 2023-2027	USD 16.41 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	9.42
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Abengoa SA, Acciona SA, Avantus LLC, BrightSource Energy Inc., Canadian Solar Inc., Earthlight Technologies LLC, Envinity, First Solar Inc., Fun In The Sun Pool Heating Inc., Hanwha Corp., M. A. Mortenson Co., Nextera Energy Inc., Porter Electric LLC, Posigen Solar, Professional Solar Products, SOLV Energy, Southern Exposure Solar, Star Solar Specialists LLC, SunPower Corp., and Trina Solar Co. Ltd.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the 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.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the market  size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across the US
• Thorough market growth and forecasting analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market report analysis of factors that will challenge the growth of market companies

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