US Residential Solar Market Analysis - Size and Forecast 2025-2029

US Residential Solar Market Size 2025-2029

The US residential solar market size is forecast to increase by USD 10.93 billion at a CAGR of 12.3% between 2024 and 2029.

• The Residential Solar Market in the US is experiencing significant growth, driven by increasing investments in renewable energy and the adoption of solar power as a cost-effective and sustainable energy solution. The integration of residential energy storage systems is a key trend, enabling solar panels to function as virtual power plants during peak energy usage hours. This not only reduces reliance on traditional power grids but also provides energy security and stability. However, the market faces challenges, including the availability of alternative technologies such as wind and geothermal energy, which may impact the competitiveness of solar power.
• Additionally, the upfront costs of solar panel installation and maintenance can be a barrier for some homeowners. To navigate these challenges, companies can explore partnerships with energy providers, offer financing options, and focus on improving the efficiency and affordability of their solar panel systems. Moreover, the emergence of smart home technology and the integration of solar panels with other home systems, such as heating and cooling, can create new opportunities for innovation and growth in the market. Companies like Tesla, SunPower, and Sunrun are leading the charge, offering integrated solar and energy storage solutions to meet the evolving needs of homeowners.
• By staying attuned to these trends and challenges, companies can effectively capitalize on the potential of the Residential Solar Market in the US and position themselves for long-term success.

What will be the size of the US Residential Solar Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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• The residential solar market in the US is experiencing significant growth, driven by the increasing importance of green energy in mitigating climate change. Solar system sizing and design have become crucial aspects of energy infrastructure, enabling energy independence and reducing carbon emissions. The integration of solar energy with electric vehicles and energy management systems is transforming the market. Energy conservation, energy efficiency, and smart grid technologies are essential components of this transition. Solar irradiance and resource assessment play a vital role in solar energy simulation and modeling, ensuring optimal system performance. Building energy efficiency and industrial energy efficiency improvements are complementary to solar system implementation.
• Energy policy and grid modernization are shaping the market landscape, with a focus on energy economics and energy storage technologies. Solar panel cleaning and maintenance are essential for maximizing system productivity. Sustainable development and renewable energy are key trends, with solar system monitoring and energy audits providing valuable insights for businesses.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• Technology
  • Crystalline silicon
  • Thin-film
• Location
  • California
  • Florida
  • Arizona
  • Rest of US
• Type
  • Rooftop solar systems
  • Ground-mounted solar systems
• Connectivity
  • On-grid solar systems
  • Off-grid solar systems
• Geography
  • North America
    • US

By Technology Insights

The crystalline silicon segment is estimated to witness significant growth during the forecast period.

The residential solar market in the US is witnessing significant growth, driven by advancements in solar technology and increasing consumer demand for sustainable energy solutions. Solar energy systems, including solar panels made from crystalline silicon, are at the forefront of this trend. Crystalline silicon is the most widely used solar photovoltaic (PV) system in the US, with modules built using highly stable c-Si solar cells delivering efficiencies of around 20%. Two types of c-Si are used to manufacture PV modules: mono-crystalline silicon and multi-c-Si. Both types function similarly in the overall solar PV system, converting solar energy into electricity. Mono-crystalline panels are produced by molding silicon into bars and cutting it into wafers, while multi-c-Si solar panels are made by melting silicon fragments together.

Solar energy distribution is facilitated through grid-tied systems, enabling excess energy generated to be fed back into the grid. Solar maintenance is crucial for optimal system performance, with regular monitoring and solar panel cleaning essential. Solar energy research continues to focus on improving solar panel efficiency, with innovations in solar cell technology and solar tracking systems. Solar energy demand is increasing, leading to the development of new solar energy projects, including ground-mounted solar farms and rooftop installations. Solar energy standards ensure the safety and efficiency of solar systems, while solar energy certification and financing options make it easier for homeowners to invest in solar.

Solar energy consumption is on the rise, with solar energy leasing and power purchase agreements (PPAs) providing affordable access to solar energy. Hybrid systems combining solar and battery storage are gaining popularity for their ability to provide energy during power outages. Solar thermal systems and solar water heating are also part of the solar energy industry's expansion. Solar energy regulations ensure a level playing field for businesses and consumers in the solar market. Solar energy innovation continues to drive down costs and increase efficiency, making solar energy an attractive investment for homeowners and businesses alike.

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The Crystalline silicon segment was valued at USD 8077.40 million in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the US Residential Solar Market drivers leading to the rise in adoption of the Industry?

• Renewable energy investments are significantly driving the market's growth, with increasing allocations towards sustainable energy sources.

• The US residential solar market is witnessing substantial growth due to increasing renewable energy investments. According to recent research, over USD 270 billion in capital has been announced for utility-scale clean energy projects and manufacturing facilities since 2022, surpassing the total investment into US clean power projects commissioned between 2015-2022. The Inflation Reduction Act, enacted in August 2022, has accelerated the expansion of the solar manufacturing base in the country. Over 100 gigawatts of planned solar module assembly capacity have been announced, representing 79 new facilities and/or expansions and more than USD 13 billion in investment. These investments are expected to significantly boost the residential solar market in the US.
• The expansion of the solar manufacturing base will lead to reduced costs and increased availability of solar panels, making solar energy a more viable and affordable option for homeowners. Additionally, the Act provides incentives for homeowners to install solar panels, further fueling market growth.

What are the US Residential Solar Market trends shaping the Industry?

• The emerging market trend involves the utilization of residential energy storage systems as virtual power plants. This innovation allows for the aggregation and dispatch of distributed energy resources, contributing significantly to the power grid as a flexible and sustainable energy solution.

• Solar energy has gained significant traction in the US market due to its sustainability and cost-effectiveness. The residential solar market has witnessed steady growth, driven by the decreasing prices of solar panels and the increasing awareness of energy efficiency. However, the intermittent nature of solar power generation poses a challenge. Solar energy production depends on various factors such as solar irradiation, panel efficiency, and shading. To ensure continuous power supply, solar energy systems are integrated with battery energy storage systems. These systems store excess solar energy during peak production hours and release it during periods of low solar irradiation or high energy demand.
• Solar air conditioning is another emerging trend that utilizes solar energy for cooling, reducing the dependence on traditional energy sources. Solar energy forecasting and ground-mounted solar installations are also gaining popularity to optimize solar energy generation. Solar maintenance is crucial to ensure the longevity of solar panels, which typically have a lifespan of 25-30 years. Overall, the solar energy market is dynamic, driven by technological advancements and increasing consumer demand for renewable energy solutions.

How does US Residential Solar Market face challenges during its growth?

• The expansion of the industry hinges on the accessibility of advanced technologies, posing a significant challenge to its growth.

• Residential solar systems in the US market face competition from established power sources like diesel generators and emerging technologies, such as fuel cells, which offer cleaner and more efficient energy solutions. Solar photovoltaic (PV) systems can function as backup power or as standalone systems, storing excess energy in batteries for night-time usage. However, solar PV systems face challenges from fuel cells, which can provide both power and heat without reliance on solar or wind power. Solar energy research and development continue to drive advancements in solar technology, including solar thermal and solar water heating systems, grid-tied systems, and battery storage solutions.
• Solar energy demand is increasing due to growing environmental concerns and the desire for energy independence. Solar energy standards and regulations are also evolving to encourage the adoption of renewable energy sources. Despite these advantages, solar panel degradation and the high upfront cost of solar systems remain significant challenges. Solar energy purchase power agreements (PPAs) and rebates offer financial incentives for residential solar adoption, making the technology more accessible to homeowners. The residential solar market in the US is dynamic, with advancements in technology, increasing demand, and regulatory support driving growth. However, competition from established power sources and emerging technologies, as well as challenges like solar panel degradation and high upfront costs, present significant hurdles.
• Ongoing research and innovation are crucial to addressing these challenges and expanding the reach of solar energy in the US.

Exclusive US Residential Solar Market Customer Landscape

The market forecasting 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 market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• AUXIN SOLAR Inc.
• BrightSource Energy
• Canadian Solar Inc.
• Emeren Group Ltd.
• 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 Solar Inc.
• Yaskawa Electric Corp.

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.

Recent Development and News in Residential Solar Market In US

• In February 2023, SunPower Corporation, a leading solar technology and energy services provider, announced the launch of its Maxeon 4 solar panels, boasting record-breaking efficiency levels of up to 22.8%. This new product offering marks a significant advancement in solar technology, promising increased energy production and reduced installation space for residential customers.
• In July 2024, Tesla, the electric vehicle and renewable energy company, formed a strategic partnership with Home Depot, the largest home improvement retailer in the US. This collaboration allows Home Depot to sell, install, and service Tesla's solar panels, batteries, and EV charging stations at their stores and online, expanding Tesla's reach in the residential solar market.
• In September 2024, Sunrun, a leading residential solar, battery storage, and energy services company, raised USD 300 million in a senior secured notes offering. The proceeds from this funding round will be used to finance the growth of their business, including the development, installation, and acquisition of residential solar projects.
• In March 2025, the Inflation Reduction Act was signed into law, providing significant incentives for renewable energy adoption, including a 30% federal tax credit for residential solar installations. This policy change is expected to boost the residential solar market in the US, as homeowners will be incentivized to invest in solar energy systems due to the substantial cost savings.

Research Analyst Overview

The residential solar market in the US continues to evolve, driven by advancements in technology and shifting consumer preferences. Solar energy systems, including solar thermal, solar water heating, and grid-tied systems, are increasingly adopted for their sustainability benefits. Battery storage solutions enhance the efficiency of solar energy systems, providing backup power and energy management capabilities. Solar energy research is ongoing, focusing on improving solar panel efficiency, durability, and affordability. Solar energy demand is growing, fueled by net metering, solar energy optimization, and solar monitoring technologies. Solar energy standards are continuously evolving, ensuring safety and performance. Solar panel degradation is a concern, with research focusing on extending panel lifespan and minimizing performance loss.

Solar energy PPAs and rebates offer financial incentives for solar energy adoption, while solar energy financing and leasing options make solar energy more accessible. The solar energy industry is innovating, with hybrid systems combining solar and wind energy, solar air conditioning, and solar energy forecasting. Solar energy regulations are being implemented to encourage adoption and ensure a level playing field. The solar energy workforce is expanding, with opportunities in installation, maintenance, and research and development. Photovoltaic (PV) cells and solar trackers are essential components of solar energy systems, with ongoing research focusing on improving their performance and reducing costs.

Off-grid systems provide energy independence, while solar energy certification ensures quality and reliability. The solar energy industry's continuous dynamism offers exciting opportunities for businesses and consumers alike.

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Residential Solar Market in US insights. See full methodology.

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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 market growth and forecasting between 2025 and 2029
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across US
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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