North America Distributed Power Generation Market Size (2024 - 2029)

North America Distributed Power Generation Market Size Summary

The North American distributed power generation market is poised for significant growth, driven by increasing environmental concerns and supportive government policies. The market, which experienced a downturn due to the COVID-19 pandemic, has rebounded to pre-pandemic levels. Key factors propelling the market include incentives and tax benefits for solar panel installations, alongside the high costs associated with grid expansion. Despite a reduction in tax credits for solar power generation in the United States, the commercial and industrial sectors are increasingly adopting distributed solar power systems for their economic advantages. These systems provide a reliable energy source, mitigating issues like downtimes and equipment damage caused by voltage fluctuations in traditional power grids. The United States is expected to lead the market, benefiting from the economic and environmental advantages of domestic distributed power generation.

The solar photovoltaic (PV) sector is anticipated to experience robust growth, becoming the most favored form of distributed power generation due to its low setup costs and declining solar panel prices, bolstered by government subsidies. The demand for clean energy is a significant driver for the region's distributed solar power market, with substantial increases in small-scale solar capacity installations, particularly in residential areas. Rooftop solar systems offer electricity services to households without access to traditional power sources, reducing costs in remote locations. The commercial and industrial segments are also expanding, driven by cost savings on electricity bills. The United States continues to dominate the market, with states like California leading in residential solar PV installations. Individual state renewable energy targets further support market growth, alongside significant developments in solar and wind energy projects. The market remains fragmented, with major companies like Caterpillar Inc., Total SA, Siemens AG, Schneider Electric SE, and Sunrun Inc. actively participating in the sector's expansion.