Residential Solar Energy Market Size (2024 - 2029)

The residential solar energy sector is projected to experience significant growth over the forecast period, driven by supportive government policies, increased investments in rooftop solar projects, and the decreasing cost of solar energy, which have collectively boosted adoption rates. Despite challenges such as limited financing options and integration difficulties in certain regions, the market is poised for expansion, particularly in Asia-Pacific, where rising energy demand and favorable policies are prominent. This growth presents opportunities for manufacturers and suppliers as governments aim to enhance the renewable energy share through residential solar PV systems.

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Market Size of Residential Solar Energy Industry

Residential Solar Energy Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR (2024 - 2029) 6.69 %
Fastest Growing Market Asia Pacific
Largest Market Asia Pacific
Market Concentration High

Major Players

Residential Solar Energy Market Major Players

*Disclaimer: Major Players sorted in no particular order

Residential Solar Energy Market Analysis

The Residential Solar Energy Market size is estimated at 138.70 gigawatt in 2024, and is expected to reach 190.98 gigawatt by 2029, growing at a CAGR of 6.69% during the forecast period (2024-2029).

  • Over the medium term, factors such as favorable government policies, increasing investments in upcoming rooftop solar projects, and the reduced cost of solar energy, which has led to increased adoption of solar energy, are expected to drive the market during the forecast period.
  • On the other hand, the lack of financing options and the difficulties in integrating residential solar PV systems in regions like Africa are expected to restrain the market's growth.
  • However, ambitious targets are being undertaken to increase the renewable share in their energy mix. Governments across these nations also plan to increase the renewable energy share by deploying residential solar PV systems in the coming years. This factor, in turn, is expected to act as an opportunity for residential solar energy manufacturers and suppliers during the forecast period.
  • Asia-Pacific is expected to be the fastest-growing market during the forecast period due to the rising energy demand. This growth is attributed to increasing investments and supportive government policies in Asia-Pacific countries, including India, China, and Australia.

Residential Solar Energy Industry Segmentation

Residential solar PV consists of photovoltaic cells and is nonchemical technology that turns sunlight into energy to power household appliances and equipment. It is a rapidly growing renewable energy technology and plays a vital role in global energy transformation.

The residential solar energy market is segmented by geography. The report also covers the market size and forecasts across major regions. For each segment, the market sizing and forecasts have been done based on installed capacity (GW).

North America
United States
Canada
Rest of North America
Europe
Germany
France
United Kingdom
Italy
Spain
Russia
NORDIC
Turkey
Rest of Europe
Asia-Pacific
China
India
Japan
Australia
Malaysia
Thailand
Indonesia
Vietnam
Rest of Asia-Pacific
South America
Brazil
Argentina
Chile
Colombia
Rest of South America
Middle East and Africa
Saudi Arabia
United Arab Emirates
South Africa
Qatar
Nigeria
Egypt
Rest of Middle East and Africa
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Residential Solar Energy Market Size Summary

The residential solar energy market is poised for significant growth over the forecast period, driven by favorable government policies, increased investments in rooftop solar projects, and the declining cost of solar energy. These factors are expected to enhance the adoption of solar energy, although challenges such as limited financing options and integration difficulties in regions like Africa may restrain growth. Despite these challenges, ambitious renewable energy targets and government initiatives to increase the renewable share in energy mixes present opportunities for manufacturers and suppliers in the residential solar sector. The Asia-Pacific region is anticipated to be the fastest-growing market, fueled by rising energy demand and supportive policies in countries like India, China, and Australia.

The adoption of solar photovoltaic (PV) systems in residential sectors is primarily motivated by potential savings on electricity costs, the need for alternative energy sources, and efforts to mitigate climate change. The demand for rooftop solar PV is expected to rise due to decreasing costs, supportive government policies, and various incentives. The global residential PV capacity has seen substantial growth, with countries increasing their rooftop targets. In regions like India, government initiatives and rising electricity tariffs are encouraging the adoption of rooftop solar systems. Similarly, in China, government proposals to cover significant rooftop areas with solar panels are expected to boost demand. The market remains fragmented, with major players including Trina Solar, Canadian Solar, JinkoSolar, Hanwha Q Cells, and Tesla, contributing to the competitive landscape.

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Residential Solar Energy Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Renewable Energy Mix, Global, 2023

    3. 1.3 Residential Solar Energy Installed Capacity and Forecast, till 2029

    4. 1.4 Recent Trends and Developments

    5. 1.5 Government Policies and Regulations

    6. 1.6 Market Dynamics

      1. 1.6.1 Drivers

        1. 1.6.1.1 Favorable Government Policies

        2. 1.6.1.2 Reduced Cost of Solar Energy Systems

      2. 1.6.2 Restraints

        1. 1.6.2.1 Lack of Financing Options Coupled with Difficulties in Integrating Residential Solar PV Systems in Regions like Africa

    7. 1.7 Supply Chain Analysis

    8. 1.8 Porter's Five Forces Analysis

      1. 1.8.1 Bargaining Power of Suppliers

      2. 1.8.2 Bargaining Power of Consumers

      3. 1.8.3 Threat of New Entrants

      4. 1.8.4 Threat of Substitutes Products and Services

      5. 1.8.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION - By Geography

    1. 2.1 North America

      1. 2.1.1 United States

      2. 2.1.2 Canada

      3. 2.1.3 Rest of North America

    2. 2.2 Europe

      1. 2.2.1 Germany

      2. 2.2.2 France

      3. 2.2.3 United Kingdom

      4. 2.2.4 Italy

      5. 2.2.5 Spain

      6. 2.2.6 Russia

      7. 2.2.7 NORDIC

      8. 2.2.8 Turkey

      9. 2.2.9 Rest of Europe

    3. 2.3 Asia-Pacific

      1. 2.3.1 China

      2. 2.3.2 India

      3. 2.3.3 Japan

      4. 2.3.4 Australia

      5. 2.3.5 Malaysia

      6. 2.3.6 Thailand

      7. 2.3.7 Indonesia

      8. 2.3.8 Vietnam

      9. 2.3.9 Rest of Asia-Pacific

    4. 2.4 South America

      1. 2.4.1 Brazil

      2. 2.4.2 Argentina

      3. 2.4.3 Chile

      4. 2.4.4 Colombia

      5. 2.4.5 Rest of South America

    5. 2.5 Middle East and Africa

      1. 2.5.1 Saudi Arabia

      2. 2.5.2 United Arab Emirates

      3. 2.5.3 South Africa

      4. 2.5.4 Qatar

      5. 2.5.5 Nigeria

      6. 2.5.6 Egypt

      7. 2.5.7 Rest of Middle East and Africa

Residential Solar Energy Market Size FAQs

The Residential Solar Energy Market size is expected to reach 138.70 gigawatt in 2024 and grow at a CAGR of 6.69% to reach 190.98 gigawatt by 2029.

In 2024, the Residential Solar Energy Market size is expected to reach 138.70 gigawatt.

Residential Solar Energy Market Report Snapshots

Residential Solar Energy Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)