The Home Solar System Market is estimated to be valued at US$ 67.20 Bn or Mn in 2023 and is expected to exhibit a CAGR of 17.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Home solar systems use photovoltaic panels to harness the sun’s energy and convert it into electricity. They are increasingly being adopted by homeowners as a sustainable option to meet their electricity needs and reduce utility bills. Solar panels installed on rooftops can power an entire home by generating electricity during daylight hours. Any excess power generated can be exported back to the grid or stored in batteries for later use. Solar energy is clean, renewable and provides energy security by lessening dependence on fossil fuels.
Market Dynamics:
The growing environmental consciousness among consumers and supportive government policies are driving the market for home solar systems. Many countries and states now offer attractive subsidies and tax credits to encourage households to install rooftop solar panels. This has made solar power installation much more affordable. Additionally, the advancement of panel efficiency and battery storage technology has improved the reliability of solar energy as a home power source. Lithium-ion batteries in particular have enabled homes to use self-generated solar power even when the sun isn’t shining. Rising electricity bills are another factor prompting consumers to opt for solar energy to reduce their carbon footprint as well as energy costs over the long run. The emergence of innovative financing models that enable residents to access solar with no upfront costs has further stimulated demand.
Segment Analysis
The Home Solar System Market is broadly segmented into two categories: Off-Grid Systems and On-Grid Systems. On-Grid Systems dominates the market with over 80% share as most homeowners prefer connecting their solar system to the conventional power grid for reliability of power supply. This segment allows excess power generated from solar panels to be exported to the main power grid and helps offset the homeowner’s total electricity costs.
PEST Analysis
Political: Favorable government policies around the world such as tax credits, net metering, and feed-in tariffs incentivize investment in renewable energy. This is driving growth of the home solar market.
Economic: Rising electricity rates and increasing popularity of energy cost savings make solar homes an attractive investment. With solar panel prices declining significantly, the payback period has improved.
Social: Consumers are becoming increasingly environmentally conscious and prefer sustainable energy sources to reduce carbon footprint. Many view distributed solar generation as a symbol of social status.
Technological: Significant improvements have been made in solar cell efficiencies and new panel mounting technologies allow for easier installation. Advancements in battery storage and smart solar inverters are also enhancing the functionality of home solar systems.
Key Takeaways
The Global Home Solar System Market Size is expected to witness high growth, exhibiting CAGR of 17% over the forecast period, due to increasing environmental awareness among consumers. Homeowners want to reduce their carbon footprint by utilizing renewable energy.
The North American region dominates the global home solar market with over 30% share. Favorable government policies like investment tax credit along with high electricity rates drive significant solar adoption in residential sector, especially in the US.
Asia Pacific region is expected to be the fastest growing market exhibiting a CAGR of around 20% during the forecast period. Countries like China, Japan and India offer robust growth opportunities primarily due to growing middle class population, supportive initiatives for solar power, and improving economic conditions.
Key players operating in the home solar system market are SunPower Corporation, Vivint Solar, Sunrun, Tesla, LG Electronics, Panasonic Corporation, JinkoSolar, Canadian Solar, ReneSola, Trina Solar, Yingli Green Energy, SMA Solar Technology, Enphase Energy, SolarEdge Technologies, Daqo New Energy Corp, JA Solar, LONGi Green Energy Technology, Array Technologies, First Solar, REC Group. Major players are focusing on product innovations with improved solar cell technologies and battery storage to further proliferate solar adoption in residential setups worldwide.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
