Solar lease services provide an affordable way for homeowners and businesses to access solar power without any upfront equipment costs or long term contracts. Key benefits of solar leasing include predictable energy costs, zero equipment or maintenance fees and the freedom to cancel the contract anytime. Under a solar lease, the solar panels, batteries and inverters remain the property of the lessor who handles monitoring, repairs and replacements. The global Solar Lease Service Market is estimated to be valued at US$ 14.84 Bn in 2023 and is expected to exhibit a CAGR of 18.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving growth in the solar lease service market is the higher adoption of solar leases among small businesses and homeowners who want access to cheaper and cleaner energy without large upfront costs. Unlike outright solar panel purchases which require tens of thousands of dollars of investment, solar leases have very low or zero upfront costs and fixed monthly payments that are often lower than utility bills. This has boosted the appeal of solar leases especially during economic downturns when customers want costs under control. Under solar lease contracts of 12-25 years, customers enjoy competitive electricity rates from day one and price certainty well into the future. The growing popularity of the pay-as-you-go model is expected to continue expanding the solar lease market over the forecast period.
Segment Analysis
The global solar lease service market is dominated by the residential sub-segment owing to the high adoption of rooftop solar panels in residential buildings. Solar leases have made residential solar more accessible as they remove the need for large upfront investment in panels and associated equipment. This has resulted in the residential sub-segment accounting for over 60% market share currently.
Key Takeaways
The global solar lease service market is expected to witness high growth over the forecast period of 2023 to 2030. The market size is projected to reach US$ 14.84 Bn by 2024.
Regional analysis: The Asia Pacific region is expected to be the fastest growing as well as most dominating regional market for solar lease services. This can be attributed to the presence of major solar panel manufacturers such as JinkoSolar, Trina Solar, and JA Solar in the region. Countries like China, India, Vietnam, and Japan are driving the growth of the solar industry in Asia Pacific.
Key players operating in the solar lease service market are SunPower Corporation, SolarCity Corporation, SunRun Inc., Vivint Solar Inc., Tesla Inc., JinkoSolar Holding Co. Ltd., Canadian Solar Inc., Yingli Green Energy Holding Co. Ltd., Trina Solar Limited, JA Solar Holdings Co. Ltd., Hanwha Q CELLS Co. Ltd., LONGi Solar, Risen Energy Co. Ltd., GCL-SI, Talesun, FIRST SOLAR, Lerri Solar, Kodiak Solar, Palmetto Clean Technology, Freedom Forever.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it