U.S. Solar PV Market (By Application: Residential, Non-residential, Utility) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The U.S. solar PV market size was estimated at USD 34.63 billion in 2023 and it is expected to surpass around USD 125.26 billion by 2033, poised to grow at a CAGR of 13.72% from 2024 to 2033.

Key Pointers

• By Application, the utility segment registered the maximum market share of 67% in 2023.
• By Application, the residential segment is expected to grow at the notable CAGR of 13.95% between 2024 to 2033. 

U.S. Solar PV Market Overview 

The U.S. solar photovoltaic (PV) market stands as a beacon of innovation and sustainability in the realm of renewable energy. With advancements in technology, supportive policies, and increasing environmental consciousness, solar PV has become a cornerstone of the nation's energy transition. This overview provides a detailed insight into the current landscape of the U.S. solar PV market, shedding light on its key components, market size, growth trends, and the factors driving its expansion.

U.S. Solar PV Market Growth 

The growth of the U.S. Solar PV market can be attributed to several key factors. Firstly, robust government incentives and policies have significantly reduced the financial barriers for both residential and commercial consumers, making solar PV installations more accessible and appealing. Additionally, advancements in solar technology, including the development of more efficient and affordable solar panels, have bolstered the market. Rising environmental awareness and the global push towards sustainable energy solutions have further accelerated the adoption of solar PV systems. Moreover, increased investment in research and development has led to innovations in energy storage solutions, addressing the intermittent nature of solar power and enhancing grid stability. These factors, combined, have created a favorable environment for the widespread growth of the U.S. Solar PV market, making it a leading player in the renewable energy sector.

Report Scope of the U.S. Solar PV Market

U.S. Solar PV Market Dynamics

Drivers

• Grid Modernization: Solar PV systems play a role in modernizing the electricity grid. Distributed solar installations contribute to a more resilient and efficient grid infrastructure, reducing transmission losses and enhancing overall grid stability.
• Corporate Initiatives: Many corporations are adopting solar PV as part of their sustainability initiatives. Large companies are investing in solar installations to reduce their carbon footprint and demonstrate environmental responsibility, thereby contributing to market growth.

Restraints

• Land Use and Environmental Impact: Utility-scale solar projects require vast land areas. Balancing the need for renewable energy development with concerns about land use, biodiversity, and environmental impact, including habitat disruption and water usage, poses a significant challenge in expanding solar PV capacity.
• Supply Chain Disruptions: The solar industry relies on a global supply chain for components like solar panels, inverters, and batteries. Disruptions in the supply chain, whether due to geopolitical tensions, trade disputes, or natural disasters, can impact the availability and cost of these components, affecting project timelines and costs.

Opportunities

• Electrification of Transportation: The increasing shift towards electric vehicles (EVs) presents a significant opportunity for the solar PV market. Solar-powered EV charging stations can utilize clean energy to charge vehicles, reducing the carbon footprint of transportation and creating a new market for solar energy integration.
• Community Solar Programs: Community solar initiatives allow individuals and businesses to subscribe to a shared solar facility. These programs enable consumers without suitable roof space or financial means to benefit from solar energy. Expanding such programs creates a broader customer base for solar PV installations.

Application Insights

The utility segment held the largest revenue share of 67% in 2023. Utility companies across the country are increasingly turning to solar PV as a reliable source of renewable energy, contributing significantly to the reduction of greenhouse gas emissions and meeting the escalating energy demands of the nation. The advantage of utility-scale solar lies in its ability to produce electricity at a scale capable of powering thousands of homes and businesses, thereby driving the transition towards a more sustainable energy infrastructure. Additionally, utility-scale solar projects have become economically competitive, attracting investments from both public and private sectors, further fueling the expansion of solar energy generation across the country.

The residential segment is anticipated to grow at the fastest CAGR of 13.95% during forecast period. The residential solar PV applications have become increasingly prevalent in the United States. Homeowners are embracing solar energy as a viable solution to reduce electricity costs while contributing to environmental conservation. Residential solar PV systems, typically installed on rooftops, harness sunlight and convert it into electricity for domestic use. Advancements in solar technology have made these systems more efficient and affordable, making solar PV installations an attractive option for homeowners seeking energy independence and sustainability. Federal and state-level incentives, such as tax credits and net metering programs, have further incentivized residential solar adoption, allowing homeowners to sell excess electricity back to the grid, thus enhancing the overall economic feasibility of residential solar installations. The residential sector's enthusiasm for solar PV reflects a growing trend towards decentralized energy production, empowering individual households to actively participate in the shift towards renewable energy sources.

U.S. Solar PV Market Key Companies

• First Solar
• SunPower
• Suniva
• 1Soltech
• Sharp
• Alps Technology
• Advance power
• Auxin solar
• BORG Inc.
• Pionis Energy

U.S. Solar PV Market Report Segmentations:

By Application

• Residential
• Non-residential
• Utility