Description of the Report
It is estimated that the U.S. residential solar PV market was estimated approximately USD 9.1 billion by 2020. It is expected to grow by a compound annual growth percentage (CAGR) in the range of 5.6 percent from 2021 until 2028. This market’s growth is driven by the existence of favorable laws and regulations regarding net metering and financial incentives, such as Investment Tax Credit (ITC) in the U.S.
A decrease in solar PV(photovoltaic) installation costs over the past decade has led to a rapid rise in solar PV installations throughout the U.S. Additionally; there are a variety of financing options for solar provides many choices for homeowners to select between, which have helped propel the development in the solar PV market.
The rising environmental concern concerning the increasing carbon emissions due to the burning of traditional fuels for power and transportation generation has led countries across the globe to look for more sustainable and more efficient sources of energy. In addition, the long-term power-generation objectives pursued by North American countries such as the U.S., Canada, and Mexico have fueled the expansion of clean energy technology.
For instance, U.S. states such as California, New York, Maryland, Nevada, and Massachusetts and Canadian provinces, such as Alberta and Ontario, include residential PV solar systems in their current plans and policies. They have established targets for installing solar PV systems for residential use within their respective jurisdictions. These factors have boosted the region’s demand for residential PV solar systems. Currently, the U.S. has a dominating percentage of power generation capacity for residential PV systems among nations located in North America.
The Mexican government of Mexico has also established ambitious goals to cut down on carbon emissions. The goal is to obtain 35% of the power generated using renewable energy sources by 2035. Then, increase the percentage to 50 percent by 2050. In addition, the Mexican government is pushing to use solar panels for residential PV throughout the country. For example, Mexico’s installed capacity of 173 MW as of 2015 rose to 4,426 MW in 2019. due to the favorable policies and rules within the country.
Growing demand for renewable-based clean power generation, along with government policies that support it, such as incentives and tax credits to purchase residential solar PV systems, is expected to increase the market in the region over the next few years. Businesses operating in the utility and industrial industries are some of the top solar power customers in this region because of their huge-scale requirements for green power. Commercial and residential segments have seen a rise in popularity due to the existence of net metering systems for grid-connected systems and the options available to incorporate battery storage systems into off-grid-connected plans.
The retrofit segment was the market’s most dominant and responsible for the largest share of revenue of 72.6 percent in 2020. This large share can be attributed to the growing environmental concerns that have led regulators to create guidelines and plans for residential solar PV systems nationwide.
The regulatory authorities are focusing on the benefits of solar PV installations in residential structures. This has led to regulators’ development of guidelines and plans regarding residential solar PV installations in the U.S. For instance, the solar Investment Tax Credit (ITC), enacted in 2006, is one of the central policies influencing solar PV installations across the U.S.
Presently, ITC provides a 26.0 percent tax credit for installing solar panels on homes subject to Section 25D. Tax credits under the scheme will result in a decrease in the amount of income tax the person otherwise pays to the government. This has made it easier for homeowners who want to opt to install solar PV units to benefit from tax incentives. But the government plans to reduce ITC to 22 percent for residential customers until 2023. They also plan to eliminate ITC for residential customers in 2024 and beyond and are likely to limit the expansion of the market for retrofits.
Report Coverage & Deliverables
PDF report & online dashboard will help you understand:
- Competitive benchmarking
- Historical data and forecasts
- Revenue shares of the company
- Opportunities in the region
- Latest trends & dynamics
California was the most dominant state in California, dominating the U.S. residential solar PV market, and was responsible for the highest revenue share of 33.3 percent in 2020. It is one of the most solar markets across the U.S. owing to the various environmental and economic advantages, including numerous local investments that will increase the solar PV installation of homes within the state. Today over twenty percent of the state’s energy generation is generated by solar energy.
The existence of favorable regulations and policies such as net metering of solar PV systems in the state is the main reason for its dominant position in the market. Additionally, the availability of numerous incentives to residential customers for installing solar panels has allowed the market within the state.
New York has a substantial solar energy capacity and is consistently among the top 10 states in the U.S. solar PV market. The state has a variety of policies to encourage investment in solar energy. This includes net metering and feed-in tariffs through the Long Island Power Authority. With its Reforming the Energy Vision docket, the Energy Commission is reviewing the regulations and creating the environment to promote the efficiency of the power system, including the widespread distribution of distributed generation.
Key Companies and Market Share Insights
In October of 2020, Sunrun announced that it purchased Vivint Solar. Through this acquisition, Sunrun has become the leading provider of home solar and energy solutions available throughout the U.S.In January 2021, SPI Energy announced that Solar Juice American, Inc. and Petersen Dean Inc. had signed an agreement with a court that was approved as an interim management agreement. This will enable both companies to plan for the transfer of Petersen Dean Inc.s assets to Solar juice American Inc. Some of the most prominent companies that are in the U.S. residential solar PV market are:
- SunPower Corporation
- Trinity Solar Inc.
- Momentum Solar
- Petersen Dean Inc.
- ACE Solar
- Titan Solar Power
U.S. Residential Solar PV Market Report Scope
|Market size value in 2021||USD 10.4 billion|
|Revenue forecast in 2028||USD 14.1 billion|
|Growth Rate||CAGR of 5.6% from 2021 to 2028|
|Base year for estimation||2020|
|Historical data||2016 – 2019|
|Forecast period||2021 – 2028|
|Quantitative units||Volume in MW, revenue in USD million, and CAGR from 2021 to 2028|
|Report coverage||Volume forecast, revenue forecast, company ranking, competitive landscape, growth factors, and trends|
|Segments covered||Construction, state|
|State scope||California; New York; Arizona; New Jersey; Massachusetts; Texas; Rest of the U.S.|
|Key companies profiled||Tesla; SunPower Corporation; Sunrun; Trinity Solar Inc.; Sungevity; Momentum Solar; Petersen Dean Inc.; ACE Solar; Sunlux; Titan Solar Power|
|Customization scope||Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.|
|Pricing and purchase options||Customized purchase options are available to suit your specific requirements for research.|
Segments covered by the Report
This Report projects the growth of volume and revenue at a country-wide level and provides an analysis of current trends in the industry across all of the sub-segments starting in 2016 until 2028. For this Report, Grand View Research has classified into sub-segments of the U.S. residential solar PV market report based on the state of construction:
- Construction Outlook (Volume, (MW and (Revenue, USD Million, 2016 to 2028)
- New Construction
- State Outlook (Volume MW, (MW and revenue, USD Million, 2016 to 2028)
- North America
- The Netherlands
- Czech Republic
- Rest of Europe
- Asia Pacific
- South Korea
- Australia & New Zealand
- Rest of Asia Pacific
- South America
- Rest of South America
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Northern Africa
- Rest of MEA
- North America