U.S. Residential Solar PV Industry Overview
The U.S. residential solar PV market size was estimated at USD 9.1 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.6% from 2021 to 2028. The market is driven by the presence of favorable policies and regulations for net metering and financial incentives such as Investment Tax Credit (ITC) in the U.S.
Decrease in solar PV (photovoltaic) installation costs in the last decade has resulted in high growth of solar PV in the U.S. Further, the presence of easy solar financing options provides a number of options for residential end-users to choose from, which has propelled the growth of the market.
The rise in environmental concerns regarding the increase in carbon emissions owing to the usage of conventional fuels for transportation and power generation purposes has prompted countries around the world to opt for cleaner and efficient sources of power. Furthermore, the long-term power generation goals of North American countries such as the U.S., Canada, and Mexico have given impetus to the growth of clean energy technologies.
Gather more insights about the market drivers, restrains and growth of the U.S. Residential Solar PV Market
For instance, the U.S. states such as California, New York, Maryland, Nevada, and Massachusetts, along with Canadian provinces such as Alberta and Ontario, have included residential solar PV systems in their current policies and action plans and have set targets for the deployment of residential solar PV systems in their respective territories. These factors have helped drive the market for residential solar PV systems in the region. Currently, the U.S. has a dominating share in the installed capacity of residential solar PV among countries in North America.
The government of Mexico has also set up an ambitious goal to reduce carbon emissions by targeting to obtain 35% of power generation from clean energy sources by 2035 and expand it to 50% by 2050. The Mexican government is emphasizing the deployment of residential solar PV in the country. For instance, Mexico had an installed capacity of 173 MW in 2015, which has increased to 4,426 MW in 2019 owing to favorable policies and regulations in the country.
Increasing demand for renewable-based clean power generation, coupled with supportive government policies, incentives, and tax rebates to install residential solar PV systems, is projected to boost the market in the region in the upcoming years. Firms in the industrial and utility sectors are among the prime consumers of solar PV in the region due to their large-scale green power requirements. The residential and commercial segments have been gaining momentum owing to the availability of net metering schemes for grid-connected systems and the availability of options to integrate battery storage systems for off-grid connected systems.
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U.S. Residential Solar PV Market Segmentation
Grand View Research has segmented the U.S. residential solar PV market on the basis of construction and state:
U.S. Residential Solar PV Construction Outlook (Volume, MW; Revenue, USD Million, 2016 - 2028)
- Retrofit
- New Construction
U.S. Residential Solar PV State Outlook (Volume, MW; Revenue, USD Million, 2016 - 2028)
- California
- New York
- Arizona
- New Jersey
- Massachusetts
- Texas
- Rest of the U.S.
Market Share Insights
- January 2021: SPI Energy announced SolarJuice American, Inc. and Petersen Dean Inc. had entered into a court-approved comprehensive interim management agreement that will allow both the companies to prepare for the sale of Petersen Dean Inc.’s assets to Solarjuice American Inc.
- October 2020: Sunrun announced that it acquired Vivint Solar. With this acquisition, the company became the leader of home solar and energy services provided across the U.S.
Key Companies profiled:
Some of the prominent players in the U.S. residential solar PV market include:
- Tesla
- SunPower Corporation
- Sunrun
- Trinity Solar Inc.
- Sungevity
- Momentum Solar
- Petersen Dean Inc.
- ACE Solar
- Sunlux
- Titan Solar Power
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