Global Rooftop Solar Photovoltaic (PV) Installation Market Grows at a Staggering CAGR of 14.20%

Introduction

A rooftop solar power system refers to a photovoltaic (PV) system with solar panels mounted on the roof of a commercial or residential building or structure. These include photovoltaic modules, mounting systems, cables, solar inverters, and various electrical accessories. Distributed generation. The majority of rooftop photovoltaic energy systems are grid-connected. Residential rooftop PV systems are typically 5–20 kilowatts (kW) in capacity, whereas commercial rooftop PV systems are typically 100 kW to 1 MW in capacity. Photovoltaic systems of 1–10 megawatts can be installed on extremely large roofs.

Market Dynamics 

Rising Efficiencies of Solar PV Drives the Global Market

Solar photovoltaic (PV) panels have steadily increased efficiency during the last decade. With the development of new technologies and manufacturing capabilities, this trend will likely continue throughout the foreseeable future. The most efficient solar panels commercially available have efficiency ratings of 22.8%, whereas the majority have efficiency ratings between 16% and 18%. SunPower's monocrystalline solar PV panels have the greatest efficiency rating of any commercially available solar panel brand as of September 2021.

Additionally, in May 2022, researchers at the National Renewable Energy Laboratory (NREL) of the United States Department of Energy developed a solar cell with a world-record 39.5% efficiency under 1-sun global illumination. This solar cell is anticipated to have the highest efficiency under standard 1-sun conditions. These developments are anticipated to increase the number of rooftop solar PV installations over the forecast period.

Favorable Government Policies and Incentives Creates Tremendous Opportunities

Several governments are increasing their support for adopting clean energy technologies such as rooftop solar photovoltaics to encourage the transition to the zero-net-emissions objective. The federal government provides various incentives for purchasing and installing rooftop solar PV panels in the United States. In addition, state governments have feed-in-tariff (FiT) programs for producing and distributing solar energy. The federal government provides tax credits for renewable energy projects, such as the Residential Energy Credit program.

In the US, the federal residential solar energy credit is a financial incentive program that allows homeowners to deduct a part of the cost of a solar PV system from their federal income taxes. This will support the installation of rooftop solar PV systems in the coming years, creating market expansion opportunities.

Regional Analysis

Asia-Pacific is the most significant global rooftop solar photovoltaic (PV) installation market shareholder and is expected to expand substantially during the forecast period. Asia-Pacific has been the leading market for solar energy installations in recent years. The Levelized Cost of Energy (LCOE) for solar photovoltaics (PV) decreased by more than 88 percent over the past decade. As a result, developing nations in the region, such as Indonesia, Malaysia, and Vietnam, have increased their capacity for solar energy installation. China is home to nearly 70% of the world's solar photovoltaic (PV) manufacturing capacity and the world's largest solar photovoltaic (PV) manufacturing companies and facilities.

In addition to dominating the polysilicon, ingot, and wafer manufacturing industries, which are integral to the solar panel supply chain, these companies also dominate the polysilicon, ingot, and wafer industries. This extraordinary control over the global solar PV supply chain gives Chinese manufacturers a competitive advantage over solar equipment manufacturers from other countries. As a result of the factors mentioned above, Asia-Pacific is expected to lead the market for rooftop solar PV installations during the forecast period.

Key Highlights

• The global rooftop solar photovoltaic (PV) installation market was valued at USD70 billion in 2022. It is estimated to reach USD 326.07 billion by 2031, growing at a CAGR of 14.20% during the forecast period (2023–2031).
• Based on the location of deployment, the global rooftop solar photovoltaic (PV) installation market is bifurcated into residential, commercial, and industrial. The residential segment owns the highest market share and is expected to grow substantially over the forecast period.
• Asia-Pacific is the most significant global rooftop solar photovoltaic (PV) installation market shareholder and is expected to expand substantially during the forecast period.

Competitive Players

Competitive Players

The key global rooftop solar photovoltaic (PV) installation market players are Canadian Solar, Tata Power Solar, Titan Solar Power NV, Elemental Energy, Semper Solaris, Infinity Energy, Power Home Solar LLC d/b/a Pink Energy, ReVision Energy LLC, ADT Solar, and Baker Electric Home Energy.

Recent Developments

Market News

• In July 2023, BayWa r.e. and Mercedes-Benz AG established a fruitful partnership, with BayWa r.e. developing six new photovoltaic (PV) rooftop installations. These installations are at five distinct German production locations, including Sindelfingen (two sites), Rastatt, Bremen, Hamburg, and Kolleda.
• In August 2023, Solarvest Holdings Berhad secured a new agreement with Toyo Tyre Malaysia Sdn Bhd (TTM) for the installation of a 14-megawatt-peak (MWp) rooftop solar photovoltaic (PV) system. Solarvest is well-known in the clean energy sector.

Segmentation

Global Rooftop Solar Photovoltaic (PV) Installation Market: Segmentation

By Location of Deployment

• Residential
• Commercial
• Industrial

By Regions

• North America
• Europe
• Asia-Pacific
• South America
• The Middle East and Africa