Global Solar Rooftop Market - Forecasts from 2024 to 2029

Global Solar Rooftop Market is estimated to grow at a CAGR of 29.17% during the forecast period to reach US$629.531 billion by 2029, from US$104.943 billion in 2022.

Solar rooftops are experiencing a surge in popularity due to their status as renewable energy source, harnessing the sun's energy and converting it into electric power. Facilitating this conversion is the integration of an interface known as an inverter, which transforms the DC power generated by rooftop solar panels into AC power, suitable for powering appliances and devices.

When considering installation on rooftops, three primary types of solar systems are commonly evaluated. On-grid systems enable the utilization of power from the grid supply when the rooftop solar system cannot meet demand.

Conversely, off-grid systems operate independently from the grid, relying solely on battery storage to power various applications.

Hybrid systems combine elements of both on-grid and off-grid systems, allowing surplus power to be fed back to the grid, and offering financial benefits to consumers when the battery is fully charged.

Driving the growth of the global solar rooftop market are shifting attitudes among consumers and businesses, who are increasingly recognizing the environmental impact of fossil fuels. Solar energy presents a clean and sustainable alternative, mitigating greenhouse gas emissions and reducing dependence on non-renewable resources.

Moreover, technological advancements and economies of scale have significantly reduced the cost of solar panels in recent years. This decline in cost renders solar energy a more financially feasible option for homeowners and businesses alike, thereby accelerating its adoption within the market.

Market Drivers:

• An increase in demand for clean and green energy is expected to boost the global solar rooftop market.

In recent years, people have adopted renewable energy as it is cost-effective, requires less maintenance, and reduces the carbon footprint cutting down greenhouse gas emissions. Moreover, the shortage of conventional sources of energy such as coal is further leading to an increase in demand for solar energy. Additionally, the increase in carbon footprint and greenhouse gas emissions is further shifting the need for solar energy. As per the United Nations, the extraction and processing of materials, fuels, and food contribute to half of the total global greenhouse gas emissions and over 90% of biodiversity loss and water stress. The photovoltaic cells in the panel absorb the sunlight and help in generating electric current.

• Favorable government policies-

The solar industry has favorable government policies providing financial incentives and subsidies for solar projects, notably in emerging economies like China, Japan, and India. However, the installation of rooftop solar panels is labor-intensive, presenting opportunities for high-quality job creation.

India has experienced a remarkable transformation in its solar energy landscape over the last five years, with installed capacity soaring from 21,651 MW to 70,096 MW by 2023. With ambitious targets and initiatives such as the Production Linked Incentive (PLI), India aims to achieve an impressive goal of 500 GW of renewable energy capacity by 2030.

In the European Union, there are plans to mandate solar installations on all new public and commercial buildings by 2026, new residential buildings by 2029, and on non-residential buildings undergoing relevant renovations by 2027. Additionally, all existing public buildings will undergo a stepwise approach to solar installations by 2030. This measure is part of the EU Solar Rooftop Strategy aimed at addressing the energy crisis.

Market Restraint:

• Several restraints are holding the market expansion-

Although the cost of solar panels is decreasing, the initial investment required for a solar rooftop system may remain significant for certain homeowners and businesses. This financial hurdle can pose a barrier to entry, particularly in areas with restricted access to financing options.

Additionally, in some regions of the world, there exists a lack of awareness regarding the advantages of solar energy and the potential cost savings it can provide. This dearth of knowledge may stem from limited educational initiatives or marketing campaigns by solar companies.

Moreover, not all rooftops are conducive to solar panel installation. Factors such as roof size, orientation, shading, and structural integrity must be carefully considered before proceeding with the installation. These considerations are essential for ensuring the effectiveness and efficiency of the solar system.

Global solar rooftop market segmentation by end-use into residential and commercial-

The global solar rooftop market can be divided based on end-use into residential and commercial sectors. In the residential segment, there is a growing trend among homeowners to decrease electricity expenses, fueled by an increasing environmental awareness that stimulates the desire for clean energy.

On the commercial front, businesses are incorporating renewable energy to enhance their brand image and showcase environmental responsibility. Additionally, companies in the commercial sector recognize substantial cost savings potential through the adoption of solar energy.

North America is anticipated to hold a significant share of the Global solar rooftop market.

North America being highly developed and urbanized consumes a great amount of electricity and conventional energy sources for power generation and consumption. Furthermore, government initiatives tax credits and incentives to those who installed rooftop solar panels are increasing the demand for rooftop solar systems in the region.

For instance, Solar systems that commence construction on or after 2022 but before 2033 and are put into service qualify for either a 30% Investment Tax Credit (ITC) or a rate of 2.75 cents per kilowatt-hour (¢/kWh).

Market Developments:

• January 2024- The Prime Minister of India presides over a session to inaugurate the "Pradhanmantri Suryodaya Yojana," envisioning the installation of rooftop solar panels on one crore households. The initiative seeks to alleviate the financial burden on low and middle-income families by lowering their electricity costs while concurrently fostering energy self-sufficiency in India.
• March 2022- DSD Renewables acquired three rooftop solar projects in New Jersey and Connecticut and other three projects in Massachusetts and Virginia from Dynamic Energy.The acquisition aimed at providing clean, renewable solar energy to unreserved communities.
• February 2022- Greenbacker Renewable Energy Company LLC which is a leading operator of sustainable infrastructure and energy efficiency projects, acquired a 16.3-MWdc operating rooftop solar portfolio in Massachusetts from ECA Solar which is a leader in commercial-scale solar development. The portfolio enabled cheaper and cleaner energy to the Greater Boston area.

Market Segmentation:

By Grid Connectivity

• On-Grid
• Off-Grid

By End-use

• Residential
• Commercial

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• UK
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• Japan
• China
• India
• Vietnam
• South Korea
• Indonesia
• Thailand
• Others