HOME SOLAR SYSTEM MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Home Solar System Market Size and Trends

The home solar system market size is expected to reach US$ 212.81 Bn by 2030, from US$ 67.20 Bn in 2023, exhibiting  a compound annual growth rate (CAGR) of 17.9% during the forecast period.

A home solar system consists of solar panels, batteries, inverters, and other electrical components that allow homeowners to generate, store, and consume solar power in their houses. Growing adoption of rooftop solar Photovoltaic System in residential buildings is driving the market growth globally. The key factors propelling the uptake of home solar systems include declining costs of solar components, favorable government policies, rising electricity prices, and increased environmental awareness.

Home Solar System Market Trends

• Solar leasing and shared solar ownership models: Emergence of third-party solar leasing and solar PPA models have mitigated ownership-related barriers limiting on-site solar installations for homeowners. Under a solar lease, homeowners can install solar panels on their rooftop with low upfront costs and pay for the systems through monthly lease payments to a solar leasing company. Shared or community solar allows households to subscribe to offsite solar arrays and obtain credits on their electricity bills. These innovative models reduce financial burdens, thus making solar access easier for homeowners. For instances, according to Department of Energy's report in 2021, 30 states in the U.S. has shared solar programs with over 3,000 MW of shared solar capacity installed, which increased 500 MW in 2015.
• Solar shingles and building integrated products: An emerging alternative to rack-mounted modules are integrated solar shingles, tiles, and roofs which replace conventional building materials that are used in residential roofing. BIPV products such as solar shingles made of flexible thin-film PV laminates provide an aesthetically pleasing and unobtrusive rooftop solar installation. While costs are high, increased adoption of BIPV technologies would improve economies of scale. For instances, according to the United States Department of Energy's 2021 Solar Futures Study, building integrated photovoltaics are expected to grow significantly and account for approximately 40% of new U.S.
• Residential community solar and solar districts: Developers are increasingly integrating solar energy solutions across residential communities, neighborhoods and large-scale housing projects during construction itself. Pre-installed rooftop solar systems or shared ground-mounted solar farms built to serve energy needs of the entire residential community generate clean power for all homes. Planned solar districts represent a promising trend benefitting both builders and homeowners.
• Solar storage retrofits for existing home solar systems: Retrofitting battery storage systems to existing residential solar PV systems is rising as a key trend. Homeowners with already installed solar panels are adding batteries to maximize solar energy utilization. Companies are offering retrofit options and new capabilities like smart energy management for previously installed solar+storage systems. Retrofits help in harvesting greater value from solar infrastructure.