Home Solar System Market Growth Trends And Forecasts (2023 - 2029)

<p>The Home Solar System Market is poised for substantial expansion, with projections indicating a surge from US$ 67.20 billion in 2023 to an estimated US$ 212.81 billion by 2029, reflecting a robust CAGR of 17.9% during the forecast

Region : 092713018101 | Price: 3450 | Report ID: 092713018101

The Home Solar System Market is poised for substantial expansion, with projections indicating a surge from US$ 67.20 billion in 2023 to an estimated US$ 212.81 billion by 2029, reflecting a robust CAGR of 17.9% during the forecast period.

A home solar system encompasses an array of components, including solar panels, batteries, inverters, and other electrical elements, enabling homeowners to generate, store, and utilize solar power within their residences. The global market is experiencing accelerated growth, driven by the increasing adoption of rooftop solar photovoltaic (PV) systems in residential structures. Key drivers fueling the adoption of home solar systems encompass the diminishing costs of solar components, supportive government policies, escalating electricity prices, and heightened environmental consciousness.

Regional Insights into the Home Solar System Market:

  1. Asia-Pacific: This region emerges as the largest market for home solar systems, commanding a share exceeding 40% of the global market in 2023. Growth in this region is attributed to factors such as burgeoning government incentives, heightened awareness of solar energy, and the decreasing costs of solar panels. China leads the home solar system market in Asia-Pacific, followed by India, Japan, and South Korea.

  2. North America: The North American market for home solar systems ranks as the second-largest globally, contributing to approximately 30% of the global market in 2023. Growth in this region is driven by factors including expanding government incentives, favorable policies, and a surging demand for renewable energy sources. The United States leads the way in the North American home solar system market, followed by Canada and Mexico.

  3. Europe: The European market for home solar systems ranks as the third-largest globally, accounting for approximately 20% of the global market share in 2023. Market growth in Europe is propelled by factors such as increasing government incentives, heightened awareness of solar energy benefits, and the decreasing costs of solar panels. Germany holds the top position in the European home solar system market, followed by Italy, France, and the United Kingdom.

The home solar system market is set to undergo remarkable expansion driven by these regional dynamics and an increasing global shift towards renewable energy sources.

Drivers of the Home Solar System Market:

  1. Cost Reduction in Solar PV Systems: The expenses associated with solar photovoltaic (PV) systems, encompassing solar panels, inverters, and related components, have witnessed a remarkable decline over the past decade. This reduction is attributed to advancements in solar cell technologies, the scalability of manufacturing, and increased supply chain efficiencies. The levelized cost of electricity generated by residential solar PV systems has decreased by more than 70% since 2010. As solar power achieves cost parity with traditional energy sources in an expanding number of regions, homeowners are increasingly viewing solar as an economically viable means to meet their electricity needs and reduce reliance on conventional utilities. The significant cost reduction serves as a pivotal driver fostering the adoption of rooftop solar and propelling the growth of the home solar system market worldwide.

  2. Supportive Government Policies and Incentives: Governments worldwide have implemented a spectrum of policy measures and financial incentives to expedite the deployment of residential solar energy systems. These initiatives encompass capital subsidies, feed-in tariffs, renewable portfolio standards, net metering, and solar renewable energy credits. For example, the U.S. federal solar tax credit enables homeowners to deduct 26% of the solar system installation cost from their tax obligations. Such incentives, coupled with mandates for renewable energy procurement, render home solar power an enticing option, overcoming financial barriers and catalyzing market expansion.

  3. Technological Innovations in Solar Technologies: Ongoing developments in solar cell, module, and system technologies are contributing to heightened efficiencies, enhanced reliability, and reduced costs, rendering home solar solutions increasingly viable. Innovations such as PERC, heterojunction, bifacial, and other high-efficiency solar cells have pushed module efficiency beyond the 20% threshold. Smart modules equipped with integrated microchips facilitate superior energy yield monitoring and outage management. The expansion of battery storage capacities, the integration of smart inverters, and electric vehicle (EV) compatibility are also propelling technological enhancements within the home solar ecosystem.

  4. Escalating Electricity Costs and Demand: The ascent of retail electricity prices, coupled with growing energy consumption in residential structures, driven by economic growth, rising incomes, and improved electricity access, is fueling the demand for solar energy systems among homeowners. With the promise of long-term savings on monthly energy bills, solar power empowers consumers to hedge against the effects of energy inflation and recurring fuel expenses. This consumer-driven pull is poised to persist, given the outlook for sustained increases in electricity prices, stimulating the adoption of rooftop solar systems.

Opportunities in the Home Solar System Market:

  1. Emergence of Battery Storage Systems: The integration of solar power systems with energy storage solutions opens up exciting opportunities for the growth of home solar. This technology allows residential consumers to store surplus solar energy during daylight hours for later use when sunlight is unavailable, enhancing solar energy self-sufficiency and providing backup power during grid outages. The declining costs and improved performance of lithium-ion and other emerging battery technologies, along with evolving business models like solar+storage as a service, will drive the adoption of integrated solar and storage solutions.

  2. Off-grid Applications: Home solar systems offer a promising solution for decentralized energy access, particularly for those living in remote areas with unreliable grid connections. Advancements in standalone solar systems, DC appliances, and productive use applications enable affordable off-grid electrification. Government initiatives that support solar deployments in unelectrified homes and communities in developing nations create substantial opportunities for the off-grid home solar market segment.

  3. Integration with Smart Technologies: The convergence of solar systems with artificial intelligence, big data analytics, IoT, and smart home technologies unlocks new capabilities for homeowners. Smart solar monitoring, predictive maintenance, voice-assisted controls, and automated appliance management will drive more efficient utilization of solar energy. Solar+storage integrated with home energy management systems and electric vehicle (EV) charging enables customized solutions, expanding the use cases for home solar.

  4. Peer-to-peer Solar Energy Trading: Peer-to-peer solar trading enables rooftop solar panel owners to sell excess electricity directly to their neighbors. Blockchain-enabled distributed ledger technologies facilitate decentralized energy transactions between prosumers and consumers. This creates opportunities for home solar owners to join a local shared solar community and monetize surplus solar power, enhancing the return on investment. Startups pioneering peer-to-peer energy trading networks could accelerate its adoption.

Trends in the Home Solar System Market:

  1. Solar Leasing and Shared Solar Ownership Models: The rise of third-party solar leasing and solar power purchase agreement (PPA) models has mitigated ownership-related barriers that once hindered on-site solar installations for homeowners. Under a solar lease, homeowners can install solar panels on their rooftops with minimal upfront costs and pay for the systems through monthly lease payments to a solar leasing company. Shared or community solar enables households to subscribe to offsite solar arrays and receive credits on their electricity bills. These innovative models reduce financial hurdles, making solar access more accessible for homeowners.

  2. Solar Shingles and Building Integrated Products (BIPV): Emerging alternatives to traditional rack-mounted modules include integrated solar shingles, tiles, and roofing materials that replace conventional building materials used in residential roofing. BIPV products, such as solar shingles made of flexible thin-film PV laminates, provide aesthetically pleasing, unobtrusive rooftop solar installations. While costs are currently relatively high, increased adoption of BIPV technologies is expected to improve economies of scale.

  3. Residential Community Solar and Solar Districts: Developers are increasingly incorporating solar energy solutions into residential communities, neighborhoods, and large-scale housing projects during construction. Pre-installed rooftop solar systems or shared ground-mounted solar farms serve the energy needs of the entire residential community, generating clean power for all homes. Planned solar districts represent a promising trend benefiting both builders and homeowners.

  4. Solar Storage Retrofits for Existing Home Solar Systems: Retrofitting battery storage systems to existing residential solar PV systems is gaining momentum as a key trend. Homeowners with already installed solar panels are adding batteries to maximize the utilization of solar energy. Companies are offering retrofit options and new capabilities such as smart energy management for previously installed solar+storage systems. Retrofits help homeowners extract greater value from their existing solar infrastructure.

Challenges in the Home Solar System Market:

High Initial Costs and Extended Payback Periods: Despite the decreasing costs of solar photovoltaic (PV) technology, the substantial upfront investment required for the installation of comprehensive solar systems remains a significant hurdle to adoption. Additional expenses related to roof modifications, electrical work, permits, and labor costs contribute to the overall price homeowners must bear. The extended payback period, typically exceeding 4-8 years on the initial investment, can dampen consumer enthusiasm for on-site solar installations.

Solar Power Generation Intermittency: The intermittent nature of solar energy generation, influenced by diurnal cycles and unpredictable weather conditions like cloud cover, restricts the applicability of rooftop solar systems for homeowners. Unlike the continuous electricity supply from the grid, rooftop solar systems cannot guarantee a consistent power supply. This limitation becomes particularly pronounced in regions without net metering policies, further impeding adoption.

Infrastructure Challenges and Limited Roof Space: The lack of robust transmission and distribution infrastructure for the integration of decentralized renewable power, along with the absence of net metering facilities in certain parts of developing countries, slows down the growth of the home solar market. Constraints related to suitable roof space, structural considerations, and ownership complexities in high-rise apartment buildings also hinder installations. Additionally, the lack of product standardization and challenges in securing financing for solar projects impact adoption rates.

Recent Developments in the Home Solar System Industry:

New Product Launches: • In January 2022, Tesla unveiled its Solar Roof V3, an integrated solar panel shingle roof with enhanced efficiency and simplified installation. This product aims to make solar an appealing and integrated roofing option for homeowners. • In June 2021, SunPower introduced its Equinox home solar system, incorporating intelligent technology to maximize energy production. The system is accompanied by SunVault storage and the mySunPower app for homeowners. • In May 2020, LG Electronics presented its NeON R solar panel for the residential market, offering improved temperature performance and power output.

Acquisitions and Partnerships: • In August 2022, Sunrun acquired Sunfolio, a company specializing in residential solar and home energy management. This acquisition enabled Sunrun to expand its operations in key western states in the U.S. • In July 2021, SunPower partnered with Woodside Homes, one of the top U.S. homebuilders, to provide its Equinox Solar Systems in new home communities. • In June 2020, Sunrun acquired Vivint Solar, a prominent residential solar and smart home company. This acquisition created one of the leading home solar and energy services companies in the industry.

Top companies in Home Solar System Market

SunPower Corporation

Vivint Solar



LG Electronics

Panasonic Corporation


Canadian Solar


Trina Solar

Yingli Green Energy

SMA Solar Technology

Enphase Energy

SolarEdge Technologies

Daqo New Energy Corp

JA Solar

LONGi Green Energy Technology

Array Technologies

First Solar

REC Group

1 Market Overview
1.1 Introduction
1.2 Market Analysis by Type
1.2.1 Overview: Global Revenue by Type: 2022 Versus 2023 Versus 2029
1.3 Market Analysis by Application
1.3.1 Overview: Global Revenue by Application: 2022 Versus 2023 Versus 2029
1.4 Global Market Size & Forecast
1.4.1 Global Sales in Value (2017-2029))
1.4.2 Global Sales in Volume (2017-2029)
1.4.3 Global Price by Type (2017-2029) & (US$/Unit)
1.5 Global Production Capacity Analysis
1.5.1 Global Total Production Capacity (2017-2029)
1.5.2 Global Production Capacity by Geographic Region
1.6 Market Drivers, Restraints and Trends
1.6.1 Market Drivers
1.6.2 Market Restraints
1.6.3 Trends Analysis
2 Manufacturers Profiles
**This is for each company**
2.1.1 Company Details
2.1.2 Company Major Business
2.1.3 Company Product and Services
2.1.4 Company Sales, Price, Revenue, Gross Margin and Market Share (2019-2022)
3 Sales by Manufacturer
3.1 Global Sales in Volume by Manufacturer (2020-2022)
3.2 Global Revenue by Manufacturer (2020-2022)
3.3 Key Manufacturer Position in Market
3.4 Market Concentration Rate
3.4.1 Top 3 Manufacturer Market Share
3.4.2 Top 6 Manufacturer Market Share
3.5 Global Production Capacity by Company
3.6 Manufacturer by Geography: Head Office and Production Site
3.7 New Entrant and Capacity Expansion Plans
3.8 Mergers & Acquisitions
4 Market Analysis by Region
4.1 Global Market Size by Region
4.1.1 Global Sales in Volume by Region (2017-2029)
4.1.2 Global Revenue by Region (2017-2029)
4.2 North America Revenue (2017-2029)
4.3 Europe Revenue (2017-2029)
4.4 Asia-Pacific Revenue (2017-2029)
4.5 South America Revenue (2017-2029)
4.6 Middle East and Africa Revenue (2017-2029)
5 Market Segment by Type
5.1 Global Sales in Volume by Type (2017-2029)
5.2 Global Revenue by Type (2017-2029)
5.3 Global Price by Type (2017-2029)
6 Market Segment by Application
6.1 Global Sales in Volume by Application (2017-2029)
6.2 Global Revenue by Application (2017-2029)
6.3 Global Price by Application (2017-2029)
7 North America by Country, by Type, and by Application
7.1 North America Sales by Type (2017-2029)
7.2 North America Sales by Application (2017-2029)
7.3 North America Market Size by Country
7.3.1 North America Sales in Volume by Country (2017-2029)
7.3.2 North America Revenue by Country (2017-2029)
7.3.3 United States Market Size and Forecast (2017-2029)
7.3.4 Canada Market Size and Forecast (2017-2029)
7.3.5 Mexico Market Size and Forecast (2017-2029)
8 Europe by Country, by Type, and by Application
8.1 Europe Sales by Type (2017-2029)
8.2 Europe Sales by Application (2017-2029)
8.3 Europe Market Size by Country
8.3.1 Europe Sales in Volume by Country (2017-2029)
8.3.2 Europe Revenue by Country (2017-2029)
8.3.3 Germany Market Size and Forecast (2017-2029)
8.3.4 France Market Size and Forecast (2017-2029)
8.3.5 United Kingdom Market Size and Forecast (2017-2029)
8.3.6 Russia Market Size and Forecast (2017-2029)
8.3.7 Italy Market Size and Forecast (2017-2029)
9 Asia-Pacific by Country, by Type, and by Application
9.1 Asia-Pacific Sales by Type (2017-2029)
9.2 Asia-Pacific Sales by Application (2017-2029)
9.3 Asia-Pacific Market Size by Region
9.3.1 Asia-Pacific Sales in Volume by Region (2017-2029)
9.3.2 Asia-Pacific Revenue by Region (2017-2029)
9.3.3 China Market Size and Forecast (2017-2029)
9.3.4 Japan Market Size and Forecast (2017-2029)
9.3.5 Korea Market Size and Forecast (2017-2029)
9.3.6 India Market Size and Forecast (2017-2029)
9.3.7 Southeast Asia Market Size and Forecast (2017-2029)
9.3.8 Australia Market Size and Forecast (2017-2029)
10 South America by Country, by Type, and by Application
10.1 South America Sales by Type (2017-2029)
10.2 South America Sales by Application (2017-2029)
10.3 South America Market Size by Country
10.3.1 South America Sales in Volume by Country (2017-2029)
10.3.2 South America Revenue by Country (2017-2029)
10.3.3 Brazil Market Size and Forecast (2017-2029)
10.3.4 Argentina Market Size and Forecast (2017-2029)
11 Middle East & Africa by Country, by Type, and by Application
11.1 Middle East & Africa Sales by Type (2017-2029)
11.2 Middle East & Africa Sales by Application (2017-2029)
11.3 Middle East & Africa Market Size by Country
11.3.1 Middle East & Africa Sales in Volume by Country (2017-2029)
11.3.2 Middle East & Africa Revenue by Country (2017-2029)
11.3.3 Turkey Market Size and Forecast (2017-2029)
11.3.4 Egypt Market Size and Forecast (2017-2029)
11.3.5 Saudi Arabia Market Size and Forecast (2017-2029)
11.3.6 South Africa Market Size and Forecast (2017-2029)
12 Sales Channel, Distributors, Traders and Dealers
12.1 Sales Channel
12.1.1 Direct Marketing
12.1.2 Indirect Marketing
12.2 Typical Distributors
12.3 Typical Customers
13 Research Findings and Conclusion
14 Appendix
14.1 Methodology
14.2 Research Process and Data Source
14.3 Disclaimer


Research Methodology


Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.

Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.

The market engineering phase involves analysing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.

The market engineered data is verified and validated by a number of experts, both in-house and external.

After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.