Rooftop Solar PV Market

Rooftop Solar Photovoltaic (PV) Market Size (2024-2029):

The Global Rooftop Solar Photovoltaic (PV) Market was valued at US$ 123.96 billion in 2023 and is projected to reach US$ 255.07 billion by 2029, growing at a CAGR of 15.53% during the forecast period 2024-2029.

MARKET OVERVIEW:

MARKET GROWTH:

The growing adoption of rooftop solar photovoltaic (PV) solar panels in residential and commercial installations for power generation using solar energy and increasing investments from key players in the solar industry for the development of photovoltaic solar panels are the main trends observed in the global rooftop solar photovoltaic market. This growing adoption is facilitated by regulatory policies, infrastructure development, strong growth in the gross domestic product (GDP), a large consumer base, low cost of power generation, and sustainable energy needs in economies emerging like China and India.

MARKET DRIVERS:

The global rooftop solar PV market is expected to be guided by government policies and initiatives. In addition, the growing demand for photovoltaic solar panels from different regions has led to the production of inexpensive modules and thus caused the prices of solar modules to fall around the world. This is expected to further contribute to capacity additions for solar PV installations in the future. Government and private companies are expected to adopt these modules in residential and commercial establishments, thus stimulating their demand in the future.

MARKET RESTRAINTS:

Rooftop solar PV systems require capital investment and solar radiation over a significant period. The Energy Payback Time (EPBT) for 2.5kW rooftop solar systems is typically around two years, which is likely to inhibit the growth of the global rooftop solar PV market during the period forecast.

ROOFTOP SOLAR PHOTOVOLTAIC (PV) MARKET REPORT COVERAGE:

Market Segmentation:

Rooftop solar photovoltaic Market - By Technology:

• Thin Film  
• Crystalline Silicon 

The thin film segment held a dominant market share of over 37% in 2021 and is expected to grow at the highest CAGR during the outlook period. The growth can be attributed to making thin films from light and flexible materials, high durability, and narrow design. Photovoltaic solar energy for thin film roofs finds application mainly in the commercial sector, as they have lower installation costs due to their low weight. The crystalline silicon segment held a 32.4% share of the market revenue in 2021.

Rooftop solar photovoltaic Market - By Application:

• Commercial            
• Residential              
• Industrial 

The industrial sector accounted for the largest share of revenue with around 42% in 2021 and is expected to maintain its dominance during the foreseen period. Solar rooftop energy provides energy for industrial heating and cooling, which would otherwise be obtained from fossil fuels which generate harmful emissions. Increasing industrialization in developing economies is expected to significantly boost market demand during the forecast period.

The residential segment is anticipated to rise at the highest CAGR during the estimated period. Off-grid rooftop solar photovoltaics equipped with a battery energy storage system provides reliable secondary power in residential homes, driving product demand across the segment. The deployment of large-scale storage systems to protect against peak demand power changes has resulted in the adoption of an oversized rooftop solar photovoltaic system to store the desired energy in batteries.

The commercial segment accounted for 32.42% of the market revenue share in 2021. The increasing penetration of solar photovoltaic energy on the roofs of hospitals, hotels, and corporate offices, as well as the growing demand for energy centers, databases, and communications stations, are driving product demand in the business sector.

Rooftop solar photovoltaic Market - By Grid Type:

• On-Grid
• Off-Grid

The on-grid segment accounted for the largest revenue share of over 87% in 2021, as it offers the advantage of transferring the excess electricity generated to the grid and there is no need to install storage by a battery near the system source. The non-complexity of grid-connected rooftop photovoltaic systems coupled with low operation and maintenance costs will certainly generate positive demand for the market growth of the grid-connected segment.

The off-grid segment is expected to achieve the highest CAGR during the envisioned period due to increasing demand for electricity from remote locations coupled with strict regulatory regimes for distributed power generation.

Market Regional Analysis:

• North Ameria
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

The Asia-Pacific rooftop solar PV market accounted for the largest revenue share of over 33% in 2021 and is expected to continue to dominate during the conjecture period. China was the biggest contributor to revenue generation in the market. Favorable government policies offering financial incentives and subsidies for solar PV projects as well as the presence of large market players are among the important factors contributing to the growth of the market in China.

The European rooftop solar PV market captured a revenue share of over 28.47% in 2021. The UK recorded the largest revenue share in Europe. The growing trend to generate energy from renewables adds to the increase in solar PV capacity on rooftops. In addition, stringent regulatory reforms regarding the deployment of clean energy are stimulating the growth of the regional market.

North American rooftop solar PV market held a significant market share, with the United States being the main contributor to regional growth revenues. The growing need for electricity generation from clean fuels, coupled with the growing capacity of residential solar power, is expected to improve product penetration across the area in the coming years.

Impact of COVID-19 on the Rooftop Solar Pv Market:

The coronavirus pandemic is expected to severely affect the rooftop solar PV supply chain globally. Rising prices for solar panels, stagnation in international trade, material shortages, and manufacturers facing labour shortages are among the major factors negatively influencing the growth of the market. Supply chain disruption due to delayed solar projects is expected to significantly hamper the growth of the rooftop solar PV market.

Market Key Players:

1. JA Solar

2. JinkoSolar

3. SunPower Corporation

4. Shenzhen Yingli New Energy Resources Co., Ltd,

5. ReneSola

6. First Solar

Market Recent Developments:

• In April 2021, LONGi signed an agreement with the Swedish distributor Senergia for the supply of 9.2 MW of its Hi-MO4 modules. The agreement includes around 25,000 photovoltaic modules of different powers: 23,400 pieces of 370 W and 1,320 pieces of 440 W.
• In March 2021, JA Solar introduced new photovoltaic modules based on Ga-doped wafers. Ga-doped silicon wafer technology is expected to improve performance and stability in power generation.
• In February 2021, Canadian Solar announced the start of the construction of 2 solar photovoltaic projects in Japan.