Residential Solar Energy Market - Growth, Trends, and Forecast (2020-2025)
The market is segmented by Geography (North America, Europe, Asia-Pacific, South America and Middle-East and Africa)
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Scope of the Report
Key Market Trends
TABLE OF CONTENTS
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The residential solar market is expected to grow at a CAGR of over 12% during the period of 2020-2025. The declining cost of solar photovoltaic (PV) systems owing to technological upgradations and competition in the market, globally, has been driving the demand for the residential solar energy market over the study period. However, the lack of financing options less attractive for residential customers has been restraining the growth in the demand for residential solar energy.
The technological advancements and upgradations in the residential solar energy market, which reduces the cost of modules is expected to act as an opportunity for residential solar energy market.
Asia-Pacific is estimated to have the maximum share of the residential solar energy market, in 2018, and is expected to be the fastest growing region during the forecast period, primarily due to the increasing demand for clean electricity from major developing countries such as China, India and ASEAN countries, over the forecast period.
Scope of the Report
The residential solar energy market report include:
Middle-East and Africa
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Key Market Trends
Increasing Rooftop Solar Installations to Drive the Market
The increasing adoption of solar photovoltaic in the residential sector is primarily driven by expected savings in electricity costs, the need for an alternative source of electricity, and the desire to mitigate climate change risk.
During the forecast period, the share of the rooftop solar PV is expected to increase, on account of decreasing solar PV costs, supportive government policies for residential solar PV, FIT programs and incentives, and targets set by various governments for solar energy.
The costs of electricity from residential rooftop solar PV have witnessed a rapid decline in the recent years. In just past over six years, costs have fallen by around 45% in California and 66% in Germany.
The cost reductions are driven by continuous technological improvements, including higher solar PV module efficiencies. The industrialization of these highly modular technologies has yielded impressive benefits, from economies of scale and greater competition to improved manufacturing processes and competitive supply chains.
All the above-mentioned factors have been driving the demand for residential solar energy over the study period.
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Asia-Pacific to Dominate the Market
Asia-Pacific is expected to dominate the residential solar energy market and to grow at fastest rate over the forecast period.
The government of India has put in favorable policies, like 30% subsidies for the solar system installation, including residential installations.
In India, the residential PV installation cost is estimated to be at USD 1000 per KW, which is higher, when compared to its commercial counterpart (USD 692 per KW). However, the Indian costs of installations are cheaper, when compared to the global average for both residential (USD 1638 per KW) and commercial (USD 1379 per KW).
China, is the largest producer and consumer of solar PV which accounts to around half of the production of solar PV globally. The increasing concerns over clean electricity in the country has been driving the demand for the installation of residential solar energy.
In 2017, the South Korean government decided that in Seoul, the country’s capital, it will implement solar panels in one-third of all the households by 2022. This has been driving the increase in the existing solar capacity, by about ten times. According to the plan, all new buildings would be required to install solar PV. Meanwhile, the existing buildings would be offered incentives to opt for solar PV. Furthermore, it is estimated that about 1 million solar power systems would be deployed in Seoul by 2022, among the 630,000 apartment verandas, 150,000 houses, and 220,000 buildings.
Owing to above mentioned scenario, the demand for residential solar energy is expected to increase over the forecast period in the region.
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The global residential solar energy market is fragmented, due to numerous companies operating in the industry. Some of the key players in this market include Trina Solar Limited, Canadian Solar Inc., Jinko Solar, Hanwha Q Cells Co. Ltd and Solarcity.