Market Trends of Residential Solar Energy Industry
Increasing Rooftop Solar Installations to Drive the Market
- The increasing adoption of solar PV systems 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 demand for rooftop solar PV is expected to increase due to decreasing solar PV costs, supportive government policies for residential solar PV, FIT programs and incentives, and various solar energy targets.
- The cost of electricity for residential rooftop solar PV applications has rapidly declined in recent years. The falling price has resulted in a massive increase in the residential PV capacity globally. Many countries are increasing their residential rooftop targets.
- The Solar Energy Industry Association (SEIA) statistics show that, in 2022, residential solar PV installed capacity in the United States accounted for about 5.08 GW. The total installed capacity grew by 23% compared to the previous year.
- According to the SEIA report for Q3 2022, the US residential segment had a historic quarter with 1.57 GW dc installed, a 43% increase over Q3 2021 and a 16% increase over Q2 2022. California made up 36% of this total as installers continue to push to sell residential solar before changes to current net metering rates.
- A European Joint Research Centre analysis shows that EU rooftop PV could produce 680 TWh of solar electricity annually.
- In Germany, according to the coalition agreement, it will become compulsory at the national level to install solar PV on commercial buildings, and it will become a standard rule for new residential buildings.
- All such factors have driven the demand for residential solar energy over the study period.
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Asia-Pacific to Dominate the Market
- Asia-Pacific accounted for more than 30% of the global residential solar PV market and is expected to continue its dominance during the forecast period.
- India's solar PV installed capacity increased significantly from 49.3 GW in 2021 to 62.8 GW in 2022. The power is further expected to increase in the coming years.
- By the end of 2023, the Chinese government proposed to cover 50% of rooftop space with solar panels on party and government buildings, 40% of schools, hospitals, and other public facilities, 30% of industrial and commercial areas, and 20% of rural households. A total of 676 counties from 31 provinces have registered for the scheme.
- The Ministry of New and Renewable Energy (MNRE) grid-connected rooftop solar program aims to offer a 40% subsidy for the first 3 kW of generation capacity in rooftop systems and a 20% subsidy up to a 10 kW ceiling.
- Owing to these factors, the demand for residential solar energy is expected to increase in the Asia-Pacific region over the forecast period.
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