US Solar Energy Market Size
|2020 - 2029
|Base Year For Estimation
|Forecast Data Period
|2024 - 2029
|Historical Data Period
|2020 - 2022
*Disclaimer: Major Players sorted in no particular order
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US Solar Energy Market Analysis
The United States solar energy market is estimated to be at 164.2 Giga Watt (GW) by the end of this year and is projected to reach 352 Giga Watt (GW) after five years, registering a CAGR of over 16.48% during the forecast period.
- Over the medium term, factors such as declining solar PV costs and supportive government policies are expected to drive the United States solar energy market during the forecast period.
- On the other hand, increasing adoption of alternative clean energy sources and increasing natural gas consumption are expected to hinder the market's growth during the forecast period.
- Nevertheless, Perovskite-based cells attracted attention in recent years. Perovskite-based PV cells offer high ease of manufacturing, high efficiency, and excellent semiconducting behaviour. Hence, they are comparable to silicon-based solar PV regarding solar-to-electric efficiency. Hence, technological advancements in manufacturing PV cells will likely lead to mass-scale production, offering growth opportunities.
US Solar Energy Market Trends
Solar Photovoltaic (PV) Expected to Dominate the Market
- Solar power has become more accessible and prevalent in the United States. Solar experienced an annual growth rate of 8.3% in 2022 compared to the previous year. Over the last decade, solar installations in the country have grown 30-fold. The total installed capacity in the United States reached 145,598 gigawatt-hours in 2022.
- The solar energy markets are maturing rapidly around the country, and solar electricity is now economically competitive with conventional energy sources in several states, including California, Hawaii, and Minnesota.
- The solar photovoltaic (PV) market is mainly driven by strong federal policies, such as the solar Investment Tax Credit (ITC), rapidly declining costs, and increasing demand for clean electricity across the private and public sectors.
- California has by far the most installed capacity of solar photovoltaic (PV) power of any state in the United States. The Golden State had a total solar power capacity of over 37 gigatonnes as of the second quarter of 2022. Texas came in second with a capacity of about 15 gigatonnes. In 2021, both states in the United States added the most solar PV capacity.
- According to the Solar Energy Industries Association (SEIA), Utility-scale solar installations increased 66% from the first quarter of 2022. The sector is still experiencing supply constraints, but things are improving as module shipments arrive at ports. In the first quarter of this year, photovoltaic solar (PV) accounted for 54% of all new electricity-generating capacity additions. The capacity is expected to increase this year and continue to surge significantly during the forecast period.
- Hence, owing to the points mentioned above, solar photovoltaic (PV) is expected to dominate the US soar energy market during the forecast period.
Declining Costs and Increasing Efficiencies of Solar Panels Expected to Drive the Market
- Since the last decade, the average cost of a solar PV panel has dropped by nearly 90% globally. Prices of other components have also fallen significantly since 2011, reducing the Levelized Cost of Electricity (LCOE) for residential and utility-scale solar PV generation.
- Due to a combination of techno-economic and geopolitical factors, the rate of decline of solar PV panel prices is estimated to reduce slightly. Still, prices will continue to decline during the forecast period.
- According to the United States National Renewable Energy Laboratory (NREL), since 2010, there has been a 64%, 69%, and 82% reduction in the cost of residential, commercial-rooftop, and utility-scale PV systems in the United States, respectively.
- Due to the declining prices, many residential and commercial consumers are opting for rooftop solar PV systems to reduce energy costs and recovery time. Similarly, for large-scale utility project operators, lower panel costs enable them to sign Power Purchase Agreements (PPA) with consumers at a lower price.
- Over the past decade, the efficiency of solar PV panels has risen steadily. With the emergence of new technologies and manufacturing capabilities, this trend is expected to continue during the forecast period. The most efficient solar panels commercially available in the market have efficiency ratings as high as 22.8%, whereas most boards have an efficiency rating ranging from 16% to 18%.
- As of January 2022, SunPower's monocrystalline solar PV panels had the highest efficiency rating of any commercially available solar panel brand. Additionally, according to Solar Energy Industries Association, the U.S. Solar PV Pricing Trend dropped from USD 4.37 per watt in 2012 to USD 1.66 per watt in 2022 for the commercial segment.
- Therefore, owing to the above-mentioned points, declining costs and increasing efficiencies of solar PV panels are expected to drive the country's solar energy market during the forecast period.
US Solar Energy Industry Overview
The United States solar energy market is fragmented. Some of the key players (in no particular order) include M. A. Mortenson Company, First Solar Inc., NextEra Energy Inc., SOLV Energy, and 8minutenergy Renewables LLC.
US Solar Energy Market Leaders
8minutenergy Renewables LLC
M. A. Mortenson Company
First Solar Inc.
NextEra Energy Inc.
*Disclaimer: Major Players sorted in no particular order
US Solar Energy Market News
- April 2023: Atlas Renewable Energy and Albras signed a solar power purchase agreement (PPA). Atlas will deliver solar-generated power to Albras for the next 21 years under the contract terms. The 902 MW Vista Alegre Photovoltaic Project will supply solar energy. The factory in Minas Gerais in Southeastern Brazil will begin operations in 2025.
- April 2023: Masdar increased its foothold in the United States by acquiring a 50% stake in a combined solar and battery storage project from EDF Renewables North America. The Big Beau project in California comprises a 128MW solar facility plus a 40MW battery energy storage system. It is one of eight projects with a total capacity of 1.6 GW in which Masdar and EDF Renewables have agreed to collaborate.
- March 2023: Duke Energy Sustainable Solutions (DESS), a Duke Energy nonregulated commercial brand, is operating its largest solar power plant, a megawatt (MW) Pisgah Ridge Solar facility in Navarro County, Texas. Over the next 15 years, Charles River Laboratories International Inc. has a virtual power purchase agreement (VPPA) for 102 MW of the project.
US Solar Energy Market Report - Table of Contents
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.2 United States Solar Energy Installed Capacity and Forecast in Gigawatt (GW), till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
220.127.116.11 Declining Costs and Increasing Efficiencies of Solar PV Panels
18.104.22.168 Supportive Government Policies Towards Solar
22.214.171.124 Increasing Adoption of Alternative Clean Energy Sources and Increasing Natural Gas Consumption
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1.1 Solar Photovoltaic (PV)
5.1.2 Concentrated Solar Power (CSP)
6. COMPETITIVE LANDSCAPE
6.1 Mergers, Acquisitions, Collaborations, and Joint Ventures
6.2 Strategies Adopted by Key Players
6.3 Company Profiles
6.3.1 M. A. Mortenson Company
6.3.2 First Solar Inc.
6.3.3 NextEra Energy Inc.
6.3.4 SunPower Corporation
6.3.5 Renewable Energy Systems Ltd
6.3.6 Rosendin Electric Inc.
6.3.7 Hanwha Corporation
6.3.8 Canadian Solar Inc.
6.3.9 JinkoSolar Holding Co. Ltd
6.3.10 SOLV Energy
6.3.11 8minute Solar Energy
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Technological Advancements in Manufacturing PV Cells
US Solar Energy Market Research FAQs
What is the current United States Solar Energy Market size?
The United States Solar Energy Market is projected to register a CAGR of 16.48% during the forecast period (2024-2029)
Who are the key players in United States Solar Energy Market?
8minutenergy Renewables LLC , M. A. Mortenson Company, SOLV Energy, First Solar Inc. and NextEra Energy Inc. are the major companies operating in the United States Solar Energy Market.
What years does this United States Solar Energy Market cover?
The report covers the United States Solar Energy Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the United States Solar Energy Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Solar Energy in United States Industry Report
Statistics for the 2024 Solar Energy in United States market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Solar Energy in United States analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.