The United States Solar Energy Market Report is Segmented by Type (Solar Photovoltaic and Concentrated Solar Power), Mounting Type (Ground-Mounted, Rooftop, and Floating Solar), and End-Use (Utility-Scale, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

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US Residential Solar Market Size 2025-2029

The US residential solar market size is forecast to increase by USD 10.93 billion at a CAGR of 12.3% between 2024 and 2029.

The Residential Solar Market in the US is experiencing significant growth, driven by increasing investments in renewable energy and the adoption of solar power as a cost-effective and sustainable energy solution. The integration of residential energy storage systems is a key trend, enabling solar panels to function as virtual power plants during peak energy usage hours. This not only reduces reliance on traditional power grids but also provides energy security and stability. However, the market faces challenges, including the availability of alternative technologies such as wind and geothermal energy, which may impact the competitiveness of solar power.
Additionally, the upfront costs of solar panel installation and maintenance can be a barrier for some homeowners. To navigate these challenges, companies can explore partnerships with energy providers, offer financing options, and focus on improving the efficiency and affordability of their solar panel systems. Moreover, the emergence of smart home technology and the integration of solar panels with other home systems, such as heating and cooling, can create new opportunities for innovation and growth in the market. Companies like Tesla, SunPower, and Sunrun are leading the charge, offering integrated solar and energy storage solutions to meet the evolving needs of homeowners.
By staying attuned to these trends and challenges, companies can effectively capitalize on the potential of the Residential Solar Market in the US and position themselves for long-term success.

What will be the size of the US Residential Solar Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The residential solar market in the US is experiencing significant growth, driven by the increasing importance of green energy in mitigating climate change. Solar system sizing and design have become crucial aspects of energy infrastructure, enabling energy independence and reducing carbon emissions. The integration of solar energy with electric vehicles and energy management systems is transforming the market. Energy conservation, energy efficiency, and smart grid technologies are essential components of this transition. Solar irradiance and resource assessment play a vital role in solar energy simulation and modeling, ensuring optimal system performance. Building energy efficiency and industrial energy efficiency improvements are complementary to solar system implementation.
Energy policy and grid modernization are shaping the market landscape, with a focus on energy economics and energy storage technologies. Solar panel cleaning and maintenance are essential for maximizing system productivity. Sustainable development and renewable energy are key trends, with solar system monitoring and energy audits providing valuable insights for businesses.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Technology

  Crystalline silicon
  Thin-film


Location

  California
  Florida
  Arizona
  Rest of US


Type

  Rooftop solar systems
  Ground-mounted solar systems


Connectivity

  On-grid solar systems
  Off-grid solar systems


Geography

  North America

    US

By Technology Insights

The crystalline silicon segment is estimated to witness significant growth during the forecast period.

The residential solar market in the US is witnessing significant growth, driven by advancements in solar technology and increasing consumer demand for sustainable energy solutions. Solar energy systems, including solar panels made from crystalline silicon, are at the forefront of this trend. Crystalline silicon is the most widely used solar photovoltaic (PV) system in the US, with modules built using highly stable c-Si solar cells delivering efficiencies of around 20%. Two types of c-Si are used to manufacture PV modules: mono-crystalline silicon and multi-c-Si. Both types function similarly in the overall solar PV system, converting solar energy into electricity. Mono-crystalline panels are produced by molding silicon into bars and cutting it into wafers, while multi-c-Si solar panels are made by melting silicon fragments together.

Solar energy distribution is facilitated through grid-tied systems, enabling excess energy generated to be fed back into the grid. Solar maintenance is crucial for optimal system performance, with regular monitoring and solar panel cleaning essential. Solar energy research cont

The North America Solar Photovoltaic (PV) Market is segmented by Application (Residential, Commercial, and Utility), Deployment (Ground Mounted and Rooftop Solar), Technology (Crystalline Solar and Thin Film), and Geography (United States, Canada, and Mexico). The report offers the market size and forecasts installed capacity (GW) for all the above segments.

The surging popularity of solar power amid environmental concerns has led to an uptick in installations. As electricity prices skyrocket, consumers and businesses seek ways to reduce their utility bills. Solar energy not only helps reduce costs but also cuts down on carbon emissions while promoting sustainability. Revenue for installation services swelled at a CAGR of 6.2% to 22.4 billion over the past five years, including a 3.6% hike in 2025 alone. The introduction of the investment tax credit (ITC), which offered a 30.0% tax credit, became a catalyst for installations. Initially, the tax credit was set to dip and expire in 2024. The recent Inflation Reduction Act reverted the credit to 30.0% and extended it until 2032. Nonetheless, this credit was recently cut and is set to expire at the end of 2025, amid the newly passed Big Beautiful Bill. Even so, state and local governments offer additional incentives for switching to solar. Increasing residential construction in 2020 and 2021 led to more installations as many new housing projects included solar panels to receive LEED certification and meet green initiatives targets. Low-cost imports from Asia and favorable regulations like the 24-month tariff pause led to the price of panels falling, causing installation services to charge less and attracting more customers. Profit remained afloat because of the influx of new installations. The Inflation Reduction Act significantly boosted domestic solar panel manufacturing, allowing installation companies to diversify their supply chains. Production and investment tax credits incentivized manufacturers to expand or establish new facilities, reducing dependence on foreign products. By sourcing panels domestically, installers now benefit from lower costs and are better prepared for future tariffs on China and Southeast Asian countries, especially as existing tariff waivers have expired. With the termination of residential tax credits in 2025, installation companies are set to shift their focus toward other clients, as rising environmental concerns and the push to go green drive more commercial and government buildings to adopt solar panels to meet ESG standards and sustainability goals. Nonetheless, local and regional tax incentives will help sustain some residential growth, although it will not reach the levels seen in the current period. Overall, solar panel installation revenue is projected to grow at a CAGR of 2.8%, reaching $25.7 billion by 2030.

The U.S. solar power industry is experiencing robust growth, driven by increasing demand for renewable energy, supportive government policies like tax incentives and renewable portfolio standards, and decreasing solar panel costs. The market, segmented into Solar Photovoltaic (PV) and Concentrated Solar Power (CSP), shows significant potential for expansion. While precise market size figures for 2025 are not provided, considering a CAGR of 16.48% from an unspecified base year (let's assume 2019 for illustrative purposes) and a current market size in the billions, a reasonable estimate for the 2025 U.S. solar power market size could be in the range of $50-60 billion. This is supported by the numerous large companies involved, including established players like First Solar and NextEra Energy, alongside specialized installers like SOLV Energy and 8minute Solar Energy. Growth is further fueled by technological advancements leading to increased efficiency and reduced installation costs, making solar power a more competitive and attractive option for both residential and commercial consumers. The continued growth of the U.S. solar power market is projected through 2033, though challenges remain. These include land availability for large-scale solar farms, grid infrastructure limitations in accommodating intermittent renewable energy sources, and potential supply chain disruptions impacting the availability and cost of solar panels. However, ongoing innovation, improving energy storage solutions, and a growing emphasis on sustainable energy practices are likely to mitigate these constraints. The strong presence of major players like Mortenson and Hanwha, coupled with the emergence of smaller, specialized companies, indicates a dynamic and competitive landscape poised for sustained expansion. Focusing on specific regional variations within the U.S. and further segmenting the market by residential, commercial, and utility-scale projects will provide a more granular understanding of future growth trajectories. Recent developments include: 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.. Key drivers for this market are: 4., Declining Costs and Increasing Efficiencies of Solar PV Panels 4.; Supportive Government Policies Towards Solar. Potential restraints include: 4., Declining Costs and Increasing Efficiencies of Solar PV Panels 4.; Supportive Government Policies Towards Solar. Notable trends are: Solar Photovoltaic (PV) Expected to Dominate the Market.

The North America Solar Photovoltaic (PV) Market size was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, exhibiting a CAGR of 20.00">> 20.00 % during the forecasts periods. Solar photovoltaic (PV) technology involves converting sunlight directly into electricity using solar cells. These cells are made from semiconductor materials, typically silicon, which absorb photons from sunlight and release electrons, creating an electric current through the photovoltaic effect. Solar PV systems consist of multiple solar cells connected to form modules or panels, which can be used individually or combined into larger arrays to generate more power. This technology is widely used for residential, commercial, and utility-scale power generation, offering a clean and renewable energy source that reduces reliance on fossil fuels and helps mitigate climate change. Recent developments include: December 2022: the construction of the largest landfill solar project of 25.6 MW in North America at Mount Olive, New Jersey, has been completed. The project was developed by CEP Renewables and CS Energy. The project is expected to light up 4,000 households with clean energy., November 2022: EE North America, a European Energy company, partnered with Elio Energy to develop a Solar Power Plant and Energy Storage in Arizona, USA. The construction of the 2 GW project will tentatively start in 2023.. Key drivers for this market are: 4., Increased Government Investment in Establishing Water Treatment Infrastructure4.; Increase in Power Generation Using Steam. Potential restraints include: 4., The Emissions Regulations, High Capital and Operations Costs. Notable trends are: Utility Segment to Dominate the Market.

The North American solar photovoltaic (PV) market is experiencing robust growth, driven by increasing environmental concerns, supportive government policies (including tax credits and subsidies), decreasing solar panel costs, and a rising demand for renewable energy sources. The market's Compound Annual Growth Rate (CAGR) exceeding 20% signifies substantial expansion throughout the forecast period (2025-2033). Residential installations are a significant market segment, fueled by homeowner incentives and decreasing installation costs, alongside a steady rise in commercial and utility-scale projects catering to larger energy demands. Technological advancements, such as the development of higher-efficiency crystalline solar panels and more durable thin-film technologies, are further accelerating market growth. The United States represents the largest share of the market, followed by Canada and Mexico. However, the market faces challenges including land availability for large-scale projects, permitting complexities, and grid infrastructure limitations. Despite these constraints, the long-term outlook remains positive, with a projected substantial increase in market size by 2033, driven by continued technological innovation and increasing policy support. This market growth is segmented across various deployment methods, with rooftop solar installations dominating the residential sector, while ground-mounted systems prevail in commercial and utility applications. The crystalline silicon technology currently holds the largest market share, but thin-film solar technology is witnessing steady improvement and adoption, offering potential for future growth. Key players like SunPower Corporation, Sunrun Inc., and Canadian Solar Inc. are actively shaping the market landscape through innovation, strategic partnerships, and expanded distribution networks. Geographical differences in solar irradiance, policy frameworks, and economic conditions influence growth rates across the United States, Canada, and Mexico, with the US exhibiting the highest adoption rate. The sustained commitment to renewable energy targets and the declining cost of solar energy will continue to drive this significant expansion over the coming years. Recent developments include: December 2022: the construction of the largest landfill solar project of 25.6 MW in North America at Mount Olive, New Jersey, has been completed. The project was developed by CEP Renewables and CS Energy. The project is expected to light up 4,000 households with clean energy., November 2022: EE North America, a European Energy company, partnered with Elio Energy to develop a Solar Power Plant and Energy Storage in Arizona, USA. The construction of the 2 GW project will tentatively start in 2023.. Notable trends are: Utility Segment to Dominate the Market.

The size of the U.S. Solar Power Industry market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 16.48% during the forecast period. This US solar power industry is gaining rapidly with the combination of advancing technology, decreasing costs, and productive government policies. As the country strives towards a cleaner energy future, solar power has come up as an important player in curbing greenhouse gas emissions and improving energy independence. This has caused the cost of solar photovoltaic systems to plummet over the last ten years, thereby making solar energy ready for both residential and commercial users. This lowered the cost and added incentives like tax credits and rebates have made it a natural choice widely adopted all over the country. Besides, growing awareness of climate change and the need for renewable source options enhances the need for solar installation. California, Texas, and Florida are the leading front in terms of solar capacity, backed by an auspicious regulatory environment and adequate sunlight. More community solar projects and energy storage options make solar energy even more appealing to an increasing number of consumers to join the clean energy revolution. Despite supply chain disruptions and tariffs imposed, the outlook for the U.S. solar power industry remains promising. Investments and innovation continue pouring into an industry that will significantly contribute to national energy goals and developing a renewable energy future that is sustainable and resilient. Recent developments include: 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.. Key drivers for this market are: Declining Costs and Increasing Efficiencies of Solar PV Panels 4., Supportive Government Policies Towards Solar. Potential restraints include: Increasing Adoption of Alternative Clean Energy Sources and Increasing Natural Gas Consumption. Notable trends are: Solar Photovoltaic (PV) Expected to Dominate the Market.

Solar panel manufacturers have thrived despite some hurdles throughout the period. Companies saw an uptick in the need for solar panels as the country continued emphasizing renewable energy. The Inflation Reduction Act bolstered and extended production and investment tax credits, making domestic manufacturing more viable. Even so, manufacturers have been plagued by import penetration, specifically from Asian products, which flooded the US market with low-cost solar modules and cells. In 2022, the Biden Administration announced waiving tariffs on solar panel imports from Vietnam, Malaysia, Cambodia and Thailand to accelerate solar panel installations across the country in favor of renewable energy. While this didn't hinder revenue, it caused a slowdown in growth in the middle of the period as import penetration was at an all-time high. Even so, these waivers expired in June 2024, providing operators with growth. Overall, solar panel manufacturing revenue has swelled a CAGR of 3.2% to $21.9 billion in 2025, including a 9.1% jump in 2025 alone. Through 2025, solar panel manufacturers have significantly benefited from the Inflation Reduction Act, which offers production tax credits to companies that expand or build manufacturing facilities and produce specific types of components. These credits incentivize expansion, enabling domestic solar panel manufacturing to increase substantially, boosting revenue and positioning the U.S. as one of the world's top producers. Additionally, this expansion prepares manufacturers to meet domestic demand during the outlook period, reducing reliance on imports. Revenue is set to push up as tariff waivers expired in June 2024, causing import penetration to contract throughout the outlook period. Government incentives and regulations like tax credits and renewable portfolio standards will push more consumers and businesses to adopt solar power, increasing the need for panels to meet installation quotas. Even so, domestic manufacturers will face pushback from traditional energy sources (think natural gas and coal) as President Trump aims to bolster the country’s fossil fuel production. Manufacturers must ramp up research and development to help take solar power to the next level. Revenue is set to climb at a CAGR of 6.2% over the five years through 2030, reaching $29.6 billion.

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Solar Photovoltaic (PV) Market Size 2025-2029

The solar photovoltaic (pv) market size is forecast to increase by USD 58.47 billion, at a CAGR of 8.9% between 2024 and 2029. Increasing government support for solar power technology will drive the solar photovoltaic (pv) market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 37% growth during the forecast period.
The market is expected to grow significantly in Second Largest Region as well over the forecast period.
By the Deployment, the Ground-mounted sub-segment was valued at USD 47.36 billion in 2023
By the End-user, the Commercial sub-segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 103.14 billion
Future Opportunities: USD USD 58.47 billion 
CAGR : 8.9%
APAC: Largest market in 2023

Market Summary

The Solar Photovoltaic (PV) Market continues to be a dominant force in the global energy transition, driven by factors like falling costs, supportive government policies, and technological advancements in monocrystalline silicon and thin-film technologies. In 2024, the market installed nearly 600 GW of new capacity, accounting for over 80% of all new renewable energy additions worldwide.
The increasing need for energy security and sustainability is pushing adoption across residential and commercial sectors. This has fueled innovation, including a rising emphasis on integrating AI and smart grid technologies for predictive maintenance and optimized energy management.
These market dynamics are also reflected in related sectors, such as the Renewable Energy Storage and Smart Grid Technology markets, which are experiencing parallel growth

What will be the Size of the Solar Photovoltaic (PV) Market during the forecast period?

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How is the Solar Photovoltaic (PV) Market Segmented and what are the key trends of market segmentation?

The solar photovoltaic (pv) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Deployment

  Ground-mounted
  Rooftop


End-user

  Commercial
  Residential
  Utility


Technology

  Monocrystalline silicon
  Polycrystalline silicon
  Thin-film
  Bifacial solar panels
  Others


Geography

  North America

    US


  Europe

    France
    Germany
    Italy
    Spain


  APAC

    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Deployment Insights

The ground-mounted segment is estimated to witness significant growth during the forecast period.

Solar photovoltaic (PV) systems, which include electrical bypass diodes and solar trackers, have seen substantial growth in recent years. The photovoltaic energy yield from these systems has improved significantly due to advancements in perovskite solar modules, solar cell interconnect, and power conversion efficiency. Silicon wafer production and solar cell manufacturing have become more efficient, leading to increased solar cell efficiency and reduced costs. Rooftop PV installations have gained popularity due to their ease of integration with the grid. Grid integration studies are essential to ensure seamless power transmission and prevent PV module degradation. Ground mount systems, which account for a significant portion of the market, are being optimized through the use of thin film photovoltaics, anti-reflective coatings, and spectral response analysis.

Light-induced degradation and capacitance-voltage analysis are crucial for understanding solar panel temperature and current-voltage characteristics. Cadmium telluride panels and amorphous silicon cells are alternative technologies that offer potential for increased efficiency. Energy storage systems are increasingly being integrated with PV arrays to ensure consistent power supply and improve overall system performance. The solar industry is expected to grow further, with increasing demand for renewable energy sources and advancements in solar technology. According to recent studies, the market for solar PV systems is projected to expand by 15% in the next two years. Additionally, the market for bifacial solar technology, which can generate electricity from both sides of the panel, is expected to grow by 20% during the same period.

Inverter efficiency losses are a significant challenge that is being addressed through ongoing research and development efforts. Despite these challenges, the solar industry continues to evolve, offering opportunities for innovation and growth. Solar irradiance modeling and solar energy forecasting are essential tools for optimizing solar power generation and ensuring grid stability.

The Ground-mounted se

U.s. solar power market valued USD 53.45 Billion in 2024 and is projected to surpass USD 123.86 Billion through 2032

According to Cognitive Market Research, the global Solar Energy market size will be USD 95451.6 million in 2024. It will expand at a compound annual growth rate (CAGR) of 6.50% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 38180.6 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 28635.4 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 21953.8 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.5% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 4772.5 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.9% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 1909.0 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.2% from 2024 to 2031.
The Photovoltaic Systems Technology held the highest Solar Energy market revenue share in 2024.

Market Dynamics of Soloar Energy Market

Key Drivers of Soloar Energy Market

Increase in energy demand to Increase the Demand Globally: The growth of the global solar energy market is primarily driven by the increasing energy demand due to a surge in population. As the global population continues to rise, especially in developing countries, the energy demand grows proportionally. Urbanization is also accelerating, with more people moving to cities, leading to greater energy needs across residential, commercial, and industrial sectors. This rising energy demand is coupled with a growing emphasis on sustainable solutions due to environmental concerns.

Countries Aiming to Achieve Green Energy Targets to Propel Market Growth: A global energy transition is urgently required to limit the increase in average global surface temperature to below 2°C. Consequently, the installation of renewable energy sources is expected to grow significantly in the coming years, driving market expansion. The shift from fossil fuels to low-carbon solutions will be crucial, as energy-related carbon dioxide emissions account for two-thirds of all greenhouse gases. Government initiatives and new energy targets aimed at promoting sustainable energy have positively influenced market growth.

Key Restraint of Soloar Energy Market

High Investment and Lack of Infrastructure to Limit the Sales: The overall cost of solar PV systems is higher than that of traditional solar panels, which may limit their adoption in residential buildings with comparatively lower energy needs. For instance, installing 15 ground-mounted solar panels with a capacity of 300 watts each would cost approximately USD 14,625, with an additional USD 500 per panel for the mounting structure. This higher initial cost can lead to reduced utilization of solar power generation systems. Additionally, inadequate infrastructure further restricts investments in the market.

Trends in Soloar Energy Market

Rapid Adoption of Floating Solar (Floatovoltaics): With limited land availability and rising energy demand, floating solar farms are gaining traction—especially in countries like China, India, and Japan. These systems are installed on lakes, reservoirs, and irrigation ponds, reducing land use while benefiting from natural cooling that boosts efficiency. They also help diminish water evaporation and algae growth, offering both energy and environmental advantages. As deployment costs decline and performance improves, floating solar is emerging as a fast-growing segment of utility-scale solar energy.

Integration of Solar + Storage and Energy-as-a-Service Models: The solar sector is shifting toward integrated solutions that pair photovoltaic systems with battery storage and smart energy management services. This enables consumers and businesses to optimize energy use, store excess production, and gain grid independence. Energy-as-a-Service (EaaS) models—where solar-plus-storage setups are offered on a subscription basis—are becoming popular in commercial and industrial markets. These models reduce upfront costs and simplify system adoption, accelerating distributed s...

United States Solar PV Module Market was valued at USD 14.6 billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 10.7% through 2029.

United States Solar Energy Panel Market was valued at USD 18.5 billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 20.7% through 2029.

US Solar Photovoltaic Glass Market is driven by the rising adoption of solar energy systems, advancements in solar panel technology, and supportive government policies.

The global solar energy market is expected to reach 422 billion U.S. dollars in 2022, in comparison to 86 billion U.S. dollars in 2015. Solar energy is one of the most popular renewable energy sources and in recent years more capacity was deployed than traditional energy sources. The success related to the solar energy segment can be attributed to the declining cost of installing solar photovoltaic systems.

Regional solar markets

China and the United States were two of the largest solar markets in the world, driving a large portion of global solar demand. Europe, on the other hand, had experienced a declining solar market for over five years, but has seen growth recently due to Turkey’s expansion of solar capacity. These mature markets are expected to reduce their hold on the market as emerging markets in Latin America, the Middle East, and Africa grow. However, solar prices in emerging markets will be much higher than in developed markets as business situations can be less than ideal. In these cases, development financing institutions may help cover risks associated with financing solar projects.

California has by far the greatest installed capacity of solar photovoltaic (PV) power of any U.S. state. As of March 2025, the Golden State had a cumulative solar power capacity of over ***** gigawatts. Texas followed with a capacity of roughly ***** gigawatts. Both U.S. states also had the largest solar PV capacity additions in 2024. Solar power across the U.S. Solar power accounts for around **** percent of the total electricity generated in the United States. Since the turn of the century, the solar PV capacity installed in the North American country has experienced exponential growth, surpassing *** gigawatts as of 2024, which is enough to power the equivalent of ** million average homes in the country. Even though the U.S. energy mix is still dominated by fossil fuels, renewable sources are forecast to grow in the upcoming years. Employment in the U.S. solar market The solar sector is an incubator for job growth across the United States. Over the last decade, employment figures in the U.S. solar market have increased nearly threefold. More than ******* people worked in the solar industry in 2023, with the state of California concentrating the largest solar workforce in the country.

According to Cognitive Market Research, the Global Solar Panel market size will be USD 171548.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 8.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 68619.2 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 51464.4 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 39456.0 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 8577.4 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 3430.9 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.7% from 2024 to 2031.
The Photovoltaic Systems Technology held the highest Solar Panel market revenue share in 2024.

Market Dynamics of Solar Panel Market

Key Drivers for Solar Panel Market

Increasing Investments in Renewable Energy : Global investments in renewable energy are on the rise, driven by their cost-effectiveness and minimal carbon emissions. Both governments and the private sector are enhancing support for solar power development through various policies, incentives, and technological innovations, which are promoting economies of scale. This heightened emphasis on adopting clean energy is boosting the global demand for solar panels.

Escalating Urban Energy Requirements : The rapid pace of urbanization is escalating energy demand, leading to the increased adoption of rooftop and building-integrated solar solutions. Urban development initiatives are emphasizing energy efficiency and sustainable infrastructure, resulting in a rise in solar installations across residential, commercial, and industrial sectors. This trend is particularly pronounced in emerging economies that are witnessing rapid urban population growth and infrastructure development.

Key Restraint for the Solar Panel Market

Significant Initial Investment : Even with decreasing panel prices, the overall initial investment—which includes costs for inverters, storage, installation, and maintenance—remains substantial. Limited financing options and extended payback periods discourage both residential and commercial users, especially in developing markets. These high initial costs continue to hinder the widespread adoption of solar technology on a global scale.

Variable Energy Generation : Solar energy generation is contingent upon sunlight availability, resulting in intermittent and weather-dependent energy production. Areas with limited sunlight hours experience decreased efficiency, necessitating additional energy systems or storage solutions. This variability can deter large-scale adoption and complicate grid integration, posing a challenge to consistent market growth.

Key Trends for the Solar Panel Market

Advanced Panel Technologies : Innovations such as monocrystalline, bifacial, and transparent panels improve efficiency, durability, and versatility. Intelligent solar panels equipped with sensors enhance energy production, while innovative materials prolong lifespan and lower costs. These developments expand applications, ranging from building facades to urban infrastructure, facilitating widespread adoption in both residential and commercial sectors. (Source: https://www.ecoticias.com/en/transparent-solar-panel-windows/8339/)

Integration with EV Charging Infrastructure : Solar panels are increasingly being integrated with electric vehicle (EV) charging stations. This combination fosters sustainable energy utilization, diminishes dependence on the grid, and encourages green mobility. As global EV adoption continues to rise, the integration of solar generation with charging infrastructure is becoming a significant driver of market growth. Introduction of the Solar Panel Market

Solar Panels are devices that convert sunlight into electricity using photovoltaic (PV) cells and have become central to the global transition towa...

North America Solar Photovoltaic Market size was valued at USD 29.3 Billion in 2023 and is projected to reach USD 47.9 Billion by 2031, growing at a CAGR of 6.2% from 2024 to 2031.

North America Solar Photovoltaic Market: Definition/ Overview Solar photovoltaic (PV) technology is the method of transforming sunlight into electricity with semiconductor materials. It is based on the photovoltaic phenomenon, in which solar energy stimulates electrons in materials, resulting in an electric current. Solar PV systems consist of panels, inverters and electrical components that harness and transmit solar energy for a variety of purposes.

Solar power companies have skyrocketed, propelled by improvements in the technologies used for electricity generation and government incentives, like the renewable portfolio standard (RPS) targets. RPS legislation requires local utility companies to diversify their portfolio and generate percentages of their energy production through renewable resources. Increases in public support for green energy led to tax incentives and grants to encourage investment in solar power. This has led to more companies powering facilities with solar power, driving growth. Revenue has swelled at a CAGR of 23.2% to $32.6 billion through the end of 2025, including a 34.1% uptick in 2025 alone. Government assistance from federal and state entities led to significant growth in solar power. The number of solar projects has skyrocketed, exemplifying a triumph for energy policy in solar power, which has historically struggled to compete with traditional power sources. Government programs like credits, grants and tax exemptions have allowed many companies to overcome the high entry costs of solar power and support solar energy development. The declines in the price of inputs over the past few decades have lowered operational costs, bolstering profit. Tax credits have also bolstered the number of solar panel manufacturers in the US, allowing the industry to face little setback after tariff waivers on foreign panels expired. Through 2030, many trends that have allowed the industry to succeed will continue. Government tax credits will remain active, allowing solar power companies to compete with other energy sources. The domestic solar panel manufacturing surge will enable companies to source panels much more quickly, letting solar power expand rapidly. Even so, the new Trump administration has been vocal in supporting fossil fuels and has stated it plans to expand oil and gas production, which may weaken solar power. Nonetheless, upgrades in technology will enable solar panels to become more efficient, bringing down the cost and allowing them to achieve grid parity in states where solar is price-competitive. Revenue will expand at a CAGR of 20.5% to $82.9 billion through 2030.