The North America rooftop solar market is expected to grow at a CAGR of more than 8% over the period of 2020-2025. The government policies that drive the rooftop solar installation market include net metering that allows the users to receive credit on its electricity bill by selling excess electricity that the user generates through its solar photovoltaic installations. Moreover, a reduction in the installation cost of solar photovoltaic panels helps the market to expand. However, the cost of electricity storage on the battery is quite high, which requires a grid battery to store electricity during the night. However, increasing space constraints in the major cities across the globe are driving the demand for offshore wind energy and other alternative renewable energy sources. This factor is expected to hinder the growth of the market studied.
Key Highlights
- Residential rooftop installation is one of the prominent segments under rooftop solar PV installations that are used to generate electricity for residential purposes. The sector is expected to dominate the market growth in the region during the forecast period.
- Rising shift towards greener and cleaner distributed grid systems in the region is expected to provide an excellent opportunity for the rooftop solar players.
- With the second-highest installed capacity of solar power in 2019 in the region, the United States is expected to dominate the market for the rooftop solar in the region.
Key Market Trends
Residential Sector to Dominate the Market
- The residential sector is expected to be the fastest-growing market for the rooftop solar, owing to factors like the rising shift towards greener sources of energy and rising awareness about the environment.
- Solar photovoltaic mounted on the rooftop of a residential building used to generate electricity are know as residential rooftop solar PV. The installation includes photovoltaic modules, mounting systems, cables, and other electrical accessories.
- It is expected that nearly 1.8% of homes across the largest metro areas around the world have installed the rooftop solar PV. California in the United States is the prominent state to have the highest penetration in this segment.
- San Diego and San Francisco are the major cities to have the highest percentage of residents that installed rooftop solar PV. Moreover, the cities are expected to have around 12-15% penetration level during the forecasting period.
- Therefore, with the increase in the demand for cleaner energy, rooftop solar in the residential sector is expected to rise significantly in the forecast period.
United States to Dominate the Market
- The United States is expected to witness significant growth in the forecast period, over rising environmental concerns, and economic benefits of domestic solar power generation. The country accounts for over 10% of global solar power capacity, as of 2019.
- Increasing demand for clean energy is one of the primary drivers for the distributed solar power generation market in the country. The country is actively shifting from conventional energy-producing sources to clean energy sources and produced over 16.7% of the total electricity generated from hydropower and renewables combined.
- Rooftop solar offers the benefits of modern electricity services to households that had no access to electricity, reducing electricity costs on islands and in other remote locations that are dependent on oil-fired generation, as well as enabling residents and small businesses to generate their own electricity.
- In 2019, the United States added around 13.3 GW of solar power, 2.8 GW of which was residential solar.
- All of the above factors are expected to help the country dominate the region in terms of rooftop solar capacity during the forecast period.
Competitive Landscape
The North America rooftop solar market is fragmented. Some of the major companies are Solarcity Corporation, Yingli Solar, Wuxi Suntech Power Co. Ltd., Sunpower Corporation, Momentum Solar among others.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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