North America Solar Power Market Outlook, 2030

The North American solar power market has witnessed considerable growth over recent decades, fueled by technological innovations, governmental incentives, and the increasing demand for clean energy alternatives. This area, notably the United States, has emerged as one of the largest solar power markets in the world, with both utility-scale and residential solar installations increasing. Solar power development in North America dates back to the mid-20th century, but it was not until the early 2000s that the market began to pick up pace. The initial phases of solar power development in the U. S. were characterized by niche uses, primarily in space exploration and isolated regions.

Nevertheless, with advancements in photovoltaic (PV) technology and growing worries about climate change and energy autonomy, solar energy began to gain traction in the 2000s. Federal initiatives, such as the Investment Tax Credit (ITC) introduced in 2006, played a crucial role in promoting the solar sector by providing tax benefits for both residential and commercial setups. Over the past decade, the North American solar market, particularly in the U. S., has grown rapidly. By the 2020s, the U. S. established itself as one of the leading solar power producers globally, with solar energy representing an increasing proportion of the nation's electricity generation. Significant advancements include large solar farms in arid regions like California, Nevada, and Arizona, alongside a rise in installations within the residential and commercial segments. Canada has also experienced growth in solar installations, especially in provinces like Ontario, which introduced feed-in tariffs to promote renewable energy investments. The expansion of the solar power market in North America has been propelled by decreasing solar panel prices, enhanced energy storage solutions, favorable policies, and a growing public appetite for clean and renewable energy. As the cost of solar technology continues to fall, solar power is anticipated to become increasingly mainstream in the region.

According to the research report, 'North America solar power Market Outlook, 2030,', the North America solar power market was valued at more than USD 46.50 Billion in 2024. The North American solar power market presents a variety of opportunities, particularly in the United States, which enjoys plentiful sunlight in regions like the Southwest and California. The rising demand for clean energy solutions offers considerable opportunities for development in both residential and commercial markets. Innovative solar storage solutions, including batteries, create opportunities for off-grid systems and enhancing the reliability of solar energy.

Moreover, the combination of solar power with electric vehicles (EVs), smart grids, and energy management systems opens new prospects for growth. Canada also possesses notable solar potential, especially in Ontario and Alberta, where increasing government incentives are aimed at promoting clean energy adoption. In spite of the optimistic growth outlook, the solar market encounters various challenges. Intermittency stands out as a major concern, since solar power generation relies on sunlight, complicating the ability to guarantee a steady supply. Although energy storage technology is advancing, it still proves expensive. Another difficulty is grid integration, as the current grid infrastructure may require upgrades to handle the additional renewable energy inputs. Additionally, policy and regulatory uncertainties, particularly regarding government incentives and tariffs, can introduce unpredictability for businesses and investors within the solar sector. Financing can also present a hurdle, especially for residential installations, as up-front expenses, while declining, remain challenging. Significant growth factors for the North American solar market encompass declining solar technology costs, government incentives (like the Investment Tax Credit in the U. S.), and rising environmental concerns about climate change. Corporate sustainability goals further promote adoption in commercial sectors. Additionally, energy independence and job creation in the clean energy sector serve as strong motivators for persistent growth.

Market Drivers

Government Incentives and Policies: Government backing via incentives and policies has been a crucial driver of the solar power market in North America. In the U. S., the Investment Tax Credit (ITC) has played a vital role in fostering both residential and commercial uptake of solar energy. The ITC permits a tax credit of as much as 30% of the overall expense of a solar system, considerably alleviating the financial barriers for solar adoption. Furthermore, numerous states have enacted renewable energy goals, net metering policies, and renewable energy standards to promote the expansion of solar energy. These policies render solar setups more cost-effective and appealing to consumers, leading to enhanced market penetration.

Decreasing Costs of Solar Technology: The reduction in solar panel prices during the past decade has rendered solar energy more accessible for both consumers and businesses. Innovations in photovoltaic (PV) technology, enhanced manufacturing methods, and economies of scale have decreased the price of solar cells and associated components. As the expenses for solar equipment keep dropping, an increasing number of consumers, businesses, and utility providers are opting for solar energy solutions. In addition, the declining cost of energy storage systems, such as lithium-ion batteries, has facilitated better integration of solar power into both grid and off-grid applications, promoting solar adoption throughout North America.

Market Challenges

Intermittency and Grid Integration: Solar power is intermittent, indicating that its generation relies on sunlight, which fluctuates with the time of day, weather conditions, and seasons. This intermittency presents a challenge for energy reliability and grid integration. Despite the growth in solar power generation, the current grid infrastructure in North America is not adequately prepared to manage the variable nature of renewable energy resources. Modernizing and upgrading the grid, as well as improving energy storage technologies, are essential for addressing this issue. However, the high expenses associated with these upgrades and storage systems persist as obstacles.

Financing and Upfront Costs: Even with the declining costs of solar panels and systems, the initial investment required for residential solar installations can still be substantial, particularly for homeowners lacking access to financing options. Although various financing models such as solar leases, power purchase agreements (PPAs), and home improvement loans are at hand, many individuals and businesses may face challenges concerning the upfront costs. Moreover, discrepancies in local incentives and the cost of financing can lead to variations in solar adoption rates, especially in lower-income regions or among small enterprises.

Market Trends

Energy Storage and Grid Modernization: One of the most significant trends in the North American solar power market is the heightened emphasis on energy storage systems. As the adoption of solar energy increases, so does the necessity for methods to accumulate excess energy for times when sunlight is unavailable. Innovations such as lithium-ion batteries and flow batteries are being created to store solar power, enabling consumers to depend on solar energy even at night or on overcast days. Furthermore, the incorporation of solar power with smart grid technologies is facilitating more efficient management and distribution of solar energy, addressing challenges related to intermittency and enhancing grid resilience.

Corporate and Consumer Sustainability: There is an escalating trend of corporate sustainability objectives fueling the demand for solar energy. Numerous large corporations, including Google, Amazon, and Walmart, have established bold carbon neutrality and renewable energy sourcing ambitions. These organizations are increasingly funding solar power installations to satisfy their energy requirements while minimizing their carbon footprints. In addition, consumers are becoming more environmentally aware, resulting in a heightened demand for residential solar installations. This trend is additionally bolstered by corporate social responsibility (CSR) initiatives and green certifications, which advocate for sustainability and energy efficiency in both corporate and residential areas.

Photovoltaic (PV) technology is at the forefront and experiencing rapid growth in the North American solar energy market due to its affordability, scalability, and effectiveness in capturing solar power.

Photovoltaic (PV) technology represents the fastest-expanding sector in the North American solar energy market as it has become progressively cost-effective, highly scalable, and efficient in transforming sunlight into electricity. In the last decade, PV system prices have significantly decreased, propelled by improvements in manufacturing processes, economies of scale, and the worldwide supply chain for solar materials. Consequently, PV technology has emerged as the favored option for both residential and commercial installations throughout North America. A primary benefit of PV technology is its flexibility.

It can be implemented in a diverse range of applications, from rooftop setups in residential neighborhoods to large-scale utility ventures. This versatility has stimulated widespread usage, with more homeowners, enterprises, and utilities opting for solar power as a budget-friendly and sustainable energy solution. Furthermore, the modular design of PV systems enables easy scaling, making them appropriate for various types of installations and energy needs. The enhancement in solar panel performance is another factor contributing to the momentum of PV technology. Continuous innovation has led to the development of more efficient panels that can produce more energy from the same volume of sunlight, implying that less area is needed for installations. As a result, PV systems are becoming more practical for both urban and rural locales. Moreover, government incentives and regulations, such as the Investment Tax Credit (ITC), continue to promote the use of PV systems. These incentives reduce the overall installation costs, rendering it a financially appealing option. With the persistent drop in expenses, alongside the emphasis on sustainability, lower carbon emissions, and energy self-sufficiency, PV technology is anticipated to stay the leading pillar in the North American solar energy market for many years ahead.

Solar panels are at the forefront of the North American solar power market because of their affordability, scalability, and capacity to deliver dependable renewable energy across residential, commercial, and utility sectors.

Solar panels have become the leading technology in the North American solar power market attributed to their cost-effectiveness, scalability, and efficiency in generating renewable energy. Over the last decade, the price of solar panels has decreased significantly, fueled by technological advancements, enhanced manufacturing processes, and improved economies of scale. This cost reduction has rendered solar panels a very appealing energy solution for residential, commercial, and industrial sectors, spurring their widespread adoption. The modular design of solar panels renders them remarkably flexible and scalable, enabling installations that cater to a broad spectrum of energy requirements.

Whether it’s a compact rooftop installation for a residence or a large-scale solar farm for utility providers, solar panels can be adjusted for various applications. This scalability has played a significant role in their expanding market share, as they can be tailored to fit differing energy consumption patterns and locations. Furthermore, solar panels require relatively little maintenance and can function for 20 to 30 years with minimal degradation, ensuring long-term energy security. Solar panels also offer considerable environmental advantages by decreasing dependence on fossil fuels, cutting carbon emissions, and encouraging sustainable energy. As worries about climate change intensify, consumers and businesses are increasingly choosing clean energy options, with solar panels being among the most accessible and efficient solutions. The incentives and rebates provided by governments, such as the Investment Tax Credit (ITC) in the United States, have further propelled the adoption of solar panels, lowering initial costs and enhancing their financial feasibility. As solar energy continues to gain momentum in North America, solar panels will persist at the forefront of the shift toward a sustainable, carbon-neutral energy future, bolstered by their economic advantages, technological innovations, and government incentives.

Ground-mounted solar systems are dominating the North American solar power market due to their significant energy generation capability, scalability, and appropriateness for large-scale utility projects.

Ground-mounted solar systems are increasingly becoming the favored option in the North American solar power market, especially for utility-scale projects, because of their enhanced energy production and scalability. In contrast to rooftop solar installations, which face limitations from available space and structural restrictions, ground-mounted systems can be deployed on expansive, open land, making them optimal for producing large quantities of renewable energy. This positions ground-mounted systems as the ideal solution for utility companies aiming to satisfy rising electricity demand with clean energy. A primary benefit of ground-mounted solar installations is their design and orientation flexibility.

Solar panels can be adjusted for optimal sunlight exposure, with angles that enhance energy production, a feature that’s more challenging to achieve with rooftop systems due to constraints in space and angle. The larger surface area available also permits the installation of additional panels, which further enhances their energy output. This makes ground-mounted systems very efficient, especially in areas with high solar exposure, like the Southwest U. S. and California. Ground-mounted solar projects are also economical on a larger scale. Given that these systems do not encounter the limitations typical of residential or commercial rooftop installations, the cost per watt of produced electricity is frequently reduced, making them appealing to large-scale renewable energy developers. The capability to deploy these systems on underutilized land - including desert areas, agricultural fields, or brownfields - increases their attractiveness. In addition, ground-mounted solar projects take advantage of beneficial government incentives and regulatory support, comprising power purchase agreements (PPAs) and renewable energy targets, which have stimulated investments and growth in this sector. As the need for large-scale renewable energy continues to climb, ground-mounted solar systems are set to sustain their prominent role in the North American solar power market, contributing significantly to achieving clean energy objectives.

The residential segment is at the forefront and expanding most swiftly in the North American solar power market, driven by growing consumer desires for energy independence, environmental sustainability, and long-term financial savings.

The residential solar market in North America is undergoing swift expansion due to a mix of declining solar panel prices, heightened awareness of climate change, and increasing electricity expenses. Homeowners are progressively choosing solar energy as a method to achieve energy independence, minimize their carbon footprint, and reduce their utility costs. A crucial element propelling this transition is the decrease in the cost of solar technology, particularly photovoltaic (PV) panels. Over the last decade, solar panel prices have dropped significantly due to advancements in manufacturing, improved economies of scale, and enhancements in the global supply chain.

This has rendered solar power more accessible and financially feasible for a broader range of homeowners. With solar panels now more budget-friendly, the payback period has decreased, creating a persuasive option for homeowners aiming to make a long-term investment. Moreover, multiple government incentives, like the Investment Tax Credit (ITC) in the U. S. and rebates in Canada, have made solar installations more appealing by lowering the initial costs. These policies offer homeowners considerable tax advantages or rebates, which further stimulate solar adoption. Many homeowners also perceive solar installations as a means to boost property value by enhancing the energy efficiency and sustainability of their residences. The increasing worries regarding climate change and the ecological impact of fossil fuels have also spurred the growth of residential solar installations. Consumers are becoming more environmentally aware and are opting to lower their carbon footprints by transitioning to clean, renewable energy solutions such as solar. Finally, the swift rise of home energy storage solutions (like batteries) enables homeowners to store excess energy produced during the day and utilize it during nighttime or overcast days. This increases the reliability of solar energy and further boosts the attractiveness of residential solar installations. The blend of affordability, governmental support, sustainability, and energy security positions the residential solar market as the fastest-expanding segment in North America.

The United States ranks as the quickest expanding country in the North American solar power market due to its extensive investments, supportive government incentives, and strong demand in both residential and commercial areas.

The United States distinguishes itself as the quickest expanding country in the North American solar power market. Several elements contribute to this swift expansion, establishing the U. S. as a worldwide leader in solar energy utilization. A primary factor is the supportive government incentives, such as the Investment Tax Credit (ITC), which provides a substantial tax break for solar installations. This incentive has rendered solar more affordable for homeowners, businesses, and utility-scale developers, significantly reducing the initial costs of solar systems. The ITC has been crucial in advancing solar growth, and its prolongation until 2032 has further motivated long-term investments in solar energy.

Another element propelling growth is the declining cost of solar technology. The price of photovoltaic (PV) panels has dropped by over 70% in the last ten years, attributed to technological advancements, economies of scale, and improved manufacturing processes. This has made solar energy more reachable and competitive with conventional fossil fuels. Consequently, both residential and commercial solar adoption has rapidly increased. The demand for solar energy in the U. S. is also driven by rising environmental awareness, particularly as the nation aims to lessen its dependence on fossil fuels and decrease carbon emissions. States such as California, Texas, and Florida have evolved into crucial centers for solar power, enjoying ample sunlight and forward-thinking renewable energy policies. The swift uptake of solar storage technologies, like home batteries, has additionally bolstered this expansion, enabling consumers to conserve surplus energy for use during off-peak times. Moreover, private sector funding and corporate sustainability goals from significant businesses are adding to the growth of solar energy. As companies increasingly strive to achieve their carbon reduction objectives, they are making substantial investments in solar power. The combination of governmental support, falling costs, rising environmental issues, and corporate demand positions the United States as the fastest-growing country in North America's solar power market.

Major Companies present in the market

Canadian Solar Inc., Trina Solar Co., Limited, Jinko Solar Holding Co., Limited, Longi Green Energy Technology Co., Limited, JA Solar Technology Co., Limited, Sunpower Corporation, First Solar Inc., Hanwha Corporation, Abengoa, S.A., Engie SA.

Considered in this report

• Geography: North America
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• North America solar power market with its value and forecast along with its segments
• Region-wise solar power market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Types of Technology in the report

• Solar Photovoltaic
• Concentrated Solar Power (CSP)
• Others

By Product

• Solar Panels
• Charge Controllers
• Batteries
• Inverters
• Others

By Installation

• Ground mounted
• Roof mounted
• Others

By Application in the report

• Residential
• Commercial/ Industrial
• Others

The approach of the report

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to solar power industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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