by The global Home Solar System Market is estimated to be valued at US$ 67.20 Bn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Home solar systems consist of photovoltaic panels, solar modules, charge controllers, batteries, and inverters installed in residential buildings to harness solar energy and convert it into electricity. Solar energy is a clean and renewable source of energy that does not cause pollution. Home solar systems provide homeowners with an alternative to conventional electricity from the grid and help reduce their electricity bills significantly. They also contribute to reducing the carbon footprint. Additionally, various governments around the world are offering subsidies and tax exemptions to promote solar rooftop installations, which is fueling the demand for home solar systems.
Market key trends:
One of the key trends in the home solar system market is the emergence of roof tile solar panels. These solar panels are designed to seamlessly blend into the architecture of buildings as roofing tiles. They are increasingly gaining popularity as an aesthetic alternative to traditional solar panels. Furthermore, technological advancements are leading to the development of more efficient solar modules and building integrated PV (BIPV) systems. Companies are also focusing on decentralized battery storage solutions that allow homeowners to store solar electricity for use even when the sun is not shining. The growing adoption of small-scale smart energy management systems and Internet of Things (IoT)-based monitoring solutions for home solar systems is another prominent trend in the market.
Porter’s Analysis
Threat of new entrants: Low cost of solar panels and availability of government subsidies have lowered the barriers to entry in the home solar system market. However, presence of established players and need for technical expertise pose threats to new entrants.
Bargaining power of buyers: Growing awareness about clean energy and various incentive programs have increased bargaining power of buyers. However, need for large upfront investment and switching costs reduce bargaining power.
Bargaining power of suppliers: Major suppliers such as panel, inverter and battery manufacturers wield significant bargaining power due to differing technology standards and proprietary knowledge.
Threat of new substitutes: Alternate renewable sources such as wind and geothermal energy pose threats. However, scalability and ease of installation make solar most suitable for households.
Competitive rivalry: The presence of numerous global and regional vendors has led to high competitive rivalry. Players compete based on product quality, reliability, pricing and performance.
Key Takeaways
The Global Home Solar System Market Size is expected to witness high growth, exhibiting CAGR of 17.% over the forecast period, due to increasing environmental concerns and supportive government policies and incentives. The U.S. and China represent the largest markets, while India and other Asian countries are expected to witness fastest growth.
The market size for 2023 is US$ 67.20 Bn. The U.S. dominates the market currently owing to favorable regulatory policies and falling solar component prices. In China, government initiatives to increase renewables in energy mix and new project completions will drive future growth. India is emerging as high potential market supported by ‘Solar rooftop’ program and KUSUM scheme to promote solar use in agriculture.
Key players operating in the home solar system market are SunPower Corporation, Vivint Solar, Sunrun, Tesla, LG Electronics, Panasonic Corporation, JinkoSolar, Canadian Solar, ReneSola, Trina Solar, Yingli Green Energy, SMA Solar Technology, Enphase Energy, SolarEdge Technologies, Daqo New Energy Corp, JA Solar, LONGi Green Energy Technology, Array Technologies, First Solar, and REC Group. SunPower Corporation leads the market with a strong distribution network and innovative panel technology
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
