by The global Solar Lease Service Market is estimated to be valued at US$ 14.84 Bn in 2023 and is expected to exhibit a CAGR of 18.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Solar lease services provide the option to homeowners and businesses to install solar PV systems without any upfront equipment costs by paying a monthly fee to lease the system from the solar installer or third-party owner. This removes the high initial investment barrier for individuals and allows them to benefit from lower electricity bills and carbon-free electricity.
Market key trends:
The declining cost of solar panel installation as well as the high return on investment from solar systems are propelling the growth of the residential solar lease market. The payback period for residential solar systems ranges between 5 to 10 years depending on electricity rates and government incentives, which makes solar leasing an attractive option for homeowners to reduce their electricity costs without any large upfront investment in solar panels. Additionally, the increasing awareness about environmental benefits of solar energy coupled with government policies and incentives promoting renewable energy adoption are also contributing to the growth of the solar lease service market.
Market key trends:
The solar lease service market has been witnessing rising demand driven by the growing affordability of distributed solar energy systems and increased awareness among consumers regarding the economic and environmental benefits of solar power. Solar leasing provides a flexible financing option for residential and commercial customers to shift to solar without large upfront capital costs. This has boosted the adoption of lease models for solar panel installation. Furthermore, solar lease companies also offer operational and maintenance services over the lease period, reducing long-term costs and risks for customers.
SWOT Analysis
Strength: Solar lease models provide upfront cost savings and operational simplicity for customers. It allows widespread access to solar technology.
Weakness: Customers do not own the solar assets and have limited control over system operations and maintenance.
Opportunity: Growing shift towards renewable energy sources across both residential and commercial sectors opens up new market avenues. Rising electric rates improve the economics of solar leasing.
Threats: Policy and regulatory changes regarding net metering can impact revenue generation for leased solar systems. Trade issues and import tariffs on solar components increase costs.
Key Takeaways
The global Solar Lease Service Market is expected to witness high growth, exhibiting CAGR of 18. over the forecast period, due to increasing demand for distributed renewable energy generation among residential and commercial consumers.
Regional analysis: North America dominates the global solar lease service market currently, owing to supportive policies and initiatives promoting solar power adoption in the US. Asia Pacific is expected to emerge as the fastest growing regional market over the next decade led by China, India and Japan.
Key players operating in the solar lease service market are SunPower Corporation, SolarCity Corporation, SunRun Inc., Vivint Solar Inc., Tesla Inc., JinkoSolar Holding Co. Ltd., Canadian Solar Inc., Yingli Green Energy Holding Co. Ltd., Trina Solar Limited, JA Solar Holdings Co. Ltd., Hanwha Q CELLS Co. Ltd., LONGi Solar, Risen Energy Co. Ltd., GCL-SI, Talesun, FIRST SOLAR, Lerri Solar, Kodiak Solar, Palmetto Clean Technology, Freedom Forever.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
