Residential Solar PV Market Size

Residential Solar PV Market Size

The global residential solar PV market was valued at USD 94.2 billion in 2024 and is estimated to grow at a CAGR of 7.9% from 2025 to 2034. A residential solar photovoltaic (PV) system is a setup that uses solar panels to capture sunlight and convert it into electricity for a home. In a typical system, the energy generated by the solar panels can be used to power the home, and any surplus energy can be stored in batteries or sent back to the electric grid for credit or compensation, depending on local policies and regulations.

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The introduction of net metering schemes, combined with power purchase agreements and the integration of renewable energy, has created a favorable landscape for the industry. Features such as low maintenance, durability, cost efficiency, and zero noise pollution, along with the promise of reduced electricity bills, are fueling the industry's growth. Rising energy costs, particularly in electricity prices, have bolstered the competitiveness of PV in several countries.
 

Government initiatives, such as tariffs, auctions, and tax exemptions, alongside regulatory reforms like asset and financial leveraging, subsidies, and other financial programs, are augmenting the market growth. Increasing focus on green energy and carbon footprint reduction along with shift towards more integrated and aesthetically pleasing solar systems will drive the business scenario. Furthermore, the increasing global shift towards solar energy, driven by commitments to carbon emission targets, is expected to bolster the market's growth.