Residential Solar PV Module Market Analysis

Residential Solar PV Module Market Analysis

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Based on connectivity, the market is segmented as on-grid and off-grid. The on grid segment will grow at a rate of over CAGR 5% by 2032 owing to their contribution towards growing electricity demand especially during peak hours coupled with businesses adopting on-grid systems as a part of their sustainability initiatives. Rising government legislations and schemes to expand solar energy infrastructure and reduce dependency on fossil-based power supply across households will stimulate the business trends.
 

In addition, increasing investments for the establishment of strong supply chain of components & materials for project development will sway the business trends. For instance, according to IEA, till August 2022, China had invested more than USD 50 billion in new PV supply capacity.
 

Based on mounting, the residential solar PV module market is segmented as ground mounted and rooftop. Rooftop segment is anticipated to grow over USD 34.5 billion by 2032. Introduction of favorable incentives by economies to enhance PV capacity building and encourage clean electricity generation will stimulate the industry trend. For instance, in February 2023, the South African government introduced rooftop solar tax incentive across individuals to invest in solar photovoltaics.
 

Moreover, extensive technological enhancements along with shifting focus of major manufacturers to adopt effective, precise, and standardized solar products have led to the development of advanced solar solutions, thereby propelling the industry outlook.
 

Asia pacific residential solar PV module market will grow at a CAGR of more than 3.5% by 2032. Growing environmental awareness along with increasing emphasis on sustainable living will rise the demand for these equipment. The availability of innovative financing models, including power purchase agreements (PPAs) and solar leasing along with strict government solar targets across emerging economies will penetrate the product installation. Additionally, surging electricity demand to foster rural electrification have increased the solar power generation, thereby driving the industry growth across the region.
 

For instance, in January 2024, the Ministry of Power of India announced its installed power generation capacity of nearly 426 GW, with more than 8 GW contribution from non-fossil fuel sources in the year 2023-24.