Rooftop Solar Photovoltaic Market Size, Share & Trends 2031

Report Description

The global rooftop solar photovoltaic market size was nearly valued at USD 97.8 Billion in 2022 and is likely to reach USD 399.7 Billion by 2031, expanding at a CAGR of 17.71% during the forecast period, 2023–2031. The market growth is attributed to the increasing government initiatives toward promoting renewable energy sources.

Rooftop solar photovoltaics is a distributed power generation system, which consists of three major components including solar PV modules, a mounting structure to hold modules, and the inverter. Solar PV panels are installed on the roof of buildings and angled towards the sun.

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These PV panels consist of solar cells that convert sunlight into electrical energy with the help of silicon. When sunlight hits the silicon, electrons are released from their atoms and drawn toward metal conductors that are present on the sides of the solar cells and produce an electric current.

A solar panel or PV panel is made up of solar cells that are arranged in a configuration of 32, 36, 48, 60, 72, and 96 cells in which each cell produces 0.46 volts of electricity. This panel generates DC power. However, this DC power is then converted into AC power with the help of an inverter and then fed into the distribution board from there it flows to electrical loads.

Roof-mounted PV system is small compared to utility-scale or ground-mounted PV stations. It has great potential to generate electricity with minimal impact on the environment. It reduces the carbon footprint as there is no consumption of fuel. The arrangement of photovoltaic roof systems can range from small residential units to large utility-scale solar power plants.

The COVID-19 pandemic impedes the growth of the rooftop solar photovoltaic market. The price of solar panels increased during the pandemic due to a temporary ban on manufacturing & processing activities and several restrictions on import & export, which disrupted the overall supply chain of the market and reduces the installation of solar PV systems.

Rooftop Solar Photovoltaic Market Dynamics

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Key Trends

Growing adoption of captive solar power plants among large-scale industries is a major trend in the market. A captive power plant has been implemented by a company for its own consumption. It helps to save on electricity while meeting all power needs and reduces distribution and transmission losses.

Major Drivers

Rising awareness among the population regarding clean and renewable energy is expected to drive the market during the forecast period. The solar system is becoming more popular as an alternative as it does not produce any emissions. Rooftop PV is crucial in lowering electricity consumption. It reduces reliance on grid power and diesel generators by serving as a constant and reliable source of energy for users.

Furthermore, the growing requirement to minimize electricity losses during transmission and distribution accelerates the market. Increasing government initiatives to support renewable energy is likely to propel the market. Various government subsidies have encouraged consumers to invest in the generation of renewable energy.

Government offers a 30% tax credit for the installation of rooftop solar photovoltaic systems on residential buildings, which allows low-income people to adopt electricity in low price than the market rate.

Growing demand for energy using renewable sources, due to the rising environmental concern is another major factor driving the market. Using fossil fuels in power generation creates a huge amount of smoke, which increases air pollution and global warming. This in turn increases the demand for clean energy.

Existing Restraints

Energy from the sun is unpredictable and can only be harnessed during the sunlight. It means that rooftop solar PV systems cannot generate electricity during cloudy days, which hinders the market. Furthermore, long return on investment (ROI), high installation costs, and less efficiency of solar panels may restrain the market to a certain limit.

Emerging Opportunities

Electrification in remote areas is projected to create lucrative growth opportunities in the market. 100% electrification through solar PV is an excellent solution as there is no need to laying down a grid connection. However, rising requirements to minimize carbon footprint and reliance on fossil-fuel-based electricity generation are likely to fuel the market.

Scope of Rooftop Solar Photovoltaic Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Rooftop Solar Photovoltaic Market Segment Insights

Technology Segment Analysis 

On the basis of technology, the rooftop solar photovoltaic market is bifurcated into crystalline silicon and thin film. The crystalline silicon segment is expected to expand at a considerable CAGR in the coming years, owing to its high efficiency. Crystalline silicon cells are considered to be the most preferred choice as it exhibits a lifetime of more than 25 years, which further enhance the life of panels.

The low cost of manufacturing silicon semiconductors is likely to contribute to segment growth. The thin film segment is projected to grow at a significant pace during the projection period, due to its ability to generate high power. The thin film can work even during cloudy days as it does not require direct sunlight for operation.

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Grid Type Segment Analysis

Based on grid type, the market is segmented into grid-connected, hybrid, and off-grid. The off-grid segment is anticipated to register a robust growth rate during the forecast period, owing to the rising power demand from the remote areas including small villages or those places where electricity is not accessible or laying down a grid system is impossible. Then the off-grid solar system is an alternative solution as it can work independently and store energy with the help of batteries.

End-user Segment Analysis

On the basis of end-user, the market is segregated into residential, industrial, and commercial. The residential segment is estimated to generate a large share of the market during the assessment period, due to the rising ease of installation of solar PV on residential structures.

According to the IEA (International Energy Agency), the number of households dependent on solar PV is expected to exceed 100 million by the end of 2030 than existing 25 million in 2022. The segment growth is further attributed to the growing requirement for power backup in case of a power outage.

The on-grid segment is projected to grow at a high sustainable CAGR in the coming years, due to the ability to generate more power compared to others. The on-grid system is directly connected to the utility grid and generates electricity through solar PV, which further reduces the electricity bill. Moreover, it does not require batteries to store excess energy, as it itself acts as a virtual battery.

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Regional Analysis

In terms of region, the global rooftop solar photovoltaic market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is projected to dominate the market in the coming years, owing to the rising government initiatives to support renewable energy. Furthermore, the Growing focus on the electrification of remote areas is likely to boost the regional market.

The market in Europe is expected to grow at a rapid pace during the projection period, due to the rising trend of generating power through renewable energy. Stringent regulatory norms related to the deployment of sustainable energy and the increasing requirement for clean fuel power generation are likely to fuel the market in the region.

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