On-Grid Solar PV Market Size & Share, By End-Use (Residential, Commercial & Industrial, Utility), Regional Forecast, Industry Players, Growth Statistics Report 2024-2032

Market Outlook:

On-Grid Solar PV Market was over USD 164.18 Billion in 2023 and is expected to surpass USD 261.32 Billion by end of the year 2032, observing around 5.3% CAGR between 2024 and 2032.

• Base Year Value (2023): USD 164.18 Billion
• CAGR (2024-2032): 5.3%
• Forecast Year Value (2032): USD 261.32 Billion
• Historical Data Period: 2019-2023
• Largest Region: Asia Pacific
• Forecast Period: 2024-2032

Market Dynamics:

Growth Drivers & Opportunity:

One of the major growth drivers in the on-grid solar PV market is the increasing focus on renewable energy adoption globally. Governments around the world are pushing for a transition away from fossil fuels as part of their commitments to combat climate change. This has led to favorable policies, incentives, and financial support for solar installations, making it more affordable for both residential and commercial entities to adopt solar energy. As more stakeholders recognize the environmental and economic benefits of solar power, the market is expected to expand rapidly.

Another significant growth driver is the technological advancements in solar energy systems, which continue to enhance the efficiency and effectiveness of solar panels. Innovations such as improved photovoltaic materials, bifacial panels, and smart inverter technologies are allowing for higher energy yields and increased system reliability. As these technologies become more accessible and affordable, they are likely to attract more consumers to the on-grid solar PV market, further driving growth.

The rising electricity prices also serve as a crucial growth driver for the on-grid solar PV market. As traditional energy sources become more expensive due to various factors such as resource depletion and geopolitical tensions, consumers are actively seeking ways to mitigate costs. On-grid solar PV systems offer the opportunity for customers to generate their own electricity, reducing dependence on utility providers and ultimately lowering electricity bills. This economic incentive is prompting both residential and commercial sectors to invest in on-grid solar solutions.

Report Scope

Report Coverage	Details
Segments Covered	End-Use
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	Trina Solar, Canadian Solar, JA SOLAR Technology Co.,, JinkoSolar, First Solar, Havells India., GCL-SI, Motech Industries, RISEN ENERGY Co., LTD, Ndosolar, LONGi, LOOM SOLAR PVT. LTD., Amplus Solar, Sunova Solar, Rays Power Infra

Industry Restraints:

Despite the growth potential, the on-grid solar PV market faces several restraints, one of which is the high initial capital investment required for solar installations. Although prices have decreased in recent years, the upfront costs associated with purchasing and installing solar PV systems can still be a significant barrier for many consumers. This financial challenge can deter potential users, particularly in regions where government incentives and financing options are limited.

Another key restraint is the intermittency and variability of solar energy production. Unlike traditional energy sources that can provide a consistent and controllable output, solar energy generation is dependent on weather conditions and time of day. This creates challenges in grid management and can lead to reliability concerns for utilities and consumers. As such, the necessity for effective energy storage solutions and advanced grid infrastructure becomes essential, but these additional requirements can complicate the integration of on-grid solar PV systems.

Regional Forecast:

North America

The On-Grid Solar PV market in North America is primarily driven by the United States, which holds a significant share of the market. A combination of federal and state incentives, such as the Investment Tax Credit (ITC) and Renewable Portfolio Standards (RPS), stimulates growth in solar installations. California leads the U.S. in solar capacity with aggressive policies aimed at reducing greenhouse gas emissions. The market is further supported by advancements in solar technology, declining costs of photovoltaic modules, and increasing awareness of sustainable energy solutions among consumers. Canada is also showing progress, particularly in provinces like Ontario and Alberta, which offer incentives and supportive policies for renewable energy, although the adoption rate lags behind that of the U.S.

Asia Pacific

Asia Pacific is a dominant player in the On-Grid Solar PV market, with China leading as the largest producer and user of solar energy worldwide. Government initiatives such as the Feed-in Tariff (FiT) and various subsidy programs have propelled the country to install vast PV capacities, aiming for energy independence and pollution reduction. Japan and South Korea are also significant contributors to the regional market. Japan’s commitment to renewable energy post-Fukushima has led to robust investments in solar technology and infrastructure. South Korea's Green New Deal emphasizes renewable energy, supporting both residential and commercial solar projects. Overall, the Asia Pacific region benefits from a combination of government support, technological advancements, and increasing private sector investments.

Europe

Europe's On-Grid Solar PV market is characterized by a strong focus on sustainability and renewable energy policies. The United Kingdom, Germany, and France are key players in this region. Germany remains a pioneer in solar energy, supported by policies such as the Feed-in-Tariff system, which has encouraged widespread adoption. The country aims to achieve carbon neutrality by 2045, which fuels further investments in solar technologies. The United Kingdom has witnessed a growth in solar capacity thanks to the Contracts for Difference (CfD) scheme that promotes renewable energy projects. France is increasingly ramping up its solar capacity with government incentives and a focus on achieving its renewable energy goals under the Energy and Climate Act. The European Union's commitment to renewable energy and climate change mitigation continues to foster a favorable environment for solar PV deployment.

Segmentation Analysis:

In terms of segmentation, the global On-Grid Solar PV market is analyzed on the basis of End-Use.

Residential

The residential segment of the On-Grid Solar PV Market has witnessed significant growth owing to increasing awareness of sustainable energy solutions among homeowners. With rising electricity costs and the desire for energy independence, many households are opting for solar photovoltaic systems to reduce their utility bills. The availability of government incentives and rebates has further propelled adoption in this segment. Additionally, the trend of smart homes and advancements in solar technology, such as efficient panels and battery storage, have made residential solar solutions more attractive. This segment is expected to continue expanding as more homeowners recognize the long-term financial and environmental benefits of on-grid solar installations.

Commercial & Industrial

The commercial and industrial segment represents a substantial portion of the On-Grid Solar PV Market as businesses seek to minimize operating costs and reduce their carbon footprint. Companies across various sectors are increasingly investing in solar energy solutions to achieve energy efficiency and sustainability goals. The ability to secure stable energy prices and maintain energy reliability further drives interest in solar installations within this segment. Moreover, large-scale organizations often have more capital to invest in solar infrastructure and can leverage power purchase agreements (PPAs) to offset upfront costs. As energy demands grow and regulatory frameworks evolve, the commercial and industrial sector is likely to see more strategic investments in on-grid solar technologies.

Utility

The utility segment is a critical player in the On-Grid Solar PV Market, characterized by large-scale solar installations that feed energy directly into the grid. Utilities are increasingly integrating solar energy into their portfolios as part of a broader strategy to diversify energy sources and comply with renewable energy mandates. This segment benefits from significant investments in solar farms, which enable economies of scale and lower cost per watt. Furthermore, the ongoing development of advanced grid infrastructure and smart grid technologies enhances the integration of solar power and improves energy distribution efficiency. With growing concerns about climate change and emissions, the utility sector is expected to continue scaling up on-grid solar projects, playing a pivotal role in the global transition towards renewable energy.

Competitive Landscape:

The competitive landscape in the On-Grid Solar PV Market is characterized by a diverse array of players ranging from large multinational corporations to regional firms specializing in renewable energy solutions. This market is driven by increasing energy demand, favorable government policies, and a global push toward sustainable energy sources. Key players are investing heavily in technological advancements, such as improved solar panel efficiency and storage solutions, to enhance their competitive edge. The competition is further intensified by price fluctuations and the need for compliance with environmental regulations. Collaborative partnerships and strategic alliances are common as companies seek to expand their market presence and leverage innovative technologies to meet customer demands.

Top Market Players

1. First Solar

2. SunPower Corporation

3. Trina Solar Limited

4. Canadian Solar Inc.

5. JinkoSolar Holding Co., Ltd.

6. Yingli Green Energy Holding Company Limited

7. Hanwha Q CELLS

8. Suntech Power Holdings Co., Ltd.

9. LONGi Solar

10. REC Group