Rooftop Solar Photovoltaic Market Size to Cross $370 Billion Revenue by 2030

Rooftop Solar Photovoltaic Market Snapshot

“The Global Rooftop Solar Photovoltaic Market is expected to grow rapidly at a 15.5% CAGR consequently, it will grow from its existing size of from $131.52 billion in 2023 to $370 Billion by 2030.”

A rooftop solar photovoltaic system is a kind of electrical installation set-up on the roof, which converts the sun's energy to electricity. Solar PV rooftop systems can be described as a kind of distributed power generation system that can cater to the energy needs of buildings that are part of the distribution network that is already in place.

Rooftop solar PVs serve as an investment that protects end-user customers from fluctuations in the prices of electricity. End-user segments can estimate their electricity production costs for the next 10 years due to the ease of the calculation of the price of electricity generated by the solar panels. The trend is expected to have a positive impact on the market landscape over the forecast time.

How do we define solar energy from the roof and what exactly is a roof the top of solar systems?

Solar energy is the energy that comes by radiant sunlight and heat from the sun, which generates solar thermal energy and electricity that includes water heating and solar architecture. Solar radiation, in conjunction with other sources of solar energy are the most readily available source of renewable energy.

Solar technologies mostly comprise of active energy or passive energy based on the way sunlight is absorbed, converted, and distributed.Active solar technologies refer to photovoltaic modules (also known as photovoltaic panels) as well as solar thermal collectors which transform sunlight into productive outputs. Active solar technology boosts energy production and is considered an alternative technology, while passive solar technology lessens the requirement for other resources and is typically considered to be as a demand-side technology.Passive solar technologies are:

• Buildings are orientated towards the sun.
• The selection of suitable thermal mass materials or properties for light dispersion.
• Spaces that naturally allow air to circulate.

Rooftop solar energy system also referred to as rooftop PV systems is an photovoltaic (PV) system that includes solar panels that produce electricity and are positioned on the roofs of structures, whether they are commercial or civil structures. A solar power system comprises of photovoltaic panels and mounting systems as well as solar inverters, cables as well as other electrical equipment. Rooftop solar panels are usually tiny compared to ground-based power stations.

The majority of roof-mounted PV systems are grid-based systems. The PV systems installed on homes generally are able to handle that range from 5 to 20 Kilowatts (kW) in comparison to commercial buildings generally can be found between 100 kilowatts to one megawatt (MW).

A rooftop photovoltaic system is one that has its electricity-producing solar panels mounted on the roof of a home or other building. Photovoltaic modules as well as cables, mounting systems solar inverters, cables, and other electrical components are a few of the components that make up the system. When compared to photovoltaic power stations which are mounted on ground and are able to operate of up to megawatts rooftop-mounted systems are smaller.

The most well-known benefit in solar energy is it's an unadulterated, green source of energy. Solar energy is a significant way to reduce the carbon footprint of your home. Solar energy isn't harmful to our environment at all. Therefore, it is safe and considerate of the natural environment. Installing solar panels in your home is secure and simple way to help support an environmentally sustainable future since it's independent.

Demand Outlook

Rooftop solar panels are growing due to its numerous advantages that they provide, such as the ability to provide off-grid and on-grid the flexibility and affordability. The eco-friendly design of solar panels for rooftops is driving the demand for them in both developed and developing nations around the world. The energy payback period (EPBT) of a 2kWp rooftop solar array is about 2 to 3 years. Thus, rooftop solar systems are being utilized as a cost-effective and efficient choice.

Tax credits as well as specific renewable portfolio standards for technology (RPS) as well as tenders as well as traditional feed-in tariffs, or power purchase arrangements are employed to increase the need for solar panels on rooftops (PPAs). The cost of solar panels for rooftops have dropped significantly, due to increased research and development carried out by manufacturers. This has boosted the demand for solar rooftop systems across the world.

Photovoltaic (PV) system is made up comprising one or several solar panels, an inverter as well as other electrical and mechanical components that harness solar energy to create electricity. The photovoltaic effect occurs that occurs when sunlight, comprised of energy particles called photons, enters the solar panel and creates the electric charge. Each panel produces a tiny amount of energy, but when it is linked to other panels an array of solar panels can produce more energy. Furthermore the dimensions of solar photovoltaic systems vary widely, ranging from tiny rooftop systems to massive power generation facilities that can be used for utilities.

The most well-known benefit to solar energy is it's an environmentally-friendly, clean source of energy. The carbon footprint of your home can be drastically reduced making use of solar energy. Solar energy does not pollute the natural environment. It is therefore safe and eco-friendly. It's completely independent, so the addition of solar panels to the roof of your home is safe and easy way to help an environmentally sustainable future.

In order to assist distribution companies decrease their peak hour demand, as well as distribution and transmission loss resulting from on-site electricity production and consumption rooftop solar technology is crucial. This is a crucial step in not having to invest into commercial transmission networks. The main benefit is the fact that it reduces dependence on grid power and diesel generators by providing consumers with a long-term, continuous reliable sources of power.

The value-for-money of the rooftop solar system is proven by comparing it with industrial and commercial electricity. up to 23 percent of tariff rates are reduced. Rooftop solar is also beneficial to the residential sector since it could be able supply electricity directly to buildings via the grid. This kind of model is likely to be more reliable and durable and still inexpensive in terms of tariffs.

By utilizing the remainder part of the setup, that includes inverters and monitoring equipment rooftop solar panels are an ideal alternative since they can be placed at a variety of places which include the rooftops of commercial and residential structures and over parking areas. Rooftop solar systems can be operated in both off and on the grid and have capacities ranging from a single watt to GW. Due to this, roof solar panel systems are highly regarded over alternative eco-friendly alternatives to generate energy.

The demand for rooftop solar panels is driven by a variety of incentives programs, like charges for the feed-ins of surplus power generated through self-consumption systems. Tax credits, feed-in tariffs, also known as Power Purchase Agreements and renewable portfolio standards and tenders that are based on technology.

Key Takeaway

• Asia Pacific region accounted largest market share of approximately 41% in 2023.
• The On-Grid segment has generated 77% of the total revenue share by 2023.
• Technology-wise, the thin film segment represented for a market share of more than 35% by 2023.
• In 2023 the crystalline silicon segment has racked up 30.5 percent market share
• In terms of application the industrial sector accounted for 41.5% of the market share in 2023.
• In 2023, the segment commercial represented 31% market share

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Rooftop Solar Photovoltaic Market Dynamics, Drivers, Growth Factors, Drivers & Trends

Roof solar models are vital for helping distribution companies in reducing peak demand as well as reducing the distribution and transmission losses that are attributed to electricity generated on site and consumption. This model is crucial to avoid the necessity for investment in transmission systems used by commercial companies. In addition, it reduces dependence on grid power and diesel generators, serving as a continuous long-term and reliable source of energy for consumers.

Comparing rooftop solar with industrial and commercial electricity shows how efficient it is. The rates for tariffs are reduced by as much as 25 percent. Residential properties benefit from rooftop solar in addition to the fact that it can supply electricity directly to their homes via the grid. Regarding tariff rates this system is not just affordable, but can also last longer and be more reliable. Rooftop solar systems are an excellent option since they can be set up in many different locations such as the roofs of commercial and residential buildings as well as on parking areas with the remainder of the system that includes inverters as well as monitoring equipment.

Rooftop solar systems can have capacities that range from 1 watt to several GW as well as off grid. Rooftop solar panel systems are a preferred source of energy compared to other eco sustainable options. Demand for rooftop solar systems is driven through a variety of incentive programs, which include charges for the feed-ins of surplus power produced through self-consumption systems such as tax credits, traditional feed-in tariffs and Power Purchase Agreements and sustainable portfolio standard and tenders, which are based on technology.

Furthermore, technological advances will result in more efficient solar panels, which can further propel the development market.

High Efficiency and Declining Energy Payback Time Supported by Government Subsidies and Tax Credits

Rooftop solar systems are placed in a variety of locations like commercial and residential rooftops as well as above parking spaces with balance of system components including transformers, inverters and cables and monitoring equipment, making them an excellent choice. Rooftop solar capacity ranges from 1 watt to GW for grid-connected as well in off-grid installations. Rooftop solar systems are an extremely popular alternative to other alternative green sources. Demand for solar rooftop systems is driven by different incentive mechanisms including renewable portfolio standards that are specific to technology (RPS) and tax credits, tenders and feed-in tariffs, which are traditional Power Purchase Agreements (PPAs) as well as the payment of charges for the feed-ins of surplus power generated in self-consumption systems.

Rise in Adoption of Distributed PV Technology Globally

Distributed PVs (DPVs) that have a power capacity under 100 watts are the preferred choice for rooftop solar panels. However, since the challenges with FIT remain for DPV solar leasing, it has grown in popularity and will increase the market for rooftop solar. Demand for DPV is growing in a steady manner due to the large number of installations in advanced countries like Japan along with the U.S. The electricity generated through DPV is readily available at affordable costs; therefore the local government in China has modified its policies to allow systems with less than 20 MW as DPV.

Certain of the major developments that could shape the short-term market forecast include the continued growth of utility PV, which isn't covered by the renewable portfolio standard (RPS) obligations and a rise in procurement by cooperative and municipal utilities. Utilities are now voluntarily adding large-scale solar to resource planning as a hedge because of the competitive pricing and to deal the fluctuation in price for natural gas as well as other fossil fuels.

Extensive Use of Rooftop Solar PVs for Off-grid Solar Solutions to Drive Global Market

In terms of applications the global market for rooftop solar PV is divided into on-grid and off-grid. Off-grid is predicted to lead the market in the forecast time. Off-grid solar systems are an alternative to the storage of renewable energy in light of the imminent energy crisis and the volatility of the price of oil. Off-grid solar systems operate in a completely independent manner and store energy with the aid of batteries.

Rooftop Solar Photovoltaic Market Segment Analysis

Technology Insights

Depending on the technology and the type of technology, the silicon crystalline segment is the most dominant and is expected to make the most impact on the rooftop solar photovoltaics due to its longevity implementation. There are a variety of 20-25 year warranty options, and 30 year guarantees are common.

According to certain estimates that crystalline solar panels will continue to generate power for 50 years or more. Additionally, due to its greater resistant to breaks. Tempered glass protects the cells and makes them able to endure flying debris, like the ones created by windstorms. Tempered glass is not compatible with thin films, whereas flat glass is more fragile. However, other surfaces, such as metal and plastic, can also be coated with a thin layers to enhance their durability.

The price of thin film panels, which are around 30% lower than the cost of crystalline panels is among its major advantages. This is due to the module's design and installation process.

Grid Insights

During the timeframe projected of time, the off-grid market is predicted to grow with the fastest CAGR of 2023 until 2032. The government's demands to find solutions that have a focus on sustainability drive the Off-Grid Solar industry. The rising cost of electricity and the near total depletion in fossil fuel resources might cause a rise in the demand. Solar power systems that are off grid to power remote communities as well as light villages could also boost the demand. Solar panel producers could receive incentives, as well as subsidies. These could be offered to communities who install solar panels. This could encourage the expansion of markets.

Solar power systems that are on-grid can be directly linked to the power grid and utilize the solar power system to produce electricity. It is expected to see substantial improvements in the market for solar photovoltaics on rooftops. These systems are able to feed excess solar power back into the grid, while consumers get paid for the additional power they use. The grid of electricity and these systems work in tandem.

The system is powered by grid power when there's insufficient sunshine to meet the demands of your business. If the power usage is too high and you are looking to cut your electric bills These systems are the ideal for you. You can implement on-grid systems, either with or without net meters. These systems are not functional in the event of power outages because they are linked to the grid in general.

End Use Insights

In terms of the final usage, the residential segment dominates the market. Solar photovoltaic panels in the residential sector is rising principally due to the anticipated cost of electricity savings, the requirement to have a backup power source and the need to lessen the threat of climate changes. Additionally, in recent years the cost of rooftop solar PV for residential applications has significantly decreased. The global capacity for residential photovoltaics has substantially increased because of the cost reduction.

Large power plants typically supply electric power across huge networks to the final customers. Transmission over long distances results in power loss. With the distance being so close that solar energy is generated on rooftops, it can be useful in boosting the efficiency of electricity. The domestic energy sector is currently taking care of its own expenses and the energy usage. Furthermore, because the solar energy systems are durable they are less at risk of disruptions to service.

The industrial sector has seen an impressive increase in the rooftop the solar photovoltaic industry. Because solar energy is eco-friendly and doesn't harm the environment, it is most often favored. Because industries are governed by specific rules and regulations set by the government officials, it is required of industries to utilize alternative energy sources to reduce the use of natural resources. more rely upon solar power.

Competitive Landscape of the Rooftop Solar Photovoltaic Market

• Trina Solar Limited
• KYOCERA Corporation
• JA Solar Co., Ltd.
• Canadian Solar Inc.
• RelyOn Solar Pvt Ltd
• Sunshot Technologies
• Sharp Corporation
• Pristine Sun LLC
• Solimpeks Corp.
• Yingli Solar
• Vikram Solar Limited

Recent Developments in Rooftop Solar Photovoltaic Market

30 June, 2023: Solar installations see 3.2 per cent growth at 872 MW in January-June: Mercom

• Rooftop solar installations in the country grew by 3.2 per cent to 872 megawatt (MW) during January-June period of 2023, Mercom India said. In H1 or first half of 2022, 845 MW of rooftop solar capacities were installed in India, the research firm said.

In June 2023, NTPC Vidyut Vyapar Nigam Limited (NVVN), a subsidiary of NTPC, inaugurated a solar project at IIT Jodhpur. The new rooftop solar project has a capacity of 1 MW, and the project is set to reduce carbon emissions and make a remarkable step towards a greener environment. The project was established under the Renewable Energy Service Company (RESCO) model.

In January 2023, the Ministry of New and Renewable Energy (MNRE) announced a hike in rooftop solar subsidies for the residential category. MNRE hiked Central Financial Assistance (CFA) to install Rooftop Solar (RTS) in the Indian residential sector. The new subsidy rates would apply to the Northeast regions.

In January 2023, Telangana State Renewable Energy Development Corporation Ltd (TSREDCO) installed solar panels on 500 school buildings to promote decentralized electricity generation and avoid power shedding issues. TSREDCO aims to complete the work by March 2023.

In April 2021, Amplus Solar Power Pvt. Ltd, a member of the Petronas Group of Malaysia, announced that it had acquired 17 solar rooftop assets of Sterling & Wilson, totaling 7.2 megawatts (MW). The company also revealed that the 17 projects of Sterling & Wilson supply to 13 leading industrial, commercial, and institutional customers. Such developments are expected to help the company consolidate its position in the rooftop solar PV market.

In September 2021, Tata Motors entered into an agreement with Tata Power to install and operate a 3 MWp rooftop solar project at its passenger vehicle business unit (PVBU) plant in Pune, India

Khimji Ramdas (KR) has announced a strategic partnership with Nafath RE, a top SME in the renewable energy sector, to design, develop, install, and commission Solar Energy systems in the Sultanate of Oman. This comes as Oman begins to work toward achieving its ambitious goal of converting 27% of its energy sources to renewable energy by 2030. The partnership signing ceremony was organized to mark the installation of Oman's first significant 1 MW rooftop solar PV plant.

In July 2019, Sharp Energy Solutions installed a solar power system on rooftop of production plant of Yokohama Rubber Co. Ltd., to reduce electricity spending of the company.

In 2018 Tata Solar Power, an India-based company that manufactures and implements solar PV rooftop systems, reported that a rooftop PV system has been installed at the Wankhede Cricket Stadium in Mumbai, India

In 2017, The European Investment Bank and the International Solar Alliance signed a partnership deal. The partnership is for 800 Mn Euro financial aid to support India's renewable energy project. The collaboration between the two organizations helpful to raise funds for the development of affordable solar energy in nations with plenty of sunlight.

In June 2017, Sharp Corporation has entered in a definitive agreement with Thailand’s largest hypermarket retailers named Big C stores, to develop a 16 MW solar rooftop PV portfolio to support use of renewable and green source of energy.

Rooftop Solar Photovoltaic Market Regional Insights

The biggest market share and a dominant spot in the solar photovoltaic rooftop industry is in Asia-Pacific due to the huge demand for energy. The region comprises countries such as China, India, Japan, South Korea, and other countries around the globe. The increase in industrialization and urbanization is the reason for the increasing demand for energy.

The need for energy in homes and the consumption of energy has experienced an abrupt drop because of the rising standard of living of people in the region. The solar industry of solar power in China, Japan, and India is driven by the favorable policies of the government that provide financial incentives as well as subsidy for solar PV projects along with the presence of large market players.

Europe is predicted to be a major player. For Europe, Germany is anticipated to be the main player in a significant share in the overall market. The increasing capacity of rooftop solar photovoltaics is being supported by the growing trend of generating more electricity by using renewable energy sources.

This market is being driven by stringent regulations regarding the use of renewable energy sources. In expanding the availability of renewable energy sources it is expected to reduce dependence on imported and conventional energy sources. The use of solar energy is more reliable than traditional electricity.

North America is projected to be a major contributor of the market, including that of the U.S. being the major source of revenue for that market. Growing demand for power generated from clean fuels as well as a significant increase in the capacity of solar for residential use, is expected to increase the utilization roof solar panels across the United States over the next couple of years.

Segments Covered in the Rooftop Solar Photovoltaic Market

Rooftop Solar Photovoltaic Market By Technology

• Thin Film
• Crystalline Silicon
• Others

Rooftop Solar Photovoltaic Market By Grid Type

• Off-grid
• On-grid

Rooftop Solar Photovoltaic Market By End Use

• Residential
• Industrial
• Commercial

Rooftop Solar Photovoltaic Market By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)

Frequently Asked Questions:

What is the current size of rooftop solar photovoltaic market?

Global Rooftop Solar Photovoltaic Market is expected to grow rapidly at a 15.5% CAGR consequently, it will grow from its existing size of from $131.52 billion in 2023 to $370 Billion by 2030.

Who are the prominent players operating in the rooftop solar photovoltaic market?

The major players operating in the rooftop solar photovoltaic market are Sharp Corporation, Pristine Sun LLC, Solimpeks Corp., Yingli Solar, Vikram Solar Limited, Trina Solar Limited, KYOCERA Corporation, JA Solar Co., Ltd., Canadian Solar Inc., RelyOn Solar Pvt, Ltd, Sunshot Technologies

Which are the driving factors of the rooftop solar photovoltaic market?

The rooftop solar PV systems' small size and ease of installation on residential buildings are the main factors driving the industry.

Which region will lead the global rooftop solar photovoltaic market?

Asia-Pacific region will lead the global rooftop solar photovoltaic market during the forecast period 2023 to 2030.