Solar Energy Systems Market Highlights

• Global solar energy systems market revenue is poised to garner USD 853.2 billion by 2032 with a CAGR of 18.9% from 2024 to 2032
• Asia-Pacific solar energy systems market value occupied around USD 106.8 billion in 2023
• The Middle East & Africa solar energy systems market growth will record a CAGR of more than 20% from 2024 to 2032
• Among product, the solar panels sub-segment generated more than USD 77.4 billion revenue in 2023
• Based on end use, the utility sub-segment generated around 66% solar energy systems market share in 2023
• Smart grid integration optimizes solar energy distribution and management is a popular solar energy systems market trend that fuels the industry demand

Solar energy systems convert the sun's energy into electricity or heat. They typically consist of solar panels, inverters, and, on occasion, batteries. Solar panels convert sunlight into direct current (DC), which is then converted to alternating current (AC) by inverters and used to power homes or businesses. Batteries can store excess solar energy for later use when there is less sunlight or a higher demand.

Solar energy systems are divided into two categories: photovoltaic (PV) and solar thermal. PV systems employ photovoltaic cells to turn sunlight into electricity. They're appropriate for grid-connected, off-grid, and hybrid applications. Solar thermal systems harness the sun's energy to heat water or air for space or water heating.

Solar energy systems have several benefits. They are a clean, renewable energy source that helps to minimize greenhouse gas emissions and reliance on fossil fuels. Furthermore, the cost of solar energy systems has dropped dramatically in recent years, making them more accessible to a broader variety of users. Many homeowners and businesses install grid-tied solar systems, which generate electricity for personal use while also selling excess power back to the utility grid. Off-grid solar systems are used in rural areas where grid electricity is unavailable. They usually have batteries to store electricity for use at night or on cloudy days.

As technology advances and costs fall, solar energy is expected to play an increasingly vital part in satisfying global energy demands.

Global Solar Energy Systems Market Dynamics

Market Drivers

• Lower solar panel costs make systems more affordable internationally
• Government incentives and subsidies drive solar energy uptake
• Concerns about climate change are driving up demand for renewable energy
• Advances in energy storage improve solar system reliability

Market Restraints

• High upfront installation costs deter some consumers
• Solar power’s intermittency affects reliable energy generation
• Land use conflicts hinder large-scale solar farm approvals

Market Opportunities

• Off-grid solar solutions expand access in remote regions
• Floating solar farms solve land scarcity and improve efficiency
• Emerging markets in developing regions drive new growth opportunities

Solar Energy Systems Market Report Coverage

Solar Energy Systems Market Insights

The cost of solar photovoltaic (PV) modules has dropped dramatically over the last decade. In 2010, the average cost of a solar panel was roughly $4/watt. By 2023, the cost per watt had dropped to less than $0.30. This remarkable cost drop has made solar energy more affordable and accessible to a broader variety of users, resulting in higher adoption rates.

Solar power generation is inherently intermittent since it depends on sunshine, which is affected by weather and time of day. Grid operators must balance energy supply and demand, which can be difficult due to fluctuation. However, advances in energy storage technology, such as lithium-ion batteries, are helping to alleviate this problem by storing extra solar energy for later use during periods of little or no solar power.

Countries with strong sun irradiation and rising energy demand, such as India, China, and those in Africa and South America, present considerable prospects for solar energy deployment. India, for example, has set lofty goals for increasing its solar power capacity and has established a variety of regulations and incentives to encourage investment in the solar sector. According to the International Renewable Energy Agency (IRENA), India's solar power capacity is projected to reach 300 GW by 2030.

Solar Energy Systems Market Segmentation

The worldwide market for solar energy systems is split based on product, source end use, and geography.

Solar Energy Market By Product

• Charge Controllers
• Solar Panels
• Inverter
• Batteries
• Others

According to solar energy systems industry analysis, the solar panels category is dominant due to its vital function in gathering and converting sunlight into power, accounting for a substantial percentage of the market. According to the International Renewable Energy Agency (IRENA), solar PV module prices plummeted by more than 90% between 2010 and 2020, increasing adoption. Solar panels, particularly high-efficiency monocrystalline and bifacial panels, are widely used for residential, commercial, and utility-scale applications. As a result, the solar panel sector is expected to expand, particularly in areas with significant government subsidies. This increase is consistent with a projected annual growth rate of 20-25% in global solar PV installations, which is propelling the solar energy sector forward.

Solar Energy Market By Source

• MRO
• New Installation

The solar energy systems market is divided into two main categories: maintenance, repair, and operations (MRO) and new installation. While both sectors play important roles, the New Installation category has emerged as the solar power market leader. The expanding global focus on renewable energy, as well as the growing demand for sustainable energy solutions, have greatly accelerated the expansion of the new installation category. As countries throughout the world attempt to decrease their carbon footprint and meet their renewable energy targets, investment in solar energy projects has increased.

Furthermore, as the cost of solar technology has decreased, together with favorable government regulations and incentives, solar energy has become more affordable and accessible. This has accelerated the adoption of new solar installations for both residential and commercial purposes. According to a recent research, the worldwide solar energy systems market is expected to exceed $1 trillion by 2030, with the new installation segment accounting for a large share of that development.

Solar Energy Market By End Use

• Utility
• Commercial
• Residential
• Industrial

The utility category dominates the solar energy systems market, accounting for almost 66% of the total market due to large-scale sun farm installations. Utility-scale solar projects, which can often exceed hundreds of megawatts, are important to reaching global renewable energy targets.

In 2022, the United States alone added more than 12 gigawatts of utility-scale solar power, with greater growth anticipated as states tighten renewable portfolio regulations. Large energy companies and utilities are increasing their solar investment to reduce carbon emissions and stabilize long-term energy costs. Utility-scale solar projects will continue to be dominant over the solar energy systems market forecast period, which runs from 2024 to 2032.

Solar Energy Systems Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Solar Energy Systems Market Regional Analysis

Regional differences in the solar energy systems market are caused by differences in solar adoption, government policies, and natural resources. Asia-Pacific dominates the solar power market, led by China, India, and Japan. China, the world's top solar energy producer, plans to deploy more than 50 GW of new solar power in 2022 alone, thanks to huge government subsidies and massive solar farms. India follows closely after, with lofty objectives of achieving 280 GW of installed solar capacity by 2030, making it an important growing market.

In North America, the United States is the notable player, with solar capacity expansion supported by tax breaks and sustainable energy initiatives. The Inflation Reduction Act of 2022 extended federal incentives with the goal of doubling solar capacity in the United States by 2030. Meanwhile, Europe is fast developing, spearheaded by countries such as Germany and Spain, both of which have set ambitious solar capacity objectives to minimize dependency on fossil fuels.

Solar Energy Systems Market Players

Some of the top solar energy systems market companies offered in our report includes Delta Electronics, Inc., Tesla, SMA Technologies, Sungrow, Schneider Electric, Samsung SDI Co., Ltd., Jinko Solar, BYD Company Ltd., SunPower Corp., Fimer Group, Trina Solar, and LONGi.