Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Rooftop Solar PV Market size was valued at USD 129.44 billion in 2024 and is expected to reach USD 871.52 billion by 2037, registering around 15.8% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of rooftop solar PV is evaluated at USD 145.8 billion.
Solar energy is one of the most efficient and eco-friendly sources of power available today. Unlike fossil fuels, solar energy does not produce greenhouse gas emissions or air pollutants, making it a crucial solution in combating climate change. By harnessing sunlight through photovoltaic panels, individuals and businesses can significantly reduce their carbon footprint while benefiting from a renewable and abundant energy source.
One of the key advantages of solar energy is its independence from nonrenewable resources. Once installed, solar panels generate electricity without requiring fuel or producing harmful products, ensuring a clean and sustainable energy supply. Additionally, the solar power system offers long-term economic benefits, including lower electricity bills and potential government incentives. A rooftop solar PV installation is a type of electrical installation setup used to meet the energy demand of a building within an existing distribution network.
The rooftop solar model plays a key role in helping distribution businesses lower peak-hour demand while reducing transmission and distribution losses associated with on-site electricity generation and consumption. This model is instrumental in avoiding the demand for costly investments in commercial transmission infrastructure. More importantly, it reduces the dependence on grid power and diesel generators by offering users a stable, long-term, and reliable source of energy.
The rooftop solar model demonstrates significant cost-effectiveness compared to commercial and industrial electricity, with tariff rates lowered up to 25%. Moreover, the residential sector also gets benefits from the rooftop solar concept, as it provides power directly to their building through the grid. This model not only ensures affordability but also provides long-term reliability and sustainability. Rooftop solar systems are highly versatile, capable of being erected in various places including the rooftops of commercial and residential buildings, parking lots, and other available spaces, using essential components such as inverters and monitoring equipment. Rooftop solar applications utilize capacities ranging from 1 watt to several GW both on and off the grid. This rising need for rooftop solar is largely driven by incentive programs such as feed-in tariffs for surplus power from self-consumption systems, tax credits, power purchase agreements, and technology-specific renewable portfolio standards and tenders.
Rooftop Solar PV Market: Growth Drivers and Challenges
Growth Drivers
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Government policies and regulations: Globally, governments are implementing favorable policies including feed-in tariffs (FiTs), tax incentives, and renewable portfolio standards (RPS), to promote the adoption of solar PV systems. These initiatives provide financial incentives to homeowners and businesses, making rooftop solar installations more affordable and appealing. FiTs and RPS, play a crucial role in promoting solar energy adoption. FiTs guarantee a fixed, premium price for electricity generated by solar rooftops, ensuring long-term financial stability for system owners. This incentive attracts investment by making solar energy financially viable and competitive with conventional energy sources.
Additionally, FiTs, provide predictability for investors, encouraging large-scale rooftop solar projects and fostering market growth.RPS further strengthens the solar industry by mandating a specific percentage of electricity generation from renewable sources. These policies create consistent demand for solar power, encouraging innovation and driving down costs. By implementing such regulations, governments stimulate private investment in solar rooftop installations, ensuring a steady transition towards clean energy. For example, Germany's FiT program significantly contributes to its leadership in solar energy adoption.
By guaranteeing above- rooftop solar PV market rates for solar-generated electricity, the policy incentivized widespread solar panel installation, ultimately reducing costs and increasing grid parity. Additionally, regulatory measures increasingly mandate integrating rooftop solar PV systems to meet certain energy efficiency standards. This regulatory push also stimulates the further need for rooftop solar PV installations during the forecast period. -
Technological advancements: Innovations such as developing high-efficiency solar panels, including perovskite tandem cells, have markedly improved energy conversion rates. For instance, JinkoSolar’s tandem solar cell based on N-type TOPCon set new record with a conversion efficiency of 33.84% in January 2025, surpassing JinkoSolar’s previous record of 33.24%. Similarly, Hanwha Qcells reached a world record of 28.6% efficiency on a full-area M10-sized perovskite silicon tandem cell, using an industrial silicon wafer designed for integration into an industrial module.
Advanced inverted technologies and optimized system designs have further enhanced the reliability and costs of rooftop solar PV systems. These technological enhancements have resulted in shorter payback periods for installations, thus making them increasingly appealing to both homeowners and businesses.For instance, LONGi announces the new world record efficiency of 30.1 for the commercial M6 size wafer-level silicon perovskite tandem solar cell, demonstrating the practical applications of these technological enhancements.
Rising energy costs: As electricity prices from traditional fossil fuel sources continue to increase, solar PV systems have become increasingly cost-competitive. In numerous regions, the cost of electricity generated by rooftop solar PV installation is now compared to or even lower than that of grid-supplied electricity. The International Energy Agency (IEA) reports that China is expected to address increasing electricity demand in the upcoming years due to structural changes in its economy. In 2023, the country’s electricity consumption grew by 6.4%, driven primarily by services and industrial sectors.
China's electricity consumption per capita already surpassed that of the European Union by the end of 202 and continues to rise. The expansion of solar PV modules, electric vehicles, and related material processing is expected to sustain strong electricity demand, reflecting the country’s evolving economic structure and commitment to industrial growth.This economic benefit is anticipated to drive higher adoption rates of rooftop solar PV systems among both homeowners and businesses.
The graph below indicates an upsurge in energy prices globally:
Source: International Monetary Fund via FRED
Challenges
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High initial investment: Despite the substantial long-term savings associated with rooftop solar installations, the significant upfront costs can deter many consumers. For instance, in the U.S. the industry average cost for solar systems is between USD 3 to USD 4 per watt. A typical 7 KW residential solar system in the U.S. averages approximately USD 24,500 without including the 30% federal ITC Investment Tax Credit. By including the tax credit, the costs were further reduced by USD 7,350.
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Furthermore, several state and local incentives such as rebates and tax credits, further alleviate the financial burden. Financing options, including solar loans and power purchase agreements, enable homeowners to adopt solar energy with minimal initial expenditure, effectively addressing the barrier of high upfront costs. Additionally, numerous state and local incentives, further alleviate the financial burden. Financing options, including solar loans and PPAs (Power Purchase Agreements), enable homeowners to adopt solar energy with minimal initial expenditure, effectively addressing the barrier of high upfront costs.
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Intermittency of solar energy: Rooftop solar PV systems rely on sunlight, leading to intermittent energy generation that poses challenges for consistent power supply. Energy storage solutions, such as lithium-ion batteries, can mitigate this issue by storing excess energy produced during peak sunlight hours for use during periods of low solar output. However, the high costs associated with these storage technologies remain a significant barrier to widespread adoption.
Rooftop Solar PV Market: Key Insights
| Report Attribute | Details |
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
15.8% |
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Base Year Market Size (2024) |
USD 129.44 billion |
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Forecast Year Market Size (2037) |
USD 871.52 billion |
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Regional Scope |
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Rooftop Solar PV Segmentation
Grid (Off-grid and On-grid)
On-grid segment is projected to capture rooftop solar PV market share of around 85.3% by the end of 2037. This dominance is primarily attributed to cost savings and net metering policies, which facilitate consumers to receive financial credit by feeding excess electricity generated by their solar panels back into the grid. Additionally, larger businesses are increasingly adopting on-grid solar systems to improve sustainability, minimize operational costs, and reduce reliance on fossil fuels. The high ROI associated with on-grid systems, due to their low maintenance and operational costs, further contributes to the expansion of the rooftop solar photo voltaic industry.
The off-grid rooftop solar PV market is anticipated to experience a high CAGR during the forecast period. This is highly driven by the increasing need in remote areas lacking grid infrastructures. Access to electricity is crucial for economic development and essential services, including healthcare and education. For example, in the Amazon village, solar energy projects have brought electricity to Indigenous communities, improving their quality of life and access to information. Off-grid solar systems offer a cost-effective alternative to traditional energy sources, minimizing greenhouse gas emissions and environmental footprints, and thereby contributing to the industry's growth.
Technology (Thin Film, and Crystalline Silicon)
Based on technology, the crystalline silicon segment is the key player and is expected to have the biggest impact on the rooftop solar PV market due to its long-lasting applications. Thin film panels often come with warranties ranging from 20 to 25 years. Notably, crystalline silicon panels can continue to function effectively for up to 35 years, maintaining over 80% of their original power output beyond their warranty period. Their strong design, featuring tempered glass, enhances resistance to environmental factors such as high temperatures and ultraviolet rays, thereby ensuring long-term performance.
On the other hand, thin-film solar panels are generally less expensive, and approximately 30% cheaper than crystalline silicon panels. This is primarily due to simpler manufacturing processes and reduced material costs. However, thin film panels typically exhibit lower efficiency rates and shorter lifespans, averaging around 20 to 25 years, which may offset their initial cost advantage over time. Hence, thin-film panels offer lower upfront investment, and crystalline silicon panels provide greater long-term value through enhanced durability and sustained energy production.
Our in-depth analysis of the global rooftop solar PV market includes the following segments:
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Technology |
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Grid |
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End use |
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Rooftop Solar PV Industry - Regional Synopsis
Asia Pacific Market Statistics
Asia Pacific rooftop solar PV market is projected to hold revenue share of over 41.4% by the end of 2037. This growth is driven by favorable government initiatives, such as subsidies and incentives promoting clean energy adoption, and an increasing emphasis on energy conservation. Rapid development in countries like China, India, and Japan has escalated energy demand in the commercial and industrial sectors. The rise in urbanization and industrialization is highly responsible for the increasing need for energy.
The residential need for energy and their consumption has seen a sudden strike due to the living standards of people in this region. Furthermore, technological enhancements and the declining costs of solar panels and installations have made rooftop solar PV systems more accessible, further propelling the rooftop solar PV market growth. The industry in China, Japan, and India is further driven by favorable government policies that offer subsidies and financial incentives for solar PV projects, together with the current major market participants.
China is dominating the rooftop solar PV market in the region. This dominance is primarily attributed to rapid urbanization and industrialization which have heightened energy demands, promoting a shift towards distributed energy generation to minimize reliance on traditional carbon emissions and achieving climate goals further propelling rooftop solar PV market growth. Notably, the government has mandated that 50% of rooftop space on party and government buildings, 40% for public buildings, 30% for industrial & commercial space, and 20% for rural households, significantly influencing the dynamics of the rooftop solar PV industry.
North America Market Analysis
North America rooftop solar PV market is poised for substantial growth during the forecast period, driven by heightened awareness of climate change and a collective shift towards reducing carbon footprints among consumers and businesses. This trend is further bolstered by rising electricity prices, prompting homeowners to seek alternative energy solutions, thereby positioning the residential sector as a significant contributor to market expansion.
The U.S. rooftop solar PV market is propelled by governmental initiatives aimed at reducing fossil fuel consumption and promoting photovoltaic energy adoption. A pivotal policy, the Investment Tax Credit (ITC), allows homeowners to deduct 30% of their solar energy system installation costs from their federal taxes, significantly lowering the financial barriers to solar adoption. Additionally, environmental campaigns highlighting the urgency of addressing climate change and reducing carbon emissions have motivated consumers to transition to renewable energy solutions, further bolstering the market.
In Canada, the rooftop solar PV market has experienced notable growth, driven by strong government support and financial incentives. The federal government offers tax credits and grants, such as the Canada Greener Homes Grant, providing homeowners with up to USD 5,000 for installing solar panels. Moreover, certain municipalities, like the Town of Banff, offer additional rebates to encourage solar adoption. These incentives, coupled with a national commitment to reducing reliance on fossil fuels, have spurred increased investment in rooftop solar installations across the country.
The growing consumer demand for clean energy solutions aligns with Canada's environmental objectives, positioning the rooftop solar PV market for continued expansion. For example, A homeowner in Ontario can benefit from the Canada Greener Homes Grant, receiving a 30% rebate for installing solar panels. Additionally, making the transition to solar energy more financially feasible. These combined incentives not only reduce the initial investment cost but also contribute to long-term energy savings and environmental benefits.
Companies Dominating the Rooftop Solar PV Market
- SunPower Corporation
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Solimpeks Corp.
- Yingli Solar
- Vikram Solar Limited
- Trina Solar Limited
- KYOCERA Corporation
- JA Solar Co., Ltd.
- RelyOn Solar Pvt Ltd
- Sunshot Technologies
The rooftop solar PV market is characterized by a dynamic landscape where major industry players are actively engaged in product innovation and strategic geographic expansion. Leading companies are investing in research and development to improve efficiency and reduce the costs of their offerings. This competitive environment remains fragmented with numerous small and medium-sized enterprises vying for rooftop solar PV market share. However, a trend towards consolidation is emerging as larger corporations acquire smaller firms to broaden their product portfolios and extend their global reach. The rooftop solar PV market is expected to grow continuously during the forecast period, and we will likely see even more competition in the future.
Recent Developments
- In January 2025, Aptera Motors Corp., LG Energy Solution Ltd., and CTNS Co., Ltd. signed a Memorandum of Understanding (MOU) at CES 2025 in Las Vegas. This milestone is a significant step forward in the development of solar electric vehicle (sEV) technology. Aptera's solar electric vehicles are designed to use renewable energy and provide a greener and more efficient alternative to traditional mobility alternatives. This strategic cooperation demonstrates Aptera, LG Energy Solution, and CTNS' shared commitment to driving innovation and improving sustainable transportation.
- In March 2024, JA Solar agreed with PowerChina Huadong Engineering Corporation Limited, stipulating that JA Solar is required to supply 480 MW of photovoltaic (PV) modules for the CEME1 480MW Project, recognized as the largest PV installation in Chile.
- In January 2024, Emmvee Photovoltaic Power Pvt. Ltd., a prominent manufacturer of solar panels, announced that it has entered into a supply agreement with KPI Green Energy Ltd. This agreement entails the provision of 300MWp of Bifacial MonoPERC Solar panels for a solar plant with a capacity of 240 MW located in Gujarat.
Author Credits: Ipseeta Dash
- Report ID: 3364
- Published Date: Mar 21, 2025
- Report Format: PDF, PPT
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