The U.S. residential solar PV market is projected to hit an impressive USD 17.68 billion by 2030, expanding at a robust CAGR of 14.4% from 2024 to 2030. This significant growth is primarily fueled by the surging demand for clean, renewable energy and increasingly strict regulations aimed at curbing carbon emissions.
Driving Forces Behind Market Expansion
Governments worldwide are increasingly embracing solar energy for power generation, recognizing its clean and renewable attributes. Many nations have set ambitious targets to reduce their reliance on conventional energy sources and cut down carbon emissions by promoting solar power. This growing demand has led to economies of scale, subsequently lowering the cost of solar components and making residential solar PV system installations more financially viable.
Regional Impact and Declining Costs
Emerging U.S. states like California, Texas, and Arizona are expected to significantly boost the residential solar PV industry due to their escalating energy needs. The consistent decline in the price of solar energy system components over the past decade has made solar installations increasingly attractive for homeowners, a trend anticipated to continue throughout the forecast period.
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New Construction and State-Level Growth
The new construction segment within the U.S. residential solar PV market is poised for substantial growth. This is largely attributed to the increasing adoption of government regulations that mandate the installation of solar PV in newly built homes. States such as California and Texas are set to lead this industry expansion, driven by substantial investments in solar PV and their continually rising energy demands. The sustained decrease in solar PV system component costs is expected to further stimulate demand in the residential sector.
U.S. Residential Solar PV Market Report Highlights
- Various state governments have set targets to reduce carbon emissions and have implemented policies to promote the adoption of solar PV systems in the residential sector which is expected to boost the solar PV demand over the forecast period
- The retrofit segment accounted for about 71.70% of the market share in 2023. Solar PV is the most complex component in solar energy systems and received the highest investments for R&D
- In 2023, California accounted for the largest revenue share of 23.84% in 2023.The rest of the U.S. is expected to account for the maximum share
U.S. Residential Solar PV Market Segmentation
Grand View Research has segmented the U.S. residential solar PV market based on construction and state:
U.S. Residential Solar PV Construction Outlook (Capacity, MW; Revenue, USD Million, 2018 - 2030)
- Retrofit
- New Construction
U.S. Residential Solar PV State Outlook (Capacity, MW; Revenue, USD Million, 2018 - 2030)
- California
- New York
- Arizona
- New Jersey
- Massachusetts
- Texas
- Rest of the U.S.
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