logo

USA Solar Energy Market Outlook to 2028

Region:North America

Author(s):Abhinav kumar

Product Code:KROD10789

Download Sample Report
Published On

January 2025

Total pages

88

About the Report

USA Solar Energy Market Overview

  • The USA Solar Energy Market is valued at 162.57 Giga Watt (GW), based on a five-year historical analysis. This growth is driven by an increasing focus on renewable energy, government incentives, and declining costs of solar panels. Federal tax credits and state-level incentives have spurred residential and commercial adoption, along with advances in solar photovoltaic (PV) technology. The integration of solar energy into utility-scale grids and the expansion of solar projects across regions further supports market growth.

USA Solar Energy Market Size

  • The market is predominantly led by states like California, Texas, and Florida. Californias dominance stems from its progressive renewable energy policies, high solar insolation, and strong state mandates for renewable energy adoption. Texas and Florida also lead due to ample sunlight and supportive regulations, coupled with a high demand for clean energy sources among businesses and households, positioning these states as leaders in solar energy deployment.
  • The federal ITC offers substantial financial relief for solar investments, reducing tax liabilities for eligible installations. This policy, responsible for boosting over 500,000 residential installations since its inception, underscores government support for renewable energy growth. According to the U.S. Department of Energy, the ITC extension aims to maintain solar adoption momentum, fostering long-term sustainability.

USA Solar Energy Market Segmentation

By Technology: The USA Solar Energy Market is segmented by technology into photovoltaic (PV) systems, concentrated solar power (CSP), and hybrid systems. Recently, photovoltaic systems have a dominant market share under the technology segment due to the high efficiency and versatility of PV technology. PV systems are easily scalable for residential, commercial, and utility applications, making them popular among both consumers and businesses. Additionally, cost reductions in PV panel production have made these systems economically viable, thereby increasing their adoption rates.

USA Solar Energy Market Segmentation By Technology

By Application: The USA Solar Energy Market is segmented by application into residential, commercial, industrial, and utility-scale. Utility-scale applications hold a dominant market share in the application segment, driven by large-scale solar farms that generate power for extensive grid distribution. These projects benefit from economies of scale, government incentives, and are often backed by power purchase agreements (PPAs) with utilities. As demand for renewable energy in bulk increases, utility-scale projects continue to gain traction over other applications.

USA Solar Energy Market Segmentation By Application

USA Solar Energy Market Competitive Landscape

The USA Solar Energy Market is dominated by a few major players, including both domestic and international companies, such as First Solar and Tesla, as well as global renewable energy firms like Canadian Solar. This consolidation underscores the market's maturity, with these key players holding significant influence due to their technological expertise, financial strength, and extensive project portfolios across the country.

USA Solar Energy Market Competitive Landscape

USA Solar Energy Industry Analysis

Growth Drivers

  • Federal Tax Credits: The U.S. governments Investment Tax Credit (ITC) for solar energy provides significant savings for residential and commercial solar installations. This tax credit, allowing up to a 30% reduction in the tax burden, contributed to over 5,000 MW of new solar installations across the country, making it a critical financial incentive in the solar energy sector. The ITC extension until 2032 further strengthens this growth driver, reflecting federal support for renewable energy. According to the U.S. Department of Energy, these incentives have driven solar adoption among both residential and commercial sectors.
  • State-Level Incentives: Individual states in the U.S., such as California and Texas, offer localized solar incentives and rebates. For example, Californias Self-Generation Incentive Program (SGIP) has facilitated nearly 1,200 MWh of storage to support solar energy projects, significantly impacting grid reliance. Texas and Arizona have introduced tax breaks for solar installers, contributing to their solar capacity increases of 10% and 12%, respectively, over the past year. These state-level incentives play a pivotal role in lowering solar PV costs, leading to rapid adoption.
  • Declining Solar PV Costs: Between 2022 and 2024, the price of solar photovoltaic (PV) panels has seen a 12% decrease due to technological advancements and manufacturing efficiencies. According to the U.S. Energy Information Administration, the average cost of solar panels dropped to $0.70 per watt, contributing to affordability and accessibility for more U.S. households and businesses. Declining installation costs have also driven an increase in new solar installations by 8% in 2024 alone.

Market Challenges

  • High Initial Investment: Despite declining solar panel costs, initial installation costs remain high, averaging $15,000 for residential systems in 2024. This high entry barrier limits access for lower-income households, impacting overall market growth. According to the U.S. Department of Energy, upfront costs for large-scale solar installations are still a hurdle for small businesses and communities.
  • Grid Integration Challenges: Grid infrastructure in the U.S. is aging, with over 70% of the grid transmission lines older than 25 years. Integrating solar energy into this system presents operational challenges, as it requires upgrading existing infrastructure to support distributed energy resources. The Department of Energy estimates that approximately $30 billion in investments is needed to modernize the grid and accommodate the growing solar energy supply.

USA Solar Energy Market Future Outlook

Over the next five years, the USA Solar Energy Market is expected to experience significant growth, driven by ongoing governmental support, advancements in solar technology, and rising consumer demand for clean energy. Additionally, utility-scale solar projects are anticipated to increase, particularly in states with favorable climates and regulatory frameworks. As renewable energy goals continue to accelerate, solar energy is expected to play a pivotal role in the countrys energy transition efforts.

Opportunities

  • Growth in Energy Storage Solutions: The integration of solar energy with storage solutions has gained traction, with the U.S. achieving over 6,500 MWh in battery storage installations as of 2024. This development allows for better grid stability and supports off-grid applications. The Department of Energy notes that advancements in battery technology have reduced costs by nearly 20% over the last two years, making storage more feasible for residential and commercial projects.
  • Expansion in Commercial Sector Adoption: The commercial sector in the U.S. is increasingly adopting solar energy, with 15 GW of new installations in businesses recorded by the end of 2024. Corporations like Amazon and Walmart are leading the charge, committing to renewable energy transitions to offset carbon footprints. According to the World Bank, commercial solar adoption is rising due to sustainability goals and long-term cost savings, creating a substantial growth opportunity in this sector.

Scope of the Report

Technology

Photovoltaic (PV) Systems
Concentrated Solar Power (CSP)
Hybrid Systems

Application

Residential
Commercial
Industrial
Utility-Scale

Component

Solar Panels
Inverters
Mounting Systems
Balance of Systems (BoS)

End-User

Utilities
Corporations
Government Bodies
Independent Power Producers

Region

Northeast
Midwest
South
West

Products

Key Target Audience Organizations and Entities Who Can Benefit by Subscribing This Report:

  • Solar Energy Development Companies
  • Utility Companies
  • Solar Panel Manufacturing Industries
  • Battery Storage Provider companies
  • Energy Investment Firms
  • Government and Regulatory Bodies (e.g., U.S. Department of Energy, Federal Energy Regulatory Commission)
  • Environmental Advocacy Companies
  • Investor and Venture Capitalist Firms

Companies

Players Mentioned in the Report

  • First Solar Inc.
  • Tesla, Inc.
  • SunPower Corporation
  • NextEra Energy
  • Canadian Solar Inc.
  • Enphase Energy, Inc.
  • Sunnova Energy International, Inc.
  • Brookfield Renewable Partners L.P.
  • Vivint Solar, Inc.
  • Duke Energy Corporation

Table of Contents

1. USA Solar Energy Market Overview

1.1. Definition and Scope

1.2. Market Taxonomy

1.3. Market Growth Rate

1.4. Market Segmentation Overview

2. USA Solar Energy Market Size (In USD Mn)

2.1. Historical Market Size

2.2. Year-On-Year Growth Analysis

2.3. Key Market Developments and Milestones

3. USA Solar Energy Market Analysis

3.1. Growth Drivers (Adoption Rate, Government Incentives)

3.1.1. Federal Tax Credits

3.1.2. State-Level Incentives

3.1.3. Declining Solar PV Costs

3.1.4. Rising Demand for Renewable Energy

3.2. Market Challenges (Infrastructure, Market Saturation)

3.2.1. High Initial Investment

3.2.2. Grid Integration Challenges

3.2.3. Regulatory Barriers

3.2.4. Limited Skilled Workforce

3.3. Opportunities (Technological Advancements, Battery Storage)

3.3.1. Growth in Energy Storage Solutions

3.3.2. Expansion in Commercial Sector Adoption

3.3.3. Innovations in Solar PV Efficiency

3.3.4. Export Opportunities

3.4. Trends (Decentralization, Hybrid Energy Systems)

3.4.1. Integration with Smart Grids

3.4.2. Rise of Community Solar Projects

3.4.3. Use of AI in Solar Monitoring

3.4.4. Hybrid Solar Systems

3.5. Government Regulation (Tax Benefits, Renewable Targets)

3.5.1. Investment Tax Credit (ITC)

3.5.2. Renewable Portfolio Standards (RPS)

3.5.3. Federal Renewable Energy Mandates

3.5.4. Environmental Compliance Standards

3.6. SWOT Analysis

3.7. Stake Ecosystem (Project Developers, Installers, Utility Companies)

3.8. Porters Five Forces (Market Dynamics)

3.9. Competitive Landscape (Installed Capacity, Regional Focus)

4. USA Solar Energy Market Segmentation

4.1. By Technology (In Value %)

4.1.1. Photovoltaic (PV) Systems

4.1.2. Concentrated Solar Power (CSP)

4.1.3. Hybrid Systems

4.2. By Application (In Value %)

4.2.1. Residential

4.2.2. Commercial

4.2.3. Industrial

4.2.4. Utility-Scale

4.3. By Component (In Value %)

4.3.1. Solar Panels

4.3.2. Inverters

4.3.3. Mounting Systems

4.3.4. Balance of Systems (BoS)

4.4. By End-User (In Value %)

4.4.1. Utilities

4.4.2. Corporations

4.4.3. Government Bodies

4.4.4. Independent Power Producers

4.5. By Region (In Value %)

4.5.1. Northeast

4.5.2. Midwest

4.5.3. South

4.5.4. West

5. USA Solar Energy Market Competitive Analysis

5.1. Detailed Profiles of Major Companies

5.1.1. First Solar Inc.

5.1.2. NextEra Energy, Inc.

5.1.3. SunPower Corporation

5.1.4. Tesla, Inc.

5.1.5. Enphase Energy, Inc.

5.1.6. Sunnova Energy International, Inc.

5.1.7. Sunrun Inc.

5.1.8. Vivint Solar, Inc.

5.1.9. Canadian Solar Inc.

5.1.10. Brookfield Renewable Partners L.P.

5.1.11. Pattern Energy Group Inc.

5.1.12. Duke Energy Corporation

5.1.13. Dominion Energy, Inc.

5.1.14. Exelon Corporation

5.1.15. EDF Renewables

5.2. Cross Comparison Parameters (Capacity Installed, Revenue, Solar Projects)

5.3. Market Share Analysis (By Region, By Segment)

5.4. Strategic Initiatives (Partnerships, Collaborations)

5.5. Mergers and Acquisitions (Recent Transactions)

5.6. Investment Analysis (CAPEX, R&D Expenditure)

5.7. Venture Capital Funding (Emerging Players)

5.8. Government Grants (Incentives, Subsidies)

5.9. Private Equity Investments

6. USA Solar Energy Market Regulatory Framework

6.1. Environmental Standards (EPA Guidelines, Clean Power Plan)

6.2. Compliance Requirements (Licensing, Permits)

6.3. Certification Processes (UL Certification, IEC Standards)

7. USA Solar Energy Future Market Size (In USD Mn)

7.1. Future Market Size Projections

7.2. Key Factors Driving Future Market Growth

8. USA Solar Energy Future Market Segmentation

8.1. By Technology (In Value %)

8.2. By Application (In Value %)

8.3. By Component (In Value %)

8.4. By End-User (In Value %)

8.5. By Region (In Value %)

9. USA Solar Energy Market Analysts Recommendations

9.1. TAM/SAM/SOM Analysis

9.2. Customer Cohort Analysis

9.3. Marketing Initiatives

9.4. White Space Opportunity Analysis

Disclaimer

Contact Us

Research Methodology

Step 1: Identification of Key Variables

The initial phase involves mapping the ecosystem of the USA Solar Energy Market, encompassing major stakeholders such as energy producers, equipment manufacturers, and regulatory bodies. This step relies on extensive desk research, drawing from secondary and proprietary databases to gather accurate market-level data and identify critical variables influencing solar energy dynamics.

Step 2: Market Analysis and Construction

This phase compiles historical data on the USA Solar Energy Market, analyzing key metrics like capacity additions, application distribution, and regulatory impacts. Market penetration and revenue generation statistics are evaluated to build a reliable market structure and assess energy supply-demand dynamics.

Step 3: Hypothesis Validation and Expert Consultation

Market hypotheses are formed and then validated through interviews with industry experts, including solar panel manufacturers and utility providers. These consultations offer valuable insights, enabling us to refine assumptions and corroborate data accuracy through expert perspectives.

Step 4: Research Synthesis and Final Output

The final phase involves synthesizing findings through direct engagement with multiple solar energy providers, which enriches our dataset. This approach ensures that projections and trends are corroborated with practical insights, offering a validated analysis of the USA Solar Energy Market.

Frequently Asked Questions

01. How big is the USA Solar Energy Market?

The USA Solar Energy Market is valued at 162.57 Giga Watt (GW), driven by a five-year trend of increasing government incentives, declining solar PV costs, and a strong push for renewable energy adoption.

02. What are the challenges in the USA Solar Energy Market?

Key challenges include high initial investment costs, grid integration issues, and regulatory complexities, which can slow down project deployment and affect scalability.

03. Who are the major players in the USA Solar Energy Market?

Notable players include First Solar Inc., Tesla, Inc., SunPower Corporation, and NextEra Energy. These companies dominate due to their extensive project portfolios, innovation in PV technology, and financial resources.

04. What are the growth drivers of the USA Solar Energy Market?

Growth drivers include federal and state-level incentives, rising energy costs, and a societal push toward sustainable and renewable energy sources, which collectively fuel demand for solar solutions.

Why Buy From Us?

RRR
Refine Robust Result (RRR) Framework

What makes us stand out is that our consultants follows Robust, Refine and Result (RRR) methodology. i.e. Robust for clear definitions, approaches and sanity checking, Refine for differentiating respondents facts and opinions and Result for presenting data with story

reach
Our Reach Is Unmatched

We have set a benchmark in the industry by offering our clients with syndicated and customized market research reports featuring coverage of entire market as well as meticulous research and analyst insights.

Research
Shifting the Research Paradigm

While we don't replace traditional research, we flip the method upside down. Our dual approach of Top Bottom & Bottom Top ensures quality deliverable by not just verifying company fundamentals but also looking at the sector and macroeconomic factors.

Insite
More Insights-Better Decisions

With one step in the future, our research team constantly tries to show you the bigger picture. We help with some of the tough questions you may encounter along the way: How is the industry positioned? Best marketing channel? KPI's of competitors? By aligning every element, we help maximize success.

Trust
Transparency and Trust

Our report gives you instant access to the answers and sources that other companies might choose to hide. We elaborate each steps of research methodology we have used and showcase you the sample size to earn your trust.

support
Round the Clock Support

If you need any support, we are here! We pride ourselves on universe strength, data quality, and quick, friendly, and professional service.

Why Client Choose Us?

400000+ Reports in repository
150+ Consulting project a year
100+ Analysts
8000+ Client Queries in 2022