Rooftop Solar PV Market Size, Share & Trends Analysis Report By Technology (Thin Film, Crystalline Silicon, Others), By Grid Type (On Grid, Off Grid), By Application, And Segment Forecasts, 2020 - 2027

Report Overview

The global rooftop solar PV market size was valued at USD 66.84 billion in 2019 and is projected to progress at a compound annual growth rate (CAGR) of 6.1% from 2020 to 2027. Rising deployment of renewable energy for electricity generation along with abundant availability of solar energy during the day is expected to drive the market growth. Rooftop solar PVs act as a secure investment for end-use customers against the fluctuating electricity prices. End-use segments can calculate their electricity generation cost for another ten years owing to the fact that the price of power generated from these photovoltaics can be calculated with ease. This trend will positively influence the industry landscape over the forecast period.

The U.S. market is anticipated to expand at a prominent CAGR on account of rising demand across the private and public sectors for green electricity, declining cost of rooftop solar PVs, and robust federal policies such as solar investment tax credit. According to the Solar Energy Industries Association, the U.S. solar industry achieved an installed solar capacity of 78 GW across the country and generated USD 18 billion in investment in 2019.

The value chain of rooftop solar PVs includes mounting structures and trackers suppliers, raw material suppliers, rooftop module manufacturers, distributors, and end-use consumers from residential, commercial, and industrial segment. Large number of manufacturers practice vertical integration owing to the easy integration of various interdependent services of the supply chain such as the wholesale distribution of product, project planning & construction, and operations and maintenance services.

Covid-19 pandemic is projected to severely impact the global rooftop solar PV supply chain. Increased solar panel prices, stagnant international trading, material supply shortages, and manufacturers facing labor shortages are among the prominent factors negatively influencing the market growth. Disruption in the supply chain due to delayed solar projects is expected to majorly impede the growth of the rooftop solar photovoltaic market.

Technology Insights

Thin film segment occupied a dominant market share of over 35% in 2019 and is expected to expand at the highest CAGR over the forecast period. The growth can be attributed to thin film manufacturing from lightweight and flexible materials, strong durability, and narrow design. Thin film rooftop solar PV majorly finds application in the commercial sector as they have lower installation costs due to their light weight.

The crystalline silicon segment occupied a 30.6% share of market revenue in 2019. Low cost manufacturing of silicon semiconductors, extended lifecycle of panels, and low weight volume ratio are among the key factors driving the segment growth. Mono crystalline rooftop solar PV made from fine grade silicon possesses enhanced space efficiency when compared to thin film modules.

Application Insights

The industrial sector accounted for the largest revenue share of around 40% in 2019 and is anticipated to maintain its dominance over the forecast period. Rooftop solar provides energy for industrial heating and cooling, which otherwise would be sourced from fossil fuels generating harmful emissions. Growing industrialization across developing economies is expected to provide a major impetus to the market demand over the forecast period.

The residential segment is expected to expand at the highest CAGR over the forecast period. Off-grid rooftop solar PV equipped with an energy battery storage system provides reliable secondary power in residential households, thereby boosting product demand across the segment. Deployment of large scale storage systems to protect against peak demand power changes have resulted in the adoption of extra-large rooftop solar PV system to store desired power in batteries.

The commercial segment occupied 30.37% of market revenue share in 2019. Growing penetration rooftop solar PV across hospitals, hotels, and corporate offices along with rising power demand from data centers & communication base stations is expected to propel the product demand across the commercial sector. In addition, module level monitoring, improved energy yield, and enhanced panel efficiency are among the major factors propelling the segment growth.

Grid Type Insights

On-grid segment accounted for the largest revenue share of over 85% in 2019, as it offers the benefit of transferring the excess electricity generated to the grid and no battery storage needs to be installed near the system source. Non-complexity of grid connected rooftop PV systems along with low operating and maintenance costs is bound to generate positive demand for on-grid segment market growth.

Off-grid segment is projected to ascend at the highest CAGR over the forecast period owing to growing power demand from remote locations coupled with stringent regulatory schemes for decentralized power generation. Off-grid rooftop PV are self-sustaining systems, saving and storing solar power into a battery energy storage system for later use when the grid power goes down.

Regional Insights

The Asia Pacific region accounted for the largest revenue share of over 30% in 2019 and is expected to continue its dominance over the forecast period. China accounted for the largest contributor to the market revenue generation. Favorable government policies providing financial incentives and subsidies to solar PV projects along with the presence of large market players are among the significant factors contributing to the market growth in China.

The European regional market captured a revenue share of over 26.52% in 2019. U.K. registered for the largest revenue market share in Europe. Increasing trend of generating power through renewable energy is adding to the rising rooftop solar PV capacity. Moreover, stringent regulatory reforms regarding clean energy deployment are driving the regional market growth.

North America occupied a significant market share, with the U.S. being the major revenue contributor to regional growth. The growing requirement for clean fuel power generation along with the surging capacity of residential solar is anticipated to enhance product penetration across the country in the forthcoming years.

Key Companies & Market Share Insights

Strong R&D, skilled man power, the security of raw material feedstock, technology sourcing, and a high degree of forward integration are among the prominent factors governing the competitiveness in the industry. The market players supply rooftop solar PVs through several distribution channels such as direct supply to the end users, via different online portals, and third-party supply contracts. Rooftop Solar PV includes several value chain services such as project planning and development, design, engineering, and construction, wholesale distribution, and operations and maintenance services. Industry participants cluster these interdependent activities to reduce transaction costs and optimize their cost structures across the vertically integrated supply chain. Some prominent players in the rooftop solar PV market include:

• JA Solar

• JinkoSolar

• SunPower Corporation

• Shenzhen Yingli New Energy Resources Co., Ltd,

• ReneSola

• First Solar

• Talesun

• Trina Solar

• LONGi Solar

• Canadian Solar

• Hanwha Q-CELLS

• Risen Energy

• GCL-SI

• Indosolar

• E-Ton Solar

Rooftop Solar PV Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global rooftop solar PV market report on the basis of technology, grid type, application, and region:

• Technology Outlook (Revenue, USD Billion, 2016 - 2027)

  • Thin Film

  • Crystalline Silicon

  • Others

• Grid Type Outlook (Revenue, USD Billion, 2016 - 2027)

  • On Grid

  • Off Grid

• Application Outlook (Revenue, USD Billion, 2016 - 2027)

  • Residential

  • Commercial

  • Industrial

• Regional Outlook (Revenue, USD Billion, 2016 - 2027)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • Russia

    • U.K.

    • Spain

    • Italy

    • France

  • Asia Pacific

    • China

    • Japan

    • South Korea

    • India

    • Australia

  • Central & South America

    • Brazil

    • Colombia

    • Paraguay

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • South Africa

    • Egypt