July 21, 2024
Home Solar System Market

Higher Residential Electricity Prices To Drive Growth Of Home Solar System Market

The global Home Solar System Market is estimated to be valued at US$ 67.20 Bn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
A home solar system consists of photovoltaic panels, an inverter, batteries and a solar racking or mounting structure. These systems convert sunlight directly into electricity that can be used to power a home and its appliances or sell back to the utility grid. Home solar systems offer various advantages such as reducing carbon footprint, lowering electricity bills by generating power from a free and abundant energy source. With growing environmental concerns and higher residential electricity prices, demand for clean and cheaper renewable energy solutions like home solar systems is increasing globally.

Market key trends:
One of the key trends in the home solar system market size is increasing adoption of battery storage systems. Battery storage allows homeowners to store excess solar power during the day and use it in the evening. It also provides backup power during electricity outages. Rising installations of batteries with solar PV systems is a major trend. Furthermore, the emergence of roof solar leasing models without upfront installation costs has boosted uptake of residential solar systems. Under these leases, homeowners pay a monthly fee to use the solar system and do not have to incur capital costs. This has made solar power more accessible and is a key trend driving market revenues.

Porter’s Analysis
Threat of new entrants: The home solar system market requires high capital investment for manufacturing plants and distribution network which acts as a barrier for new players.

Bargaining power of buyers: Buyers have high bargaining power due to availability of substitute products and options from various manufacturers.

Bargaining power of suppliers: Key components such as solar panels, batteries and inverters have few manufacturing players globally concentrating the supplier power.

Threat of new substitutes: Emergence of newer renewable sources such as wind and hydro energy can impact the home solar adoption if found cost effective.

Competitive rivalry: Major players focus on product quality, performance and pricing to gain market share in this growing industry.

Key Takeaways
The global home solar system market is expected to witness high growth, exhibiting CAGR of 17% over the forecast period, due to increasing consumer preference for cleaner sources of energy and various government subsidies and tax credits supporting home solar installations.

The Asia Pacific region dominates the global home solar system market owing to large consumer base, favorable government policies supporting renewable purchases and rising energy demand in major economies like China and India. Countries such as Japan and South Korea are also contributing significantly to the regional market growth.

Key players operating in the home solar system market are SunPower Corporation, Vivint Solar, Sunrun, Tesla, LG Electronics, Panasonic Corporation, JinkoSolar, Canadian Solar, ReneSola, Trina Solar, Yingli Green Energy, SMA Solar Technology, Enphase Energy, SolarEdge Technologies, Daqo New Energy Corp, JA Solar, LONGi Green Energy Technology, Array Technologies, First Solar, REC Group. Major players are focusing on product innovation through extensive R&D investments and strategic collaborations to strengthen their market position.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it