Residential Solar Energy Systems Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028F By Product Type (Solar Panels (Monocrystalline, Polycrystalline, and Thin Film), Solar Inverter (Central, String, and Micro) and Solar Batteries (Lithium Ion, Lead Acid, and Flow Battery)), By Service (New Installation, Maintenance & Repair), By Region and Competition

Global residential solar energy market is predicted to proliferate during the forecast period. The growth of the market can be attributed to the increasing demand for energy and the rising awareness of renewable energy sources among others.

Solar energy is defined as the energy obtained from solar radiation, which can be used and transformed into different forms of energy, that is electrical energy and heat energy. This energy is abundant and renewable, making it an attractive replacement to traditional fossil fuels, which are finite and add to climate change. Solar energy can be employed through various technologies, including solar cells that change sunlight directly into electricity, or concentrated solar energy systems. Also, utilize the heat of the sun to conduct electricity or hot water for various purposes. There are various advantages of using solar energy including reducing dependence on fossil fuels, more sustainable energy and reducing greenhouse gas emissions.

Declining Price and Installation Cost of Solar PV Systems

The average cost of a solar PV panel has dropped globally by approximately 90% as compared to the last decade. The prices of more components have dropped considerably since 2011, reducing the Levelized Cost of Electricity (LCOE) for both residential and utility-scale solar PV generation. There are techno-economic and geopolitical factors which are estimated that solar PV panel prices is going to reduce slightly. Additionally, the price is expected to decline in the forecast period. The United States National Renewables Energy Laboratory stated that there has been a reduction in the cost of residential rooftop, commercial, and utility-scale PV systems by 64%, 82% and 69% since 2010. The decline in the prices of solar panels in the United States and Europe are majorly due to the decrease in the price of solar panels. Thus, it is expected to rise in the market of solar energy and drive the demand for solar energy in these regions. Furthermore, many residential and commercial consumers opt for rooftop solar PV systems to reduce energy costs and recovery time due to a decline in prices as lower panel costs enable us to sign of Power Purchase Agreements (PPA) with consumers at a lower cost for large-scale utility project operators.

Investment in Renewable Energy

The global residential solar energy market is projected to grow due to rising investments in infrastructure of renewable energy sources and favorable government laws and subsidies to support innovative new technology across the region. Additionally, there is a wide range of countries including the United States, Canada, India, China, Saudi Arabia, Australia, and Mexico, etc. increasing their investment in the renewable energy industry and focusing on clean energy & declining carbon emission by the end of 2050, as per the Paris Agreement. For instance,

In September 2021

In April 2022

In May 2022

In October 2022

Increasing Focus on Low Carbon Emissions

The rising focus on low carbon emissions has a direct influence on the residential solar energy market. The Paris Agreement is focused on reducing the emission of CO2 by enhancing the usage of solar and renewable energy. The adoption of solar energy helps to decrease the dependence on other forms of energy including fossil fuels, coal, and oil, allowing market players to produce electricity from a renewable energy source. Furthermore, In addition, the employ of solar energy has the additional benefit of regulating temperatures and lowering stress on cooling systems and air-conditioners in commercial and industrial settings. Currently, with the increasing demand for cost-effective energy solutions and low-emission, solar energy is becoming an increasingly attractive option for businesses. The utilization of solar energy raises environmental sustainability, disaster resilience, and efforts to oppose climate change. Also, Rapid global phase-out of coal to decrease costs and accomplish low-carbon objectives. The adoption of clean renewable energy has increased. Also, this includes improving air quality by promoting rural development with off-grid electricity using solar energy. Thus, the produced energy is then utilized to generate electricity or can be collected in batteries. Therefore, these various types of applications are expected to enhance the demand for solar energy globally. In some cases, the price of renewable energy is competitive, and unsubsidized renewable energy is likely to be less expensive as compared to new conventional generators. Thus, above mentioned factors enhance the need for solar energy rises along with the need for sustainable energy systems.

Recent Developments/ Investment

• In May 2023, Saudi Arabia's Public Investment Fund's which is a subsidiary of the Water & Electricity Holding Company and ACWA Power invested USD 3.25 billion to develop and operate 4.55 GW of solar power projects across the country.
• In March 2023, the president of the United States of America invested USD 0.5 trillion in clean energy and climate action for the upcoming years.
• In Feb 2023, In the Asia Pacific region, India attracted an investment of over USD 20 billion in renewables 2023 and required a strong framework for sustainable power. This led to a boost in the market for residential solar energy in the upcoming years.
• In January 2023, the Saudi Arabia government invested around USD 266 billion in the clean energy industry across the nation. Additionally, the government has aimed to install transport lines and a distribution network to export energy across the world and produce green hydrogen.
• In October 2022-2023, the Australian government invested around 17 billion in the projects of clean energy and renewables across the nation. The government has allotted a record investment of approximately USD 17 billion to focus on clean energy and provide a greater direction towards the net zero commitment by the end of 2050.
• In July 2021, PUB, Singapore's national water agency, planned to develop one of the world's largest single-floating solar photovoltaic systems in the Tengeh Reservoir. Sembcorp would be in charge of building the solar farm and when completed, able to power around 16,000 four-room Housing Board flats. This is a significant step that illustrates Singapore's desire to increase its usage of renewable energy and, eventually, convert its reservoirs into "energy batteries.
• In October 2021, 100 MW molten salt solar thermal power plant, also known as "super mirror power plant".  Additionally, more than 12,000 heliostats, and sparkles are in the Gobi Desert in Dunhuang, China. Chinese enterprises designed & invested and constructed the plant. The power plant is one of the world's highest molten-salt solar thermal power plant, which was designed to generate 390 million kilowatt-hours of power annually.

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