Comprehensive Snapshot of Rooftop Solar PV Market Research Report, Including Regional and Country Analysis in Brief.
Industry: Energy & Utilities
Delivery Timelines: Please Contact Sales
Published Date: May-2025
Format: PPT*, PDF, EXCEL
Number of Pages: 200
ID: PMRREP35304
The global rooftop solar PV market size is estimated to grow from US$ 64.8 billion in 2025 to US$ 178.7 billion by 2032. The market is projected to record a CAGR of 15.6% during the forecast period from 2025 to 2032. According to the Persistence Market Research report, the market for rooftop solar photovoltaic (PV) systems is rapidly expanding as more consumers and businesses seek sustainable energy solutions. This growth is driven by government incentives and advancements in solar technology. Rooftop solar systems are becoming an increasingly popular option for energy generation.
The residential sector, in particular, is experiencing significant growth as individuals look to reduce their energy bills and achieve greater energy independence. Additionally, commercial and industrial sectors are also adopting rooftop solar installations to meet sustainability goals and diminish reliance on traditional power sources. This trend is further supported by favorable policies in many regions around the world.
Key Industry Highlights
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Global Market Attribute |
Key Insights |
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Rooftop Solar PV Market Size (2025E) |
US$ 64.8 Bn |
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Market Value Forecast (2032F) |
US$ 178.7 Bn |
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Projected Growth (CAGR 2025 to 2032) |
15.6% |
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Historical Market Growth (CAGR 2019 to 2024) |
17.3% |
The growing adoption of on-grid rooftop solar systems is driving the expansion of the rooftop solar PV market, particularly in residential areas. Net metering policies allow homeowners to feed excess solar power back into the grid in exchange for credits, reducing electricity bills and making solar energy an attractive investment. The declining costs of installation and equipment, along with government incentives and awareness campaigns, further accelerate this shift towards sustainable energy.
The introduction of NEM 3.0 reduced compensation for excess solar power, which has led to innovation in solar-plus-storage solutions. In 2024, many California homeowners are combining rooftop solar systems with batteries, enabling them to store power during the day and use it during peak evening hours when grid rates are higher. With continued state support and rising electricity prices, solar energy is increasingly seen as a smart, long-term investment for households.
High initial installation costs for crystalline silicon-based rooftop solar systems are a significant barrier in emerging and low-income markets. Although solar energy offers long-term savings, the upfront capital required to purchase and install panels, inverters, and associated equipment often makes these systems unaffordable for many households and small businesses. This cost barrier is particularly pronounced in regions with limited access to affordable financing, subsidies, or government incentives.
Underdeveloped installation and maintenance infrastructure can lead to higher service charges, which further deters widespread adoption. As a result, rural or underserved communities face financial hurdles that slow market growth and hinder progress toward energy access goals in areas where solar power could have the most transformative impact.
The expansion of rooftop solar systems above 1 MW into the industrial segment presents significant growth opportunities, fueled by global decarbonization efforts. Industries are increasingly adopting renewable energy solutions to lower carbon emissions and meet sustainability targets, with strong support from government policies and incentives.
Large-scale rooftop solar installations enable industries to offset high energy costs, ensuring long-term savings while contributing to environmental goals. As industries face growing pressure to reduce their carbon footprint, investing in large-capacity solar systems offers a reliable, cost-effective solution. This trend is expected to accelerate as more industries transition to green energy, unlocking substantial market potential in the commercial and industrial sectors.
The growing adoption of thin-film solar panels is reshaping the solar market, driven by their lightweight design, flexibility, and superior performance in low-light conditions. Unlike traditional crystalline silicon panels, thin-film photovoltaic modules are easier to install on varied surfaces, including curved or shaded rooftops, making them ideal for residential and commercial applications in regions with less direct sunlight.
In 2024, First Solar, a leader in cadmium telluride (CdTe) thin-film technology, expanded its global presence by deploying thin-film panels in large-scale solar power plants in regions with lower sunlight intensity, including parts of the U.S. and Europe. That year, First Solar produced 15.5 GW of modules 9.6 GW from Series 6 and 5.9 GW from Series 7 and secured 4.4 GW in net bookings, contributing to a contracted backlog of 68.5 GW and an opportunity pipeline of 80.3 GW, primarily in North America. Their efficient, adaptable panels continue driving growth across the solar sector.
The residential sector continues to lead the global rooftop solar market, fueled by growing consumer demand for energy independence, lower electricity costs, and sustainable living. Declining installation expenses, coupled with government incentives, have made residential solar systems increasingly affordable and accessible. The availability of ample rooftop space, especially in suburban and rural homes, further supports widespread adoption.
In 2024, India is experiencing a significant increase in residential rooftop solar adoption, largely due to the Pradhan Mantri Surya Ghar Yojana (PMSGY). In just six months, the scheme garnered 13 million registrations and 1.8 million applications, leading to 385,000 installations and an addition of 1.8 GW of capacity. With a total budget of INR 75,021 crore, the initiative aims to install 30 GW of rooftop solar systems across 10 million households over three-years. This initiative highlights the sector's growth and demonstrates strong policy support for accelerating the deployment of residential solar energy on a global scale.
The rising demand for residential solar-plus-storage systems is significantly boosting rooftop PV installations across U.S. suburbs. Homeowners are increasingly turning to integrated solar and battery storage solutions to gain energy independence, lower electricity bills, and ensure backup power during outages. These systems enable the storage of excess solar energy for use during peak demand times or at night, enhancing energy reliability. Declining solar panel costs, advancements in battery technology, and federal tax incentives have made these systems more accessible and appealing.
In 2024, SunRun became the first solar-plus-storage company to surpass 1 million customers. Over half of its sales now come from integrated solar and battery systems, reflecting a clear shift in consumer preference toward energy resilience. This milestone underscores the growing momentum behind solar-plus-storage adoption and its role in accelerating the residential rooftop PV market across North America.
The European Union's ambitious decarbonization targets, along with the implementation of rooftop photovoltaic (PV) mandates for commercial buildings, are significantly enhancing the market penetration of rooftop solar energy. Under the Energy Performance of Buildings Directive (EPBD), which comes into effect in May 2024, the EU has established a Solar Rooftop Standard. This standard mandates solar installations on all new non-residential and public buildings starting in 2027, and requires existing non-residential buildings to install solar panels during major renovations by 2028.
This directive is projected to drive the installation of an additional 150 to 200 GW of rooftop solar capacity in the EU between 2026 and 2030. It aims to leverage the considerable potential of large rooftops on offices, commercial buildings, and parking lots. This strategic initiative seeks to utilize the previously estimated 560 GW of untapped rooftop potential identified by the EU Joint Research Centre, thereby accelerating the transition to renewable energy sources and reducing dependence on fossil fuels.
In the Asia-Pacific region, government-backed subsidies and feed-in tariff (FiT) programs are crucial in accelerating the adoption of rooftop solar photovoltaic (PV) systems, especially those with capacities below 10 kW. These incentives effectively reduce financial barriers, making solar installations more affordable and attractive for both residential homeowners and small businesses. As a result, more individuals and enterprises are empowered to pursue renewable energy solutions, contributing to a more sustainable future.
The rooftop solar photovoltaic market is highly competitive with major companies focusing on advanced technologies, strategic alliances, and geographic expansion. The players are providing integrated solutions that combine solar energy with storage and energy management systems, rather than just competing on price.
They are benefiting from decreasing solar component costs, government incentives, and rising consumer demand for sustainable energy. New entrants are also emerging in rapidly growing markets like Asia-Pacific and North America, driving innovation and improving solar system efficiency. Consequently, global adoption of rooftop solar PV systems is accelerating, marking a significant shift towards sustainable energy solutions.
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Report Attributes |
Details |
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Historical Data/Actuals |
2019 - 2024 |
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Forecast Period |
2025 - 2032 |
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Market Analysis |
Value: US$ Bn |
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Geographical Coverage |
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Segmental Coverage |
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Competitive Analysis |
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Report Highlights |
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Customization and Pricing |
Available upon request |
By Technology
By Connectivity
By Capacity
By End-user
By Region
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The global Rooftop Solar PV market is projected to be valued at 64.8 bn in 2025.
The Rooftop Solar PV market is driven by the rising residential adoption of on-grid rooftop solar systems is driven by favourable net metering policies and reduced electricity costs.
The Rooftop Solar PV market is poised to witness a CAGR of 15.6% from 2025 to 2032
Expansion into the industrial segment with above 1 MW capacity systems presents strong growth opportunities amid decarbonization efforts is the key market opportunity.
Major players in the Rooftop Solar PV market include 3M, A. O. Smith, Pentair, Panasonic, Unilever, and others.
