A home solar system includes photovoltaic panels, battery packs, charge controllers, and an inverter installed in homes to harness solar energy and power household appliances.Photovoltaic panels convert sunlight into electricity, which can be stored in rechargeable battery packs or fed directly to the home’s electrical circuits. The growing consumer preferences towards sustainable energy sources in various regions has fueled the adoption of home solar systems. Home solar systems offer homeowners an environment-friendly renewable alternative to power household necessities and reduce utility bills.
The global home solar system market is estimated to be valued at US$ 77.42 billion in 2024 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Growing demand for reliable clean energy sources: The continuously rising electricity consumption and growing concerns regarding carbon emissions has boosted the demand for environment-friendly and stable energy sources. Home solar systems offer a decentralized renewable alternative and help homeowners minimize their dependence on electricity grids. Solar energy is a reliable source that is abundantly available throughout the day and has huge potential to meet the energy needs without environmental damages. The reliability of supply and zero emissions attributes of home solar systems have popularized the adoption among consumers looking for clean energy sources.
Policy support for adoption of solar energy: Favorable government policies including subsidies, tax benefits, and feed-in-tariffs have encouraged homeowners to switch to solar power. Many governments provide upfront cashback or subsidize 30-40% of the total solar project cost to drive the adoption. Additionally, net metering policies enable homeowners to sell surplus electricity generated from their solar system to the grid. Such initiatives reduce the installation costs and payback period, making home solar systems an economically viable green alternative.
Segment Analysis
The home solar system market can be segmented by product into solar panels, solar batteries, mounting systems, charge regulators, and inverters. The solar panels segment dominates the market as solar panels are the core component which generates electricity from sunlight. The ongoing technological advancements such as higher efficiency of solar panels and declining prices have boosted the adoption of solar panels across residential sector.
PEST Analysis
Political: Favorable government policies and incentives such as tax credits and subsidies on installation of solar systems are driving the market growth. Many countries have defined renewable purchase obligations which mandate use of clean energy.
Economic: Declining prices of solar components coupled with reliable return on investment within 6-8 years from savings on electricity bills are attracting more homeowners to invest in solar systems.
Social: Rising environmental awareness among public has increased preference for renewable sources of energy. Solar energy is also considered reliable and independent sources of electricity during outages.
Technological: Continuous innovations such as higher efficiency of solar panels, improved battery storage, and networking technologies are making solar systems more viable and affordable options for households.
Key Takeaways
The global home solar system market share is expected to witness high growth. The global home solar system market is estimated to be valued at US$ 77.42 billion in 2024 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 to 2031.
Regional analysis comprises the market is dominated by Asia Pacific region mainly due to presence of leading markets like China, Japan and India experiencing highest solar installations driven by supportive government policies and attractive feed-in-tariffs. North America is another major regional market driven by tax credits in the US while European Union is also adopting solar rooftop systems at significant rate.
Key players
operating in the home solar system market are Amego Electric Vehicles Inc., Ampere Vehicles Pvt. Ltd, BMW Motorrad, ECCITY Motocycles, GenZe, Gogoro Inc., GOVECS GmbH, Hero Eco (Hero Electric), Honda Motor Co. Ltd., Jiangsu Xinri E-Vehicle Co., Ltd., Kumpan Electric, Piaggio & C. SpA, Sanyang Motor Co. Ltd., Silence Urban Ecomobility, Terra Motors Corp., TORROT ELECTRIC EUROPA S.A, TVS Motor Company, Vmoto Limited, and Yadea Group Holdings Ltd.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it