U.S. Solar Panel Market is Projected to Grow .90 Billion By 2025

Posted by Marsh William on October 31st, 2018

31 October 2018, The U.S. solar panel market size is expected to reach USD 22.90 billion by 2025 as a result of increasing demand from consumers owing to decreased installation cost of solar panel systems. Increasing environmental awareness among customers is driving the adoption of cost-efficient renewable forms of energy over conventional energy sources. The year 2016 witnessed a significant growth in number of installations of solar panels in U.S. For instance, more than 11.8 GW of solar panels were installed in U.S. in 2016.

The residential segment witnessed sluggish growth in terms of installation of solar energy owing to discrepancies in sales strategies such as high installation and maintenance costs. However, rising development activities in Texas, Utah, Florida, and South California are expected to drive the segment over the forecast period, thereby generating need for installation of renewable solar panel systems.

The concept of community solar panel systems is gaining popularity in U.S. This has increased off-site and rooftop corporate procurement by companies such as Amazon, Apple, and Target. U.S. is the dominant market for photovoltaic (PV) tracker systems, with NEXTracker and Array Technologies being leading players in the region. In 2016, both companies collectively shipped more than 5 GW DC of PV tracker components.

California holds the largest market share in the U.S. solar panel market. However, there is continuous expansion in markets like Florida, Texas, Utah, and Minnesota. Falling prices are attracting new entrants in the solar industry. These players are expected to acquire a larger market share in future. Furthermore, increasing environmental awareness and innovative technologies to suit rugged terrain and weather are luring customers toward solar energy. This factor is expected to drive the U.S. solar panel market over the forecast period.

Moreover, increasing adoption by educational institutes is expected to drive the industry in future. For instance, more than 5,500 K-12 schools in U.S. have installed solar energy systems until now. Rising efforts from organizations such as the Solar Energy Industries Association (SEIA) are aiding the regional solar sector. SEIA is a trade association that supports free and fair trade of solar equipment. Government initiatives such as solar investment tax credit has resulted in increased sales of solar panel systems over the past decade. Government reforms are expected to drive the U.S. solar panel industry in the forthcoming years. For instance, in 2018, the government imposed a 30% tax on solar panels and cells imported into U.S. This policy is framed to encourage local manufacturing and to boost the regional solar panel market.

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