The U.S. residential solar photovoltaic (PV) market was valued at USD 7.45 billion in 2023 and is expected to grow to USD 17.68 billion by 2030, representing a compound annual growth rate (CAGR) of 14.4% from 2024 to 2030. Growing environmental concerns over rising carbon emissions from traditional fuel use in power generation and transportation have driven the country to adopt cleaner and more sustainable energy solutions. The increasing demand for renewable energy, supported by favorable government policies, incentives, and tax credits for installing solar PV systems, is set to fuel market expansion. Additionally, the availability of net metering programs for grid-connected solar systems and the option to combine solar PV with battery storage in off-grid setups have further stimulated growth in both residential and commercial sectors.

The California residential solar PV market is expected to experience significant growth during the forecast period, owing to strong federal initiatives, rising demand for green electricity from both public and private sectors, and attractive solar investment tax credits. According to the Solar Energy Industries Association, the U.S. solar sector attracted USD 33 billion in private investment in 2019 alone. California’s leadership position is largely due to its supportive policies, such as net metering, which encourage solar PV adoption.

Moreover, a range of incentives for residential users to install solar systems has bolstered market growth. The rapid depletion of fossil fuel reserves has heightened the need for renewable energy sources like solar power, which is one of the fastest-growing due to its ease of installation. Innovations such as floating solar panels, which offer several advantages over conventional systems, are also expected to drive industry growth.

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Key Market Trends & Insights

• The retrofit solar panels segment led the market with a 71.70% revenue share in 2023. This segment includes solar PV installations on existing residential properties undergoing renovations. Homeowners benefit from such installations through reduced electricity bills and increased property resale value.
• California dominated the market in 2023, accounting for 23.84% of total revenue. This dominance stems from numerous local investments and economic and environmental advantages tied to solar PV adoption. California is projected to maintain its leading position and exhibit the fastest growth rate from 2024 to 2030.

Market Size & Forecast

• 2023 Market Size: USD 7.45 Billion
• 2030 Projected Market Size: USD 17.68 Billion
• CAGR (2024–2030): 14.4%

Key Companies & Market Share Insights

The U.S. residential solar PV market is highly competitive, with major participants investing heavily in research and development to innovate continuously. Constant technological advancements and product innovations are key to maintaining a competitive edge in this sector. Some of the leading companies operating in the U.S. residential solar PV market include:

• Tesla
• SunPower Corp.
• Sunrun
• Trinity Solar Inc.
• Sungevity
• Momentum Solar
• SPI Energy Co. Ltd.
• Ace Solar
• Sunlux
• Titan Solar Power

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Conclusion

The U.S. residential solar PV market is on a robust growth path, driven by increasing environmental concerns, supportive government policies, and technological advancements that simplify solar installation and integration. With a projected CAGR of 14.4% from 2024 to 2030 and a market size expected to reach USD 17.68 billion by 2030, solar PV is becoming an essential part of residential energy strategies. California’s leadership and ongoing innovations like floating solar panels underscore the sector’s dynamic nature. Continued investment in R&D and policy support will be critical in sustaining growth and accelerating the transition toward renewable energy across the U.S. residential sector.