Solar Panel Market in United States

Solar Panel in United States Trends and Forecast

The future of the solar panel market in the United States looks promising, with opportunities in the commercial, residential, and industrial applications. The global solar panel market is expected to reach an estimated $248.1 billion by 2031, with a CAGR of 7.6% from 2025 to 2031. The solar panel market in the United States is also forecasted to witness strong growth over the forecast period. The major drivers for this market are growing awareness of the benefits of solar energy, increasing demand for renewable energy, and the need to reduce carbon emissions.

• Lucintel forecasts that, within the application category, photovoltaic is expected to witness higher growth over the forecast period due to its affordability, easy installation, and efficiency at converting sunlight into electricity.
• Within the end use category, the commercial sector is expected to witness the highest growth over the forecast period due to growing preference for solar energy in this sector to reduce electricity expenses.

Emerging Trends in the Solar Panel Market in United States

The United States solar panel market is changing rapidly, driven by technological advancements, policy support, and increasing demand for clean energy options. These trends reflect a continued shift in the energy sector, where solar power is becoming more available, efficient, and integrated into daily life. As the nation moves towards renewable energy, these trends are transforming the market and driving widespread use. Below are five key trends influencing the U.S. solar panel market.

• Solar + Storage System Adoption on the Rise: One of the most significant trends is the increased adoption of energy storage systems alongside solar panels. Solar-plus-storage systems allow users to store excess energy generated during the day for use at night or during power outages. This trend is gaining momentum as battery technology improves, making storage products more affordable and efficient. Increased energy reliability, energy independence, and the mitigation of grid instability through solar storage systems are driving higher consumer interest and investment in solar power.
• Corporate and Utility-Scale Solar Growth: Another growing trend is increased investment in utility-scale solar installations and corporate adoption of solar energy. Major utilities and large businesses are investing heavily in renewable energy, including solar, as part of their sustainability initiatives. Not only is Google using solar power, but it is also investing in solar farms to meet its renewable energy demands. This trend is accelerating corporate transitions to renewable energy and supporting the growth of large solar projects, which is contributing to the country’s overall decarbonization efforts.
• Declining Costs of Solar Panels and Increased Efficiency: The decreasing price of solar panels and the increase in their efficiency are major drivers of the solar industry. The price of solar energy has decreased dramatically over the last decade due to advancements in manufacturing processes, economies of scale, and supportive policies. Additionally, solar panels are becoming more efficient, allowing users to generate more electricity with fewer panels. This trend is reducing the cost of solar energy, making it more affordable and accessible for residential, commercial, and industrial applications, thereby driving overall market growth and adoption.
• Expansion of Policy Support and Incentives: U.S. government incentives and policies continue to dominate the development of the solar market. Programs like the federal Investment Tax Credit (ITC) and state-level incentives have significantly reduced the costs of solar installations for both individuals and businesses. Recently, there have been discussions about expanding incentives, particularly to encourage low-income communities and underrepresented areas to invest in solar power. These incentives are making solar energy more affordable and helping to address renewable energy goals across the country.
• Community Solar Projects and Decentralized Energy: Community solar projects and decentralized energy systems are major trends reshaping the solar landscape. Community solar allows people who may not have suitable roofs for solar panels to access solar energy by investing in shared solar arrays. These initiatives are becoming more popular as they make solar power accessible to a broader group of people, allowing more individuals to participate in the renewable energy shift. With more decentralized energy grids, community solar programs are enabling higher levels of participation in clean energy technologies.

These trends are reshaping the U.S. solar panel market. The integration of energy storage systems, increased corporate and utility investment, falling solar panel prices, growing policy support, and the rise of decentralized energy systems are driving the solar power sector to a position of sustained growth. As these trends continue to unfold, they will fuel further adoption of solar power, helping the U.S. achieve its renewable energy goals and reduce carbon emissions.

Recent Developments in the Solar Panel Market in United States

The United States solar panel market has undergone dramatic changes in recent years, driven by technological advancements, evolving policies, and increasing demand for renewable energy. These developments are revolutionizing the energy sector, making solar power more affordable and scalable. With a focus on sustainability and energy independence, these changes are influencing the use and expansion of solar energy across residential, commercial, and utility markets. Here are five major developments in the U.S. solar panel market.

• Extension of the Solar Investment Tax Credit (ITC): The U.S. federal government’s move to extend and expand the Investment Tax Credit (ITC) has greatly influenced the solar market. First introduced to encourage the use of renewable energy, the ITC provides tax credits for residential and commercial solar installations. The expansion of the ITC through 2023 and beyond has further reduced the cost of solar power for homeowners and businesses, fueling growth in solar panel installations across the country. This expansion is expected to continue supporting the development of solar energy and accelerate the country’s transition to a renewable energy future.
• Technological Improvements in Solar Efficiency: Technological advancements in solar panel efficiency have led to greater energy output per panel, even in areas with less sunlight. New materials, such as bifacial solar panels and advanced silicon-based technologies, are pushing the boundaries of solar energy production. These innovations allow solar systems to generate more power using fewer panels, reducing installation costs and boosting return on investment. The improved efficiency of solar panels is making solar energy a more viable option for both residential and business consumers.
• Solar Panel Recycling Programs: As solar energy adoption increases, the industry is also working on improving panel disposal and recycling. U.S. companies have started implementing programs to recycle outdated solar panels, minimizing the environmental impact of waste. The U.S. solar industry is expected to face a surge in recycling demand as more installations reach the end of their life. Efforts focused on sustainable recycling processes reduce waste and promote a circular economy in the solar sector, ensuring long-term environmental sustainability.
• Increase in Solar Power Purchase Agreements (PPAs): Power Purchase Agreements (PPAs) are gaining traction in the U.S. solar market as a way for businesses, schools, and institutions to purchase solar energy at an agreed price without having to invest in solar panel installations themselves. This model has helped non-profits and smaller enterprises access the benefits of solar energy, even without significant capital investment. The rise of PPAs is broadening access to solar power, driving clean energy adoption in commercial sectors, and making solar more accessible for a wider range of consumers.
• State-Level Solar Mandates: Several U.S. states have enacted mandates requiring utilities and new buildings to include solar energy in their energy mix. States like California and Hawaii have passed legislation requiring new homes and commercial buildings to be equipped with solar panels. These mandates are boosting solar power use, helping to meet renewable energy goals, and reducing carbon emissions. State-level solar mandates are serving as models for other regions, promoting further expansion of solar energy nationwide.

Recent developments in the U.S. solar panel market indicate a shift toward cheaper, more efficient, and more widely adopted solar energy solutions. From policy incentives such as the ITC to technological breakthroughs and new business models like PPAs, the solar market is becoming more inclusive and scalable. As the industry continues to grow with a focus on innovation and sustainability, these developments will drive tremendous growth and be crucial in helping the U.S. achieve its renewable energy goals.

Strategic Growth Opportunities for Solar Panel Market in United States

The U.S. solar panel market is experiencing significant growth, driven by the demand for clean energy and government support. As technology improves, more corporate investment is flowing in, and consumers are increasingly interested in sustainability. Solar energy is finding more space in the nation’s energy profile. Below are five strategic growth opportunities in various applications within the U.S. solar panel market, which describe how each segment is shaping the industry’s future.

• Residential Solar Systems: Residential solar systems are growing rapidly due to rising energy costs and the need for energy independence. Homeowners are increasingly embracing solar panels because installation costs have dropped, the government offers incentives, and they can save on energy bills in the long run. The addition of solar energy storage systems enhances the appeal, allowing homeowners to capture excess energy for later use, especially during high-demand periods or power outages. With more people seeking sustainable energy alternatives, the residential market is expected to continue driving U.S. solar growth.
• Commercial Solar Solutions: The business sector presents substantial expansion opportunities for solar panel use, as companies aim to reduce costs and minimize their carbon footprint. Higher energy prices and corporate sustainability strategies are encouraging more firms to invest in solar energy. Many large companies are using solar power to meet renewable energy targets and improve their environmental credentials. Commercial solar installations are also supported by policies like the Investment Tax Credit (ITC), making solar more affordable. As businesses increasingly focus on sustainability, the commercial solar sector will continue growing rapidly, contributing to the nation’s overall energy transition.
• Utility-Scale Solar Farms: Utility-scale solar farms represent a crucial opportunity for widespread solar deployment. With vast areas of vacant land in rural regions and government incentives to promote renewable energy, utility-scale solar farms are expanding rapidly across the U.S. These large solar farms deliver significant amounts of clean energy to the national power grid, furthering the country’s growing interest in green energy. The ongoing development of utility-scale solar farms will play a central role in the U.S. achieving its renewable energy goals and reducing its reliance on fossil fuels.
• Solar + Storage Systems: Combining solar energy with energy storage systems is an expanding market opportunity, as it enables consumers and businesses to store excess energy generated during the day for use at night or during low-sun periods. Energy storage improves the reliability of solar power by addressing challenges like grid instability and power outages. Advances in battery technology are lowering the cost of storage systems and increasing their efficiency, promoting the uptake of solar-plus-storage systems. Solar-plus-storage will become a core component of residential, commercial, and utility-scale solar installations, further driving market expansion.
• Community Solar Projects: Community solar projects provide an innovative solution to expand solar access to those who cannot install solar panels on their property, such as renters or those with unsuitable roofs. By investing in shared solar arrays, community solar enables individuals to benefit from solar energy without individual installations. This model is gaining popularity as it democratizes access to renewable energy, allowing more people to participate in the clean energy transition. As community solar programs gain traction, they will help expand solar energy adoption across various communities and regions.

These strategic growth opportunities in residential, commercial, utility-scale, solar + storage, and community solar applications are transforming the U.S. solar panel market. As these sectors expand, the country moves closer to meeting its renewable energy targets. The increasing use of solar technology across various applications, driven by cost reductions, technological advancements, and supportive policies, will continue to accelerate the U.S. energy transformation and lead the way to a sustainable energy future.

Solar Panel Market in United States Driver and Challenges

The U.S. solar panel market is influenced by various technological, economic, and policy factors. Technological advancements, such as more efficient solar panels and energy storage systems, are driving market growth. Economic factors, including declining solar technology costs and rising energy prices, make solar power more attractive. Additionally, government incentives and policies are central to accelerating solar adoption. However, challenges like grid integration, policy uncertainty, and land availability may hinder market expansion. Below, we discuss the key drivers and challenges facing the U.S. solar panel market.

The factors responsible for driving the solar panel market in the United States include:
• Technological Advances in Solar Panel Efficiency: Recent breakthroughs in solar panel technology, including improved materials and manufacturing processes, have increased both the efficiency and affordability of solar panels. New technologies, such as bifacial panels and high-efficiency cells, allow solar panels to generate more power using less material, significantly reducing the overall cost of solar installations. These advancements make solar energy more appealing to both residential and commercial consumers, driving rapid growth in the U.S. market. As efficiency continues to improve, the cost of solar power will decrease, further promoting its adoption across industries.
• Government Incentives and Policy Support: Government policies, including tax incentives and subsidies, are key drivers of growth in the U.S. solar market. Programs like the Investment Tax Credit (ITC) and various state-level incentives have made solar installations more affordable for homeowners and businesses. Federal and state policies continue to support renewable energy, further boosting solar adoption. Additionally, the growing focus on reducing carbon emissions and achieving renewable energy targets has led to the development of supportive policies that will continue to drive solar adoption. The expansion of such incentives will further promote market growth in the coming years.
• Increasing Cost of Energy: The rising cost of electricity is driving demand for renewable energy sources like solar. As fuel costs for traditional energy sources continue to climb, both industrial and residential consumers are increasingly considering solar energy as a more cost-effective long-term solution. Solar power enables consumers to generate their electricity, reducing dependence on the grid and helping to lower energy costs. The financial benefits of solar energy, particularly in regions with high electricity rates, are a major driver of market growth. This trend is expected to continue as energy prices remain volatile.
• Corporate Sustainability Objectives: Many large companies in the U.S. are adopting solar power to meet their sustainability goals. With increasing pressure to reduce carbon footprints and operate in an environmentally responsible manner, corporations are investing in solar energy as part of their sustainability strategies. Companies like Google and Amazon have already made significant investments in renewable energy, including solar, to meet their renewable energy targets. The growing focus on corporate social responsibility is likely to drive greater adoption of solar energy within the corporate sector.
• Greater Public Awareness and Environmental Issues: Increasing public awareness of climate change and environmental sustainability is encouraging individuals and businesses to adopt cleaner energy alternatives. Growing concerns over fossil fuel use and the environmental impact of traditional energy sources have prompted many to seek alternative energy solutions like solar. As more individuals strive to reduce their carbon footprints, the demand for solar energy will continue to rise. Public support for clean energy will further drive the growth of the solar market in the U.S.

Challenges in the solar panel market in the United States are:
• Issues with Grid Integration and Storage: A major challenge for the U.S. solar panel market is integrating solar energy into the existing grid infrastructure. Solar power generation is intermittent and weather-dependent, which can lead to problems with grid stability. Energy storage solutions, like batteries, are important for mitigating these issues by allowing excess energy to be stored for later use. However, current storage technologies are expensive and not yet fully equipped to address grid integration challenges. The development of more cost-effective and efficient storage systems will be crucial to overcoming this obstacle.
• Policy and Regulatory Uncertainty: Despite the strong preference for renewable energy, policy and regulatory uncertainty continue to pose challenges. Frequent changes in government policies, such as fluctuations in incentive frameworks or trade tariffs, can create market confusion and discourage long-term investment. For example, changes to the Investment Tax Credit (ITC) and other subsidies can affect the financial viability of solar projects. Policy stability and predictability will play a crucial role in ensuring continued growth in the U.S. solar panel market.
• Land Availability for Large-Scale Solar Projects: Land availability is a key concern for utility-scale solar projects in the U.S. While there is ample space in rural areas for large solar farms, zoning laws, land use conflicts, and environmental concerns can delay project development. Acquiring permits for large installations is also time-consuming and costly. As demand for solar energy grows, solutions to land availability challenges, such as floating solar farms or using rooftops for solar panels, will be essential to achieving the U.S. renewable energy goals.

The drivers and challenges impacting the U.S. solar panel market are shaping its growth and development. Technological advancements, government support, and rising energy prices are fueling solar adoption, while challenges such as policy uncertainty, land availability, and grid integration need to be addressed for the market to reach its full potential. Overcoming these challenges and capitalizing on the opportunities presented by the drivers will be essential to sustaining the success of the solar market in the United States.

List of Solar Panel Market in United States Companies

Companies in the market compete based on the product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leveraging integration opportunities across the value chain. Through these strategies, solar panel companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the solar panel companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10

Solar Panel Market in United States by Segment

The study includes a forecast for the solar panel market in United States by type, application, and end use.

Solar Panel Market in United States by Type [Analysis by Value from 2019 to 2031]:

• Crystal Silicon
• Monocrystalline Silicon
• Polycrystalline Silicon
• Others

Solar Panel Market in United States by Application [Analysis by Value from 2019 to 2031]:

• Photovoltaic
• Concentrated Solar Power

Solar Panel Market in United States by End Use [Analysis by Value from 2019 to 2031]:

• Commercial
• Residential
• Industrial

Features of the Solar Panel Market in United States

Market Size Estimates: Solar panel in United States market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Solar panel in United States market size by type, application, and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different types, applications, and end uses for the solar panel in United States.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the solar panel in United States.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

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FAQ

Q.1 What are the major drivers influencing the growth of the solar panel market in United States?
Answer: The major drivers for this market are rising concern towards environmental pollution, significant demand for renewable energy, and escalating demand for solar panels from residential and commercial projects.
Q2. What are the major segments for solar panel market in United States?
Answer: The future of the solar panel market in United States looks promising with opportunities in the commercial, residential, and industrial applications.
Q3. Which solar panel market segment in United States will be the largest in future?
Answer: Lucintel forecasts that photovoltaic is expected to witness higher growth over the forecast period due to its affordability, easy installation, and efficient at converting sunlight into electricity.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.

This report answers following 10 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the solar panel market in United States by type (crystal silicon, monocrystalline silicon, polycrystalline silicon, and others), application (photovoltaic and concentrated solar power), and end use (commercial, residential, and industrial)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Solar Panel Market in United States, Solar Panel Market in United States Size, Solar Panel Market in United States Growth, Solar Panel Market in United States Analysis, Solar Panel Market in United States Report, Solar Panel Market in United States Share, Solar Panel Market in United States Trends, Solar Panel Market in United States Forecast, Solar Panel Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.