| Study Period | 2019 - 2032 |
| 2024 Market Size | USD 30.9 Billion |
| 2025 Market Size | USD 34.5 Billion |
| 2032 Forecast | USD 78.4 Billion |
| Growth Rate (CAGR) | 12.5% |
| Largest Region | West |
| Fastest Growing Region | South |
| Nature of the Market | Fragmented |
| Largest Application Category | Utility-Scale |
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The U.S. solar panel market revenue was USD 30.9 billion in 2024, and it is expected to witness a CAGR of 12.5% from 2025 to 2032, reaching USD 78.4 billion in 2032. This market growth can be attributed to the rising focus of the country's government on reducing carbon footprints.
To reduce their carbon footprints, most industries are shifting toward the adoption of cleaner energy solutions, such as solar power HVAC systems, further driving the market growth.
Increased government incentives for integrating renewable energy systems, such as the solar investment tax credit (ITC), further drive the market's growth. Additionally, the integration of smart technologies such as smart thermostats and sensors improves energy efficiency and system responsiveness.
Furthermore, the adoption of hybrid systems that can easily switch between solar energy and traditional power grid systems drives the growth of the market. In addition, rising green building certifications, such as the LEED certification, further raise the integration of renewable energy systems.
The integration of renewable energy systems in various industries is increasing. Renewable energy systems integrated with energy storage systems provide a reliable power supply. Solar panels can generate energy during the day, while the storage solutions batteries further ensure power availability during the non-sunlight hours.
Additionally, in the United States, there are several initiatives such as the Clean Energy Standards and the extension of the Federal tax for solar installations.
Furthermore, the demand for renewable energy systems among companies and consumers to meet renewable energy goals through initiatives like the RE100 is rising.
The rising environmental and sustainability goals are driving the growth of the market with the increased adoption of renewable energy systems such as solar panels for electricity generation.
Consumers are now becoming more aware of the negative impacts of fossil fuels on the earth due to which there has seen a shift toward sustainable and renewable alternatives like solar energy to reduce carbon emissions.
Additionally, unlike fossil fuels solar power does not generate greenhouse gases such as carbon dioxide and methane further helping consumers to not rely on coal, oil, and natural gases.
A large number of tech giants in the United States such as Google, Apple, and Microsoft are shifting toward 100% renewable energy sources to run their operations. Furthermore, with the rising number of solar projects in the United States there is an increased demand for solar panels.
In January 2025, Adapture Renewables Inc. completed its 67 MW Signal Ranch project in Hunt Country, Texas, which included more than 130,000 solar modules and is expected to deliver approximately 120 GWh of electricity annually.
The high initial cost of the installation of solar panels makes it very difficult for most consumers to adopt these renewable technologies, challenging the market to grow. Moreover, additional requirements such as battery storage maintenance and inverter replacement may raise the total long-term cost, which may further hamper the market growth.
Monocrystalline solar panels held the largest market share of around 90% in 2024. The dominance of the category is due to the longevity and efficiency of the monocrystalline solar panels. Additionally, these types of solar panels are made up of a single, continuous crystal structure, which allows the free flow of electrons that helps in providing a higher efficiency rate.
Whereas, the thin-film solar panel category will grow at the highest CAGR during the forecast period. This growth can be due to the lightweight and flexibility of the material, which makes it easy to integrate into surfaces such as windows and roofs.
Based on technology type, the market has the following categories:
Utility-scale is the largest category, with a market share of around 70% in 2024. This is attributed to the needs of the utility sector for a large amount of electricity generation. The integration of renewable energy systems such as solar panels helps reduce the per unit cost of electricity generation.
The residential sector will grow at the highest CAGR during the forecast period. This growth of the sector can be attributed to the rising residential infrastructure development in the United States, which is demanding renewable energy systems for power generation.
Based on application, the market has the following categories:
Based on installation, the ground-mounted installation held the largest market share of around 65% in 2024. The ground-mounted installations are largely used in large-scale energy generation for grid distribution in the U.S. Additionally, due to the rising energy costs, households and businesses are adopting rooftop solar to reduce electricity bills.
Whereas, the rooftop installation will grow at the highest CAGR during the forecast period. This is due to the rise in construction activities in the residential, commercial, and industrial sectors, which is driving the demand for renewable energy systems for energy generation with lower costs.
The rooftop installation is the most efficient choice for installation on residential rooftops due to its lightweight materials such as thin-film solar panels.
Based on installation, the market has the following categories:
Based on end user, the private sector held a larger market share of 75% in 2024. This is due to the presence of a wide range of end users such as commercial businesses, industrial facilities, retail outlets, and many other private sectors, which are driving the demand for solar panels.
The public sector will grow at a higher CAGR during the forecast period. This growth of the category can be attributed to the increasing government mandates and sustainability concerns, which are driving the demand for renewable energy systems.
The government funding that is making solar adoption more accessible such as the Energy Efficiency and Conservation Block Grant (EECBG), helps local governments with the installation of solar panels.
Based on end user, the market has the following categories:
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The western region is the largest regional market, with a share of 40% in 2024. The region comprises states such as California, Arizona, and Nevada, which have the highest potential for solar energy. California alone holds half of the country’s total installed solar capacity, which includes the largest solar farms.
The southern region in the United States will grow at the highest CAGR during the forecast period. Florida is also known as the Sunshine State, which is implementing policies such as Net Metering and solar tax incentives, further driving the demand for solar panels in the region.
The market has been categorized into the following regions:
p>The nature of the U.S. solar panel market is fragmented due to the presence of a large number of players offering solar panels in the country. The market comprises a wide variety of installers from small regional installers to large national firms such as Sunrun, Vivint Solar, First Solar, and SunPower.
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