How Big is The Residential Solar Market?

The residential solar market stands at $20.8bn, according to revenue reports from the solar industry. If you look at the 2021 solar market report ($11.75), the solar industry has seen significant growth. However, the market is far from being exhausted, and if aggressive enough, solar companies still have room to generate solar leads.

Generally, the solar market has gradually grown over the past five years by about 20.7%. This trend is expected to continue in 2023, with experts approximating a growth rate of 20.5%. This forecast shows that most US residents are yet to go solar. As a result, the solar industry has plenty of room for established and new investors looking to venture into the solar business.

Solar industry expectations in the next five years

The solar market is expected to grow gradually in the next five years. The presence of favorable policies, regulations, and various incentives for residential users to switch to solar power is one of the major reasons for the predicted growth of the solar market.

The increasing reduction of fossil reserve fuels has also increased the need for the utilization of renewable energy. And since solar is one of the most available renewable energy sources, most residents are expected to switch to solar power in the next five years. For this reason, anyone venturing into the solar market will find solar lead generation easier than when it first started.

The solar market has snowballed, considering the overall economic growth of the US. According to the US Energy Administration (UEA), the US solar power market will see an additional 29.1 GW of new utility-scale PV and about 9.4 GW of storage in 2023. Assuming the planned capacity goes online as anticipated, the US solar market will have the newest utility-scale PV capacity added in a year.

Compared to other US industries, the solar market can be ranked among the best performers in the past five years. In addition to providing residential alternative energy, the solar industry has created thousands of jobs, thus promoting economic growth.

Solar industry performance compared to the utility sector in the US

The market size of the US solar power industry increased faster than the utility sector overall. In addition to being an affordable power source, it is becoming more accessible, thanks to the increasing number of solar power investors. As a result, solar power is increasingly becoming the most preferred among US residents.

Factors such as environmental concerns, availability of incentives, the reduction of taxes, and the need to replace fossil energy sources have contributed to the solar industry’s rapid growth. Also, the prolonged solar panel lifespan and very low growth risk score positively impact the solar market.

The biggest growth opportunity for the solar industry is the reduced taxes and the available incentives that encourage homeowners to go solar. The tax deduction allows solar energy to compete with other energy sources such as electricity, natural gas, and coal on the price level.