Rooftop Solar PV Market
                     Rooftop Solar PV Market Outlook: Growth Drivers, Segmentation, and Regional
Trends
According to a new report published by Allied Market Research, the  rooftop solar PV market
size was valued at $51.2 billion in 2022 and is projected to reach $89.8 billion by 2032, growing
at a CAGR of 5.8% from 2023 to 2032. The steady expansion of the market reflects rising global
demand  for  clean  energy,  declining  solar  panel  costs,  and  strong  policy  support  for
decentralized power generation.
Introduction
Rooftop solar photovoltaic (PV) systems generate electricity by converting sunlight into usable
power through solar panels installed on residential, commercial, and industrial rooftops. These
systems  help  reduce  dependence  on  fossil  fuels,  lower  electricity  bills,  and  cut  carbon
emissions. As per the Institute for Energy Economics & Financial Analysis, rooftop solar adoption
is increasing steadily due to its economic and environmental benefits.
The  rooftop solar PV market plays a critical role in the global energy transition by enabling
distributed generation and optimal utilization of unused rooftop spaces. With rapid urbanization
and growing electricity demand, rooftop solar systems are becoming an essential component of
sustainable energy infrastructure.
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Market Dynamics
The growth of the rooftop solar PV market is primarily driven by the increasing demand for
renewable  power  amid rapid industrialization and urbanization worldwide.  Rising  electricity
consumption across residential, commercial, and industrial sectors has compelled governments
and utilities to focus on decentralized and clean energy solutions.
A major factor accelerating market growth is the decline in solar panel prices coupled with the
expansion  of  manufacturing  facilities  across  the  globe.  Technological  advancements  and
economies of scale have significantly reduced installation and operational costs, making rooftop
solar systems more affordable for end users.
In  addition,  growing awareness among consumers  and policymakers  about  utilizing building
rooftops  for  solar  power  generation has  boosted  adoption.  Governments  across  multiple
regions  are  offering  subsidies,  tax  incentives,  net  metering  policies,  and  feed-in  tariffs  to
encourage rooftop solar installations. These initiatives have played a vital role in strengthening
the rooftop solar PV market outlook.
Concerns over greenhouse gas emissions and climate change further support market expansion.
Rooftop solar systems provide a clean and sustainable energy source, helping nations achieve
renewable energy targets and reduce their carbon footprint.
Segments Overview
The global rooftop solar PV market is segmented by  deployment, technology, grid type, end
use, and region.
By Deployment
Based  on  deployment,  the  market  is  categorized  into  pole-mounted and  terrace-mounted
systems.
In 2022, the pole-mounted segment held the largest market share, accounting for more than
two-thirds of total revenue. The dominance of this segment is attributed to the increasing use
of solar street lights, traffic systems, and emergency power equipment installed on poles.
However, the terrace-mounted segment is expected to witness the highest CAGR of 6.2% from
2023 to 2032. Government initiatives promoting rooftop solar installations on residential and
commercial buildings are driving demand for terrace-mounted systems.
By Technology
On the basis of technology, the rooftop solar PV market is divided into  crystalline silicon and
thin-film solar panels.
The crystalline silicon segment dominated the market in 2022, accounting for more than four-
fifths of  revenue.  Its  dominance  is  driven  by  cost-effectiveness,  high  efficiency,  and a  well-
established global supply chain developed over decades of commercialization.
Meanwhile, the thin-film segment is projected to grow at the fastest CAGR of 7.0% during the
forecast period.  Thin-film solar panels are increasingly used in commercial buildings as solar
windows  and  façade-integrated  solutions  due  to  their  flexibility,  lighter  weight,  and  lower
production costs.
By Grid Type
Based on grid type, the market is classified into grid-connected and off-grid systems.
The  grid-connected segment held the largest share in 2022, accounting for over four-fifths of
total  market  revenue.  Growing investments  by  governments  and corporations  in  renewable
power infrastructure and net-metering facilities have fueled demand for grid-connected rooftop
solar PV systems.
However, the off-grid segment is expected to register the highest CAGR of 6.2% from 2023 to
2032.  Rising  government incentives,  along with increasing  electrification needs in  rural  and
remote areas of developing countries, are driving off-grid rooftop solar installations.
By End Use
By  end  use,  the  rooftop  solar  PV  market  is  segmented  into  residential,  commercial,  and
industrial.
In 2022, the industrial segment accounted for the largest market share, representing more than
two-fifths  of  revenue.  Industrial  facilities  increasingly  deploy  rooftop  solar  systems  as
emergency backup power solutions to ensure uninterrupted operations during grid outages.
The commercial segment is projected to grow at the fastest CAGR of 6.3% during the forecast
period.  Rapid commercial  infrastructure development in countries such as India,  China,  and
Brazil, along with the construction sector’s shift toward sustainable energy solutions, is driving
market growth.
Regional Analysis
Regionally, the rooftop solar PV market is analyzed across North America, Europe, Asia-Pacific,
and LAMEA.
In 2022, Asia-Pacific held the dominant position, accounting for more than half of global market
revenue.  Rapid  industrial  growth,  rising  electricity  demand,  and  large-scale  infrastructure
investments have significantly increased the adoption of rooftop solar systems in the region.
Governments across Asia-Pacific are actively promoting renewable energy through favorable
policies, subsidies, and ambitious solar capacity targets. As a result, the region is expected to
maintain its leadership position and register the highest CAGR of 6.2% from 2023 to 2032.
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Competitive Analysis
Key players operating in the global rooftop solar PV market include JinkoSolar, JA Solar, Trina
Solar, LONGi Solar, Canadian Solar, First Solar, SunPower Corporation, Indosolar, Hanwha Q-
Cells, and E-Ton Solar.
These companies are focusing on capacity expansion, strategic partnerships, acquisitions, and
technological  innovation to  enhance  product  efficiency  and  reliability.  Declining  solar  panel
prices  and  growing  consumer  awareness  about  rooftop  solar  benefits  continue  to  create
favorable conditions for market competition and innovation.
Conclusion
The rooftop solar PV market is poised for steady growth over the coming decade, supported by
declining technology costs,  favorable government policies,  and rising demand for  clean and
decentralized energy solutions. With Asia-Pacific leading global adoption and commercial and
terrace-mounted systems gaining momentum, rooftop solar PV is set to play a vital role in the
future renewable energy landscape.