What will drive the growth of solar PV panels industry?

Growing demand for renewables-based clean electricity coupled with government policies, tax rebates, and incentives to install solar panels is expected to drive the growth of solar PV panels industry in the coming years. Asia Pacific held the largest market share of over 54.0% in 2023.

How will solar impact the energy industry?

The industry remains optimistic about the role of solar in achieving energy dominance and meeting rising electricity demand. State-level initiatives and corporate demand will gain more relevance and drive solar development, potentially mitigating the impact of federal mandates.

Is the residential solar market down?

The residential solar market is down, not out. Our analysis indicates that the market is likely to revert to more stable long-term growth over the next several years on the back of strong fundamentals. Almost certainly, surprises will pop up along the way; the industry is not called the solar coaster for nothing.

How has the residential solar market changed in 2024?

Declines in residential solar markets have been a hit to the industry—but its foundation is strong. Worldwide, 2024 was a difficult year for the residential solar market. After several years of 30 percent annual growth in installations, 2024 saw a decline: fewer panels were installed in many markets, and companies’ valuations declined.

Are solar companies expanding into low-income areas?

28% of companies say they have expanded into low-income areas as a result of the Inflation Reduction Act. Another 28% say they expect to in 2025. At the end of 2023, 54% of installers said they expected to sell more or less solar in 2024. But in this year’s survey, only 25% reported that demand had, in fact, increased.

Is the solar industry sustainable?

Even with the tremendous growth journey the industry has been on over the past decade (see sidebar, “The solar boom”), what we observed between 2020 and 2023 was simply not sustainable. A confluence of factors led the market worldwide to its new heights, with growth rates of 30 percent per year (Exhibit 1).