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.

About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.