On-Grid Solar PV Market by System Type (Solar Panels (Photovoltaic Modules), Inverters, Mounting Structures), Installation Type (Residential, Commercial, Industrial), End-User (Utilities, Businesses, Residential Consumers), Grid Type (Single-Phase Grid, Three-Phase Grid) – Global Insights & Forecast (2023 – 2030)

As per Intent Market Research, the On-Grid Solar PV Market was valued at USD 117.1 Billion in 2024-e and will surpass USD 292.4 Billion by 2030; growing at a CAGR of 16.5% during 2025-2030.

The on-grid solar photovoltaic (PV) market has seen significant growth due to the increasing demand for renewable energy solutions, driven by both environmental concerns and the desire for energy independence. On-grid solar PV systems are connected to the electricity grid, allowing excess power generated by solar panels to be fed back into the grid, providing a sustainable energy solution for residential, commercial, and industrial users. This market is characterized by a wide variety of system components, including photovoltaic modules (solar panels), inverters, and mounting structures, each playing a critical role in the efficient generation, conversion, and storage of solar energy.

As governments worldwide introduce supportive policies and incentives to reduce carbon footprints, the adoption of on-grid solar PV systems continues to rise. The shift toward cleaner energy, coupled with advancements in solar technologies and a growing awareness of the long-term cost savings of solar installations, has made solar energy an increasingly attractive option. The market is experiencing a surge across various sectors, including residential, commercial, and industrial installations, with utilities leading the charge in large-scale deployments. On-grid solar PV systems are now seen as a key component in the transition to sustainable energy for both individual consumers and businesses.

Solar Panels (Photovoltaic Modules) are Largest System Type Owing to Dominance in Power Generation

Among the different system types, solar panels (photovoltaic modules) represent the largest segment in the on-grid solar PV market, as they are the primary technology for capturing and converting sunlight into electrical energy. Solar panels are composed of multiple photovoltaic cells that generate direct current (DC) electricity when exposed to sunlight. These panels are a crucial component of any solar PV system, and their efficiency and cost have steadily improved over the years, driving their widespread adoption in both residential and commercial sectors.

The growth of the photovoltaic module segment is primarily driven by the falling cost of solar panels, along with significant improvements in panel efficiency. As the cost of installation decreases, more homeowners and businesses are opting to install solar systems. Additionally, advances in solar panel technology, including the development of bifacial panels that capture sunlight on both sides, have made solar energy an increasingly viable and cost-effective option. The large-scale adoption of solar panels continues to be a key factor in the expansion of the on-grid solar PV market.

Residential Installations are Fastest Growing Installation Type Due to Rising Consumer Awareness

Residential installations of on-grid solar PV systems are the fastest-growing installation type, largely driven by increasing consumer awareness of renewable energy and the long-term cost savings associated with solar power. Homeowners are increasingly looking for ways to reduce energy bills, lower their carbon footprints, and achieve energy independence, all of which are made possible by the installation of solar PV systems. On-grid solar systems, which allow homeowners to draw power from the grid during periods of low solar generation and feed excess energy back into the grid, are particularly attractive for residential applications.

Government incentives, tax credits, and rebates for residential solar installations have further accelerated growth in this segment. Additionally, the availability of affordable financing options and the decreasing cost of solar panels and installation services have made solar energy accessible to a broader demographic of residential consumers. As energy prices continue to rise, residential solar installations are expected to continue their rapid growth, positioning them as a critical driver of the overall on-grid solar PV market.

Utilities are Largest End-User Due to Large-Scale Solar Projects

Utilities are the largest end-user segment in the on-grid solar PV market, primarily due to their role in large-scale solar power generation projects. These projects involve the installation of vast arrays of solar panels and are often connected to the grid, providing power to entire regions or cities. Utilities are increasingly turning to solar energy as part of their efforts to transition to cleaner and more sustainable sources of energy, meeting regulatory requirements and reducing reliance on fossil fuels.

Large-scale solar projects offer utilities a cost-effective and renewable way to generate electricity, and many utilities are investing heavily in on-grid solar systems to complement traditional power generation methods. Additionally, utilities benefit from the ability to manage the energy produced by solar power plants efficiently, using the grid to balance supply and demand. As renewable energy becomes more integrated into the energy mix, utilities will continue to drive the demand for on-grid solar PV systems.

Three-Phase Grid is Largest Grid Type Due to Industrial and Large-Scale Applications

Among the grid types, the three-phase grid is the largest, especially in industrial and large-scale applications. A three-phase grid is ideal for providing a stable and consistent supply of power to large-scale installations, such as those used in commercial, industrial, and utility-scale solar PV projects. This type of grid is capable of handling higher energy loads and ensuring a more reliable power supply, making it the preferred option for businesses and large consumers of electricity.

The growing demand for large-scale solar projects and industrial applications is expected to continue driving the dominance of the three-phase grid in the on-grid solar PV market. These grids offer several advantages, including greater efficiency, better power quality, and the ability to handle high loads, which are critical for commercial and industrial users looking to maximize the potential of their solar PV systems.

Asia Pacific is Fastest Growing Region Due to Rising Demand for Solar Energy

Asia Pacific is the fastest-growing region in the on-grid solar PV market, driven by a combination of supportive government policies, rapidly growing economies, and increasing energy demand. Countries such as China, India, Japan, and Australia are investing heavily in solar energy as part of their efforts to reduce carbon emissions and transition to renewable sources of energy. In particular, China is a global leader in both the manufacturing of solar panels and the deployment of large-scale solar power plants.

The region's growing focus on sustainability and energy security, coupled with significant investments in solar infrastructure, is expected to continue driving the adoption of on-grid solar PV systems. Additionally, the increasing number of residential and commercial installations in countries like India and Japan is further contributing to the growth of the market in Asia Pacific. As renewable energy becomes a critical part of the region's energy transition, Asia Pacific is set to remain the fastest-growing market for on-grid solar PV systems.

Leading Companies and Competitive Landscape

The on-grid solar PV market is highly competitive, with several key players driving technological innovation and market growth. Leading companies such as First Solar, Trina Solar, JinkoSolar, SunPower, and Canadian Solar are at the forefront of solar panel manufacturing and solar system solutions. These companies are continuously working to improve the efficiency of photovoltaic modules and reduce costs, which is crucial for expanding the adoption of solar energy across various sectors.

The competitive landscape is characterized by rapid technological advancements, particularly in solar panel efficiency, energy storage integration, and system optimization. Additionally, companies are increasingly focusing on providing end-to-end solar solutions, including installation services, grid connection, and system maintenance, to offer comprehensive offerings to residential, commercial, and industrial customers. Strategic partnerships, mergers, and acquisitions are common in the market as companies look to expand their product portfolios and increase their market share. As the demand for clean energy continues to rise, the competition in the on-grid solar PV market is expected to intensify, with leading companies striving to maintain their position in the global market.

Recent Developments:

• In December 2024, Trina Solar announced a breakthrough in solar panel efficiency, setting a new record in the on-grid solar segment.
• In November 2024, First Solar signed a major contract to supply solar modules for a utility-scale project in the Middle East.
• In October 2024, JinkoSolar launched a new line of bifacial solar panels that boost energy production for on-grid systems.
• In September 2024, LONGi Solar expanded its manufacturing capacity to meet the growing demand for grid-connected solar systems.
• In August 2024, Hanwha Q CELLS announced an increase in production capacity to cater to the European on-grid solar market.

List of Leading Companies:

• Trina Solar Limited
• First Solar, Inc.
• JinkoSolar Technology Co., Ltd.
• Canadian Solar Inc.
• LONGi Solar Technology Co. Ltd.
• Hanwha Q CELLS
• JA Solar Technology Co., Ltd.
• SunPower Corporation
• Risen Energy Co., Ltd.
• Sungrow Power Supply Co., Ltd.
• Vivint Solar
• Enphase Energy, Inc.
• SMA Solar Technology AG
• PowerWorld Corporation
• Sundaya

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