Rooftop Solar EPC Market Share

Europe Market Forecast

Europe rooftop solar EPC market is projected to account for revenue share of more than 29.7% by the end of 2037. The market’s profitable growth curve is attributed to solar energy becoming the fastest-growing energy source in the region and a conscious push by the countries in the region to reduce dependency on fossil fuels. The decreasing costs of solar energy also increase adoption across various sectors in the region, opening profitable opportunities for market players to provide end-to-end EPC solutions. For instance, the European Union reported the cost of solar energy to have decreased by 82% between 2010 and 2020. The decreasing costs along with the increasing capacity of solar energy production benefit the rooftop solar EPC market’s growth. For instance, the European Union (EU) estimated overall solar generation capacity to have increased by 58.4% from 2021 to 2023.

Germany is a leading market in the region owing to the government's push to reduce dependency on fossil fuels and benefits from the European Union’s programs to push greater adoption of solar energy. For instance, in March 2023, a World Economic Forum (WEF) reported the benefits of the feed-in tariff (FIT) scheme in Germany, where households that produce renewable energy can sell excess to the national grid and pay renewable energy producers a set rate per kilowatt-hour for excess electricity, they sell to the grid. Incentivizing the citizens on the use of solar-powered solutions benefits the adoption of solar PVs.

Additionally, Germany offers homeowners tax incentives for energy-efficient renovations where households can claim 20% of renovation costs of around USD 44 thousand if they replace inefficient systems with renewable alternatives. These measures coupled with public perception shifting towards sustainable solutions have hastened the adoption of solar PVs. For instance, in June 2024, Reuters reported Germany had increased solar installations by 35% in the first four months of 2024 owing to increased adoption in industrial spaces. The rooftop solar EPC market in Germany is poised to increase its market share by the end of 2037 by leveraging the favorable regulatory conditions in the country.

France has a significant share in the Europe rooftop solar EPC market and is projected to increase its profit share by the end of 2037. The market in France benefits from a favorable regulatory ecosystem that provides incentives and tax breaks for the adoption of solar-powered solutions. Additionally, France benefits from the EU’s policies supporting an increase in solar energy generation in the region. For instance, in May 2022, the European Commission adopted the EU solar energy strategy as a part of the broader REPowerEU plan, which will identify challenges in the solar energy industry and actively prepare solutions to overcome the barriers and accelerate the deployment of solar technologies in the region.

The backing by the European Union in the adoption of green solutions will benefit the robust growth of the rooftop solar EPC market in France as an increasing sustainability-concerned public is poised to adopt solar-powered solutions. In February 2024, a new tax credit covering investment expenditure in wind turbines, heat pumps, and solar panels was announced where subject to the French Ministry of the Budget, the tax credit for green energy investments can amount to around USD 382.6 billion. These trends are projected to provide increased opportunities for market players offering end-to-end solar EPC solutions in the country.

APAC Market Analysis

Asia Pacific rooftop solar EPC market is poised to register the fastest growth by the end of the forecast period. The market’s robust growth curve is attributed to large-scale production of solar equipment in China, India, and Japan. China accounts for a majority share of the global distribution chain in the global solar power market. In 2024, Ember estimated solar power generation to increase in Asia Pacific. Additionally, South Asia benefits from high solar insolation and a high density of potential customers increasingly exploring renewable power solutions. The reduced costs of solar power solutions allow countries in Asia to invest in providing remote microgrid solutions to rural communities and bridge the communications divide by making electricity accessible to all. The trends ensure that APAC provides profitable opportunities in the rooftop solar EPC market.

China dominates the solar energy market globally since the country accounts for the highest production of solar equipment in the world. The country has played a key role in reducing the costs of solar power globally. For instance, IEA reported China to have more than 80% share in all manufacturing stages of solar panels and the production exceeds global demand, causing a surplus and pushing prices down. Additionally, China has actively invested in the domestic rooftop solar EPC market boosting the rooftop solar EPC sector’s growth. For instance, IEA reports USD 50 billion was invested in new solar supply capacity from 2011 to 2022 by the government and domestically China is installing twice as much solar power compared to other countries. The domestic providers of end-to-end EPC solutions for industrial, residential, and commercial sectors in the country are poised to leverage benefits from the global leadership of China in the solar power sector.

India is projected to increase its market share in APAC and the global rooftop solar EPC market. The market’s growth is attributed to the country’s position as third globally in solar-powered electricity generation as per a report by Ember. Additionally, tariffs set on China by the U.S. benefit India as the country can fill the supply gap. For instance, in February 2024, the government reported solar panels worth USD 1.3 billion exported from India in 2022-23. The massive exports coincide with a burgeoning domestic market that is seeing greater adoption of solar-powered solutions across various sectors, increasing rooftop solar EPC market opportunities for companies providing EPC solutions. Government incentives and tax breaks for the adoption of solar-powered solutions are set to increase adoption rates within the country. For instance, in February 2024, PM Surya Ghar Muft Bijli Yojana was launched which will provide subsidies of up to 40% of the cost of installing solar panels on roofs.