Rooftop Solar PV Market Regional Analysis:
Asia Pacific Market Statistics
Asia Pacific rooftop solar PV market is projected to hold revenue share of over 41.4% by the end of 2035. This growth is driven by favorable government initiatives, such as subsidies and incentives promoting clean energy adoption, and an increasing emphasis on energy conservation. Rapid development in countries like China, India, and Japan has escalated energy demand in the commercial and industrial sectors. The rise in urbanization and industrialization is highly responsible for the increasing need for energy.
The residential need for energy and their consumption has seen a sudden strike due to the living standards of people in this region. Furthermore, technological enhancements and the declining costs of solar panels and installations have made rooftop solar PV systems more accessible, further propelling the rooftop solar PV market growth. The industry in China, Japan, and India is further driven by favorable government policies that offer subsidies and financial incentives for solar PV projects, together with the current major market participants.
China is dominating the rooftop solar PV market in the region. This dominance is primarily attributed to rapid urbanization and industrialization which have heightened energy demands, promoting a shift towards distributed energy generation to minimize reliance on traditional carbon emissions and achieving climate goals further propelling rooftop solar PV market growth. Notably, the government has mandated that 50% of rooftop space on party and government buildings, 40% for public buildings, 30% for industrial & commercial space, and 20% for rural households, significantly influencing the dynamics of the rooftop solar PV industry.
North America Market Analysis
North America rooftop solar PV market is poised for substantial growth during the forecast period, driven by heightened awareness of climate change and a collective shift towards reducing carbon footprints among consumers and businesses. This trend is further bolstered by rising electricity prices, prompting homeowners to seek alternative energy solutions, thereby positioning the residential sector as a significant contributor to market expansion.
The U.S. rooftop solar PV market is propelled by governmental initiatives aimed at reducing fossil fuel consumption and promoting photovoltaic energy adoption. A pivotal policy, the Investment Tax Credit (ITC), allows homeowners to deduct 30% of their solar energy system installation costs from their federal taxes, significantly lowering the financial barriers to solar adoption. Additionally, environmental campaigns highlighting the urgency of addressing climate change and reducing carbon emissions have motivated consumers to transition to renewable energy solutions, further bolstering the market.
In Canada, the rooftop solar PV market has experienced notable growth, driven by strong government support and financial incentives. The federal government offers tax credits and grants, such as the Canada Greener Homes Grant, providing homeowners with up to USD 5,000 for installing solar panels. Moreover, certain municipalities, like the Town of Banff, offer additional rebates to encourage solar adoption. These incentives, coupled with a national commitment to reducing reliance on fossil fuels, have spurred increased investment in rooftop solar installations across the country.
The growing consumer demand for clean energy solutions aligns with Canada's environmental objectives, positioning the rooftop solar PV market for continued expansion. For example, A homeowner in Ontario can benefit from the Canada Greener Homes Grant, receiving a 30% rebate for installing solar panels. Additionally, making the transition to solar energy more financially feasible. These combined incentives not only reduce the initial investment cost but also contribute to long-term energy savings and environmental benefits.
