U.S. Solar PV Market Growth & Trends
The U.S. solar PV market size is anticipated to reach USD 96.6 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 15.9% from 2022 to 2030. Reducing prices of solar PV systems has accelerated the adoption of US solar photovoltaic (PV). An increase in government incentives and other financing options is expected to boost the industry’s growth.
The U.S. government has planned to reduce the country’s dependence on conventional energy sources and increase the use of renewable energy sources such as solar, wind, and hydrogen. The government has been constructing utility-scale projects for large-scale power generation.
In terms of revenue, the utility segment accounted for 66.74% of the market for solar power in 2021. The utility sector generates large-scale electricity to power entire communities. There have been high amounts of investment from the US government to invest more in utility-scale solar PV projects and phase out coal and gas power generation. Many companies have also started to invest in utility-scale solar to capitalize on the growing market. For instance, In April 2022, Primenergy announced the construction of the largest solar PV plant in the U.S. The project will be located in Nevada and will generate 690MW of electricity. The plant is expected to be operational by 2023.
Texas was the largest market for U.S. solar PV in terms of revenue in 2021 with 24.93% of the revenue share. The increasing demand for Solar PV in the country can be attributed to the decreasing prices of solar PV that are making them more viable. States with high irradiance such as California, Arizona, and Texas are expected to grow at a higher pace owing to the lower return of investment time frame. States such as New York, New Jersey, and Massachusetts are expected to witness growth in the residential segment owing to the higher concentration of people in these states and relatively lower land available for utility projects.
The industry players are focusing on innovation and technological advancements to reduce the cost of solar PV and to make it competitive with traditional power sources such as natural gas and coal. In addition, the market participants are emphasizing practicing several strategic initiatives such as joint ventures, partnerships, mergers & acquisitions, and others to gain a greater foothold in the forthcoming years.
U.S. Solar PV Market Report Highlights
- In 2021, utility emerged as the largest segment with a revenue share of 66.74%, owing to the utility segment being the most cost-effective and higher investments from the government and private companies
- Texas held a dominant market position with a 24.93% revenue share in 2021 due to a higher irradiance factor of the state and the increasing demand for sustainable energy is expected to boost the growth during the forecast period
- New Mexico is estimated to grow at a significant CAGR over the forecast period owing to the lower penetration of renewable energy in the state boosting market demand and the high amount of sunlight in the state