U.S. Solar Power Market Size, Share & Trends Analysis, 2032

Segmentation Analysis

Technology Analysis

In the U.S. solar power market, the photovoltaic technology was the leading category in 2024, with a share of 92%, because of its cost-effective and simple installation. The solar PV technology has broad use in residential, along with commercial and utility-scale installations, due to the ongoing price reductions and improving technologies. The PV technology primarily leads because sunlight directly powers it without extensive processes or complicated systems. Hence, it is preferred for distributed rooftop deployments and stationary power plants.

The concentrated solar power technology is the faster-growing technology because it provides the capacity for massive power generation, along with storage features. The principle of PV differs from CSP, which applies reflective mirrors to harness sunlight, which is then converted to heat. The heat can be stored or directly used to drive a steam turbine for electricity production after sunset; it can even be used for heating and cooling purposes.

The technologies analyzed here are:

• Solar Photovoltaic (PV) (Larger Category)
• Concentrated Solar Power (CSP) (Fastest-Growing Category)

Application Analysis

Utility-scale power generation is the dominant category in the market as utilities possess the most-extensive installed capacity in the country. Solar power companies are constructing large farms across the country because prices continue to decrease and the country has set specific targets for renewable energy. As per the U.S. Environmental Protection Agency, the electricity generation sector is responsible for 25% of the country’s GHG emissions. Hence, utilities continue to dedicate their investments toward extensive solar setups because they need to switch from fossil fuels and create clean energy to meet the rising power needs. Large-scale solar operations provide the main support structure for the U.S. clean energy grid due to their ability to scale operations and operate efficiently.

The residential sector is the fastest-growing, with 14.43% CAGR, because homeowners want energy independence. Additionally, the decreasing LCoE of solar energy and federal and state support programs, including ITC, increase the customer demand. People are choosing to install rooftop solar panels because these systems decrease utility costs, while giving them independent electricity access. Additionally, the net metering rules, which allow people to sell excess power to the grid, coupled with the improving battery storage options, drive the market in this category.

The applications analyzed here are:

• Residential (Fastest-Growing Category)
• Commercial and Industrial
• Utility (Largest Category)

Power Output Analysis

The large category leads the U.S. solar power market with 55% revenue in 2024, as utility-scale plants supply significant quantities of electricity to the power grid. Utility organizations select these projects because they deliver cost-effectiveness in power generation, which enables price reduction for the end consumer. Solar power systems benefit from lower production costs, when implemented on large scales, feature better storage capabilities, and are operated under lengthy agreements with businesses and government entities for electricity purchases.

Low-power-output facilities are the fastest-growing because people are installing solar systems in their residences and commercial buildings. Households and business owners choose rooftop solar installations with distributed technology systems due to financial cost reduction, need for energy independence, and benefits from federal tax incentives and net metering rewards. The combination of an improving solar panel technology, storage capability, solar lease, and community-scale solar product offerings has reduced the barriers to accessing small-scale solar installations in the country. As per the IEA, in 2023, small-scale installations accounted for almost 30% of the total solar power capacity of the U.S.

The power outputs analyzed here are:

• Low (Fastest-Growing Category)
• Medium
• High (Largest Category)

U.S. Solar Power Market Regional Market Performance

The western region of the U.S. leads its solar power market with 40% revenue as it benefits from sunny skies, progressive renewable energy guidelines, and numerous solar facilities. According to the Solar Energy Industries Association, the solar power capacity of California is the highest in the country, at 49,777 MW in Q2 2024. This is because the state has implemented aggressive clean energy requirements, with supportive net metering structures. It also strongly encourages solar implementation at the residential, commercial, and utility levels. The extensive solar power facilities built across large, unpopulated areas help strengthen the regional power system.

The southern region is the fastest-growing in the market because of the investments made in different states. As per a study, Texas, Florida, and Virginia have invested the most across the U.S. in solar energy since 2018. They have spent USD 46.3 billion, USD 21.7 billion, and USD 7.2 billion, respectively, till now. The southern states are shifting to solar power because they rely on fossil fuels yet want to move away from them. Additionally, the declining prices and need of corporations for sustainable energy, alongside the increasing electricity demand the highly populated south drive solar deployment. Regional states are developing large-scale projects that will work parallel to their established wind power plants.

The regions analyzed here are:

• Northeast
• Midwest
• West (Largest Region)
• South (Fastest-Growing Region)