PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1836267
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1836267
Solar Lease Service Market size was valued at US$ 19,856.12 Million in 2024, expanding at a CAGR of 18.5% from 2025 to 2032.
A Solar Lease Service constitutes a financial arrangement whereby a solar company installs solar panels on a client's property, and the client pays a fixed monthly fee to access the electricity generated by the system. The ownership of the panels is retained by the solar company, allowing the client to take advantage of solar energy without facing substantial initial costs. This model promotes the adoption of solar energy for homeowners or businesses without the challenge of high upfront expenses. Solar Lease Services offer users the chance to benefit from solar energy without the financial burden or maintenance responsibilities, making it a viable and eco-friendly option.
Solar Lease Service Market- Market Dynamics
Increased Adoption of Renewable Energy is expected to drive the growth of the market.
Governments and enterprises across the globe are advocating for clean energy initiatives to mitigate carbon emissions and address climate change. Solar energy, recognized as one of the most accessible and scalable renewable resources, directly benefits from this movement. According to the International Energy Agency, global renewable electricity generation is projected to exceed 17,000 terawatt-hours (TWh) by the conclusion of this decade, representing an increase of nearly 90% from 2023. This amount would suffice to satisfy the combined energy requirements of China and the United States by 2030. Additionally, the integration of battery storage, intelligent energy management systems, and high-efficiency solar panels significantly enhances the attractiveness of solar leases. Nevertheless, regulatory uncertainty may impede market growth.
Solar Lease Service Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 18.5% over the forecast period (2025-2032)
Based on application segmentation, Rooftop Solar was the leading application in 2024
Based on end-user segmentation, Residential was the leading end-user in 2024
Based on region, the Asia Pacific was the leading revenue generator in 2024
The Global Solar Lease Service Market is segmented on the basis of Solar Panel Type, Application, Ownership Model, End-User, and Region.
The market is categorized into three segments according to Solar Panel Type: Monocrystalline, Polycrystalline, Thin Film, and Others. Among these categories, Monocrystalline panels are extensively utilized in solar lease services due to their superior efficiency, enhanced performance in constrained roof spaces, and extended lifespan, rendering them the preferred option for both residential and commercial leasing. Polycrystalline panels represent a substantial portion of the market as a budget-friendly alternative, particularly in larger installations, whereas thin film panels are employed in specific scenarios where lightweight or flexible panels are necessary. The other category encompasses emerging technologies such as bifacial and PERC panels, which are progressively attracting interest in solar lease agreements.
The market is categorized into four segments based on application: Rooftop Solar, Ground-Mounted Solar, Floating Solar, and Agricultural Solar. Rooftop Solar leads in market growth. The Rooftop Solar segment is the primary driver of the Solar Lease Service Market's expansion, fueled by the rising adoption of rooftop installations in both residential and commercial sectors. Customers favor solar leasing and power purchase agreements (PPAs) for rooftops as these options remove substantial upfront costs and provide immediate access to clean energy. Furthermore, rooftop solar enjoys advantages such as minimal land requirements, simplified permitting processes, and quicker installation timelines, making it the preferred option for urban and suburban regions. In addition, supportive government incentives, net metering policies, and an increasing awareness of the benefits of renewable energy continue to promote the uptake of rooftop solar through lease-based models, solidifying its leading position in the market.
The market is categorized into five segments based on the Ownership Model: Third Party Ownership, Host Owned, Community Solar, Solar Leasing, Solar Power Purchase Agreement (PPA), and others. Among these, solar leasing and PPAs stand out as the most significant models, as they enable customers, particularly residential and small commercial users, to embrace solar energy without incurring substantial upfront costs, opting instead to pay for the electricity produced or a predetermined monthly fee. Third-party ownership models are predominantly utilized by large-scale investors and developers, whereas host-owned systems are increasingly popular in commercial environments where the owner seeks complete control and long-term savings. Community solar initiatives are emerging in urban and semi-urban regions, allowing multiple participants to reap the benefits of a single solar installation. The Other category encompasses hybrid ownership frameworks and innovative financing solutions that are progressively making their way into the market.
The market is categorized into five segments based on End-User: Residential, Commercial, Industrial, Utilities, and Government. The Residential segment is at the forefront of market growth. This segment is primarily propelled by the increasing adoption of rooftop solar systems through solar leasing and power purchase agreement (PPA) models. Homeowners are progressively choosing leased solar options to circumvent substantial upfront installation expenses while reaping the benefits of clean and renewable energy. The presence of government incentives, tax credits, and net metering policies further motivates residential customers to embrace solar leasing. Moreover, the ease of installation, real-time energy monitoring, and maintenance services included in lease agreements render residential solar leasing the most appealing and rapidly expanding segment in the market.
Solar Lease Service Market- Geographical Insights
The Asia Pacific region leads in market growth, driven by rapid urbanization, substantial energy demand, and decreasing panel costs. The expansion of cities and residential areas has heightened electricity demand, thereby creating a more extensive market for solar solutions. Innovations in technology and large-scale production have reduced the costs of solar panels, rendering solar lease options more affordable and appealing. In 2024, 38% of China's electricity was produced from low-carbon sources, slightly below the global average of 41%. China was the largest nation in terms of electricity demand. Europe also maintains a considerable market share, due to supportive policies and a strong commitment to renewable energy.
The solar lease service market is currently facing significant competition among major players, all of whom are eager to gain market share by means of innovative solutions, strategic alliances, and a focus on customer satisfaction. Firms that are able to adjust to regulatory shifts, create new financing options, and improve the customer experience are more likely to dominate the competitive environment. Partnerships with local installers, utility firms, or technology providers facilitate broader outreach and enhance service delivery. Companies set themselves apart by offering flexible financing options such as monthly leases, full-term leases, and power purchase agreements (PPAs).
On July 18, 2025, Sunrun, the foremost provider of clean energy through a subscription model in the United States, announced that it has set the pricing for a securitization involving leases and power purchase agreements. This marks Sunrun's fourteenth public securitization since 2015 and its third issuance in 2025.
On July 30, 2025, SolarEdge Technologies, Inc., a prominent leader in smart energy technology, along with Solar Landscape, the foremost U.S. commercial rooftop solar developer, announced a partnership for the provision of SolarEdge's solar technology manufactured in the U.S. This agreement encompasses more than 500 commercial rooftop projects across various states, scheduled for construction in 2025 and 2026.