PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1757525
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1757525
Global Distributed Solar Power Generation Market to Reach US$204.2 Billion by 2030
The global market for Distributed Solar Power Generation estimated at US$144.6 Billion in the year 2024, is expected to reach US$204.2 Billion by 2030, growing at a CAGR of 5.9% over the analysis period 2024-2030. Monocrystalline Solar Module, one of the segments analyzed in the report, is expected to record a 7.4% CAGR and reach US$91.7 Billion by the end of the analysis period. Growth in the Polycrystalline Solar Module segment is estimated at 3.9% CAGR over the analysis period.
The U.S. Market is Estimated at US$39.4 Billion While China is Forecast to Grow at 9.6% CAGR
The Distributed Solar Power Generation market in the U.S. is estimated at US$39.4 Billion in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$42.1 Billion by the year 2030 trailing a CAGR of 9.6% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 2.8% and 5.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.9% CAGR.
Global Distributed Solar Power Generation Market - Key Trends & Drivers Summarized
Why Is Distributed Solar Power Gaining Ground Across the Globe?
The global market for distributed solar power generation is undergoing a transformative surge, as economies strive for energy decentralization and sustainability in the face of climate change and fossil fuel depletion. Distributed solar systems, primarily composed of rooftop photovoltaic panels and small-scale solar setups, enable electricity generation close to the point of consumption. This decentralization reduces transmission losses, enhances grid resilience, and empowers consumers to manage their own energy needs. Countries around the world are aggressively promoting the adoption of distributed solar systems through incentives, subsidies, net metering policies, and regulatory reforms. The democratization of power production-where households, small businesses, and institutions can generate and use their own electricity-is a defining feature of this market. Additionally, distributed solar aligns with broader decarbonization goals, making it a strategic choice for governments looking to meet emission reduction targets under international climate accords. The global momentum for energy equity and accessibility further fuels the demand, especially in regions lacking centralized power infrastructure.
How Is Technology Elevating the Performance and Appeal of Small-Scale Solar?
Advancements in photovoltaic technologies have significantly improved the efficiency, durability, and affordability of distributed solar power systems. High-efficiency mono and polycrystalline silicon panels now deliver greater energy output with smaller footprints, while innovations in inverter technology-particularly microinverters and power optimizers-maximize system performance even under partial shading conditions. Energy storage integration has also become a key differentiator, enabling users to store excess solar power for use during outages or nighttime. Moreover, smart metering and remote monitoring capabilities are empowering users with real-time insights into energy generation and consumption, enhancing transparency and user control. Solar financing models, such as leasing and power purchase agreements (PPAs), have lowered the entry barriers for residential and small commercial users. Innovations in installation methods-like plug-and-play kits and modular systems-are making solar adoption quicker and less labor-intensive. As manufacturing scales up and competition intensifies, equipment prices continue to decline, further accelerating the affordability and attractiveness of distributed solar solutions.
Which Markets Are Leading and What’s Driving Regional Growth?
The adoption of distributed solar power is highly region-specific, influenced by policy frameworks, solar irradiance, and infrastructure maturity. Asia-Pacific leads the global market, with China and India implementing large-scale residential and commercial solar initiatives. China, in particular, has pushed aggressive rooftop solar programs as part of its national clean energy targets. India’s government is supporting rooftop solar through dedicated subsidies, low-interest loans, and mandates for government buildings and institutions. In North America, the United States has seen significant growth, driven by strong state-level policies, net metering regulations, and the popularity of solar leasing programs. Europe continues to expand distributed solar capacity, particularly in Germany, the Netherlands, and Italy, where feed-in tariffs and green building mandates play critical roles. In emerging markets such as sub-Saharan Africa and Southeast Asia, distributed solar is increasingly seen as a viable solution to energy access challenges, often deployed in off-grid or mini-grid configurations that bypass the need for centralized power infrastructure altogether.
What Are the Key Factors Driving Market Growth?
The growth in the distributed solar power generation market is driven by several factors, including falling prices of solar PV components, the evolution of favorable policy mechanisms, and heightened awareness of energy self-sufficiency among consumers. Technological improvements in solar panel efficiency, inverter design, and battery storage solutions are making distributed systems more productive and reliable. Rapid urbanization and the construction of new residential and commercial properties provide ample rooftop space and demand for localized energy solutions. Consumer behavior is shifting toward sustainability, with growing interest in lowering utility bills and reducing carbon footprints. Governments are actively supporting the sector with tax incentives, renewable portfolio standards, and net metering policies that make distributed generation financially viable. The need for grid resilience-especially during extreme weather events or energy crises-is pushing utilities and regulators to accommodate more decentralized solar input. Lastly, the integration of solar with digital platforms and smart home technologies is making it an increasingly seamless and intelligent component of modern energy ecosystems.
SCOPE OF STUDY:
The report analyzes the Distributed Solar Power Generation market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Solar Module (Monocrystalline Solar Module, Polycrystalline Solar Module, Cadmium Telluride Solar Module, Amorphous Silicon Solar Module); Type (Rooftops Type, Ground-Mounted Type); End-Use (Residential End-Use, Commercial End-Use, Industrial End-Use)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
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