1. Market Research
  2. > Energy & Environment
  3. > Energy
  4. > Renewable Energy
  5. > Solar Energy Market Trends
United States Solar Energy Market - Growth, Trends, and Forecasts (2020 - 2025)

United States Solar Energy Market - Growth, Trends, and Forecasts (2020 - 2025)

  • August 2020
  • 138 pages
  • ID: 5954264
  • Format: PDF
  • Mordor Intelligence LLP


Table of Contents

Search Inside

The United States solar energy market is expected to grow at a CAGR of 17.32% during 2020-2025. Factors, such as solar PV projects under construction, in the pipeline and planning stages, and supportive policies of the government are expected to boost the cumulative installed capacity of solar energy during the forecast period. Like many other industries, the solar energy industry has been hit hard by COVID-19 pandemic, resulting in uncertainty for the players involved in the solar energy market. More than 72,000 solar workers are expected to lose their jobs because of the pandemic. According to the industry experts, around 30% decline is anticipated in the new solar PV capacity additions in 2020. This decline in new installations can be attributed to challenges posed by work being halted, permitting delays, and the decline in consumer demand. In addition, financing for solar projects has become a significant challenge. The economic downturn is causing tax equity markets to dry up, an important market that solar companies use to finance their projects. These challenges are expected to have a significant impact on small businesses and new entrants in the United States’ solar energy industry..

- In 2019, the country’s PV installations increased by 24% Y-o-Y, with the residential and utility-scale markets growing by 16% and 38%, respectively. However, the non-residential markets contracted by 4%. The United States installed 13.4 GW of PV in 2019. The Q1 2020 recorded the highest solar PV installations in history, driven by nearly 2 GW of utility-scale solar, supplemented by 1.6 GW of residential, commercial, and industrial solar PV installations.
- The perovskite-based PV cells attracted attention in the recent years. Perovskite-based PV cells offer high ease of manufacturing, high efficiency, and excellent semiconducting behavior. Hence, they are comparable to the silicone-based solar PV in terms of solar-to-electric efficiency. Hence, technological advancements in manufacturing of PV cells are likely to lead to a mass-scale production, which is likely to offer growth opportunities.
- In terms of deployment, the United States witnessed a record-setting residential solar capacity addition in 2019, with more than 2.8 GW installed. In 2019, the California residential solar adoption across the country was driven by factors, such as resiliency and concerns about climate change.

Key Market Trends
Solar Photovoltaic (PV) Expected to Dominate the Market

- In 2019, the United States was the second-largest PV market in terms of both cumulative and annual installations. Cumulative installed PV capacity in the country was 74.84 GW in 2019, with the utility segment accounting for the significant share (61.05%).
- California has the highest solar PV generation in the country, accounting for almost 20% in 2019, representing a 52 times increase from 0.4% in 2010. Moreover, PV solar installation in other emerging states in the country, such as Texas, Utah, and Florida, is expected to register significant growth during the forecast period, supporting the market’s growth.
- In early 2018, the governor of Hawaii passed a law pledging the state to become carbon-neutral by 2045. Adding to this, Vermont, a county that has focused on increasing its commercial-scale solar PV capacity since 2011, pledged to have 90% of its consumed energy from renewable sources by 2050. Moreover, states with low installations five years ago are now driving significant demand. In 2015, Texas and Florida totaled 4% of new United States PV installations, and in 2019, representing 20% of the total solar PV installed capacity.
- The percentage of electricity generated by fossil fuels in the United States has dropped from 70% in 2010 to 62% in 2019, while renewable power generation increased from 10%–18% over the same period. Although solar PV only contributed 2.6% of power generation in 2019, it has increased by almost 43 times since 2010. Therefore, with government policies supporting the penetration of solar PV in the energy mix, it is expected to grow during the forecast period.
- The Solar Investment Tax Credits (ITC) have proved to be one of the most successful US government schemes in encouraging solar power generation. ?Under Solar ITC schemes, the residential, commercial, and utility solar plant owners can claim 30% of federal tax credits against solar energy property. This scheme has helped reduce the solar power generation cost in the country. ?
- The utility-scale solar PV sector has led the overall solar market in the United States, in terms of installed capacity, accounting for nearly 61% of installed capacity in 2019. Four new states, Washington, Wyoming, Vermont, and Connecticut, added their first utility-scale solar project in 2018, three-quarters of all states in the country are now equipped with one or more utility-scale solar projects.
- In April 2020, BayWa obtained a tax equity investment and construction term financing for the 134 MW Fern Solar project, comprising 353,276 solar panels and 42 inverters in Edgecombe County, North Carolina. The construction of the projects is underway, which is expected to provide solar power to the Corporate Renewable Energy Aggregation Group, consisting of Bloomberg, Cox Enterprises, Gap Inc., Salesforce, and Workday.
- Further, ConnectGen, a Houston-based renewables developer, is planning a USD 500 million, 500 MW solar power project in Leon County, Texas. The projects are to be built on 1,300 acres in the southwestern part of the county, with construction to begin in 2021, with operations starting by mid-2022 for the first phase and by the end of 2023 for the second phase.
- Moreover, the amount of utility-scale solar capacity in the development pipeline hints toward a continued momentum and a significant expansion of the industry in future years, driving the country’s solar energy market growth.
- Homeowners and businesses are increasingly demanding solar systems that are paired with battery storage. The pairing is still relatively in nascent stages, and the growth over the next five years is expected to be significant. By 2025, according to the SEIA, more than 25% of all behind-the-meter solar systems will be paired with storage, compared to under 5% in 2019, further bolstering the solar energy market growth.

High Investment Attractiveness of the United States Solar Power Market

- Due to the COVID-19 outbreak in 2020, most of the major countries worldwide are expected to register a slowdown in solar power installation due to the following two reasons.
- The solar power investments are being postponed due to the decline in funds.
- Many of these countries, like European countries, Australia, and India, depend on imports to meet the demand for solar panels.
- In the United States, tax credits on the renewables are expected to expire in 2021. Hence, the investors in solar power are expected to rush to finish the projects during 2020 and 2021. This trend is expected to partly offset the negative impacts of the COVID-19 on the investments in the solar industry.
- The US government had imposed a 30% tax on solar panel imports. This resulted in increased competitiveness of the locally manufactured solar panels, driving the local manufacturing of solar panels. Hence, the United States is expected to be less reliant and less sensitive to the international supply chain disruption. Hence, during 2020 and 2021, solar power installations are expected to register positive growth in terms of total capacity.
- Also, given the disruption of the supply chain resulting in an increase in the raw material prices, the solar power cost per MW is expected to stagnate. Hence, the United States is expected to be among the few major countries in the world to register positive growth in the solar market.
- Beyond 2021, due to the declined demand for solar energy globally and the availability of a large global solar panel manufacturing capacity, solar power costs are expected to decrease at a faster rate than anticipated before the COVID-19 outbreak. The primary causes of this decline are expected to be the situation of oversupply and increased price-sensitivity of the power plant operators due to economic slowdown. Hence, during the second half of the forecast period, solar energy cost-decline at a faster rate is expected to drive the market.
- Hence, the high attractiveness of the United States solar power market due to the expiry of tax credits in the first half of the forecast period, and declining solar panel costs during the second half of the forecast period, is expected to drive the United States solar energy market during the forecast period.

Competitive Landscape
The United States solar energy market is fragmented. Some of the key players in this market include M. A. Mortenson Company, First Solar, Inc., NextEra Energy Inc, Swinerton Renewable Energy, and 8minutenergy Renewables LLC.

Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

ReportLinker may already be registered as a supplier with your company. If you want to Order by PO, check with us first and we'll let you know if we are a registered supplier and what the vendor number is. Otherwise, we'll provide you with the necessary information to register ReportLinker as a vendor.

Ahmad helps you find the right report:

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at [email protected] to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - [email protected] or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers


Reportlinker.com © Copyright 2021. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on