The US Solar PV Market Outlook A Decade of Growth

The US solar photovoltaic (PV) market is on track to reach a valuation of $46.8 billion by 2034, growing at a compound annual growth rate (CAGR) of 9.5% from 2024 to 2034. This impressive growth trajectory is fueled by advancements in technology, supportive policy frameworks, and rising consumer demand for renewable energy.

As we look ahead, the US solar PV market is set to undergo a transformative shift. Innovations in solar PV technologies, such as enhanced efficiency and reduced manufacturing costs, are making solar energy increasingly competitive with traditional fossil fuels.

A growing awareness of climate change and the advantages of renewable energy, combined with falling costs for solar PV systems, is driving adoption across residential, commercial, and utility-scale sectors throughout the US.

This evolving market presents a wealth of opportunities for stakeholders across the value chain—manufacturers, developers, investors, and policymakers—who are poised to benefit from the surge in demand for clean and sustainable energy solutions. The US solar PV sector is entering a new era of growth, supported by technological advancements, favorable policies, and enhanced economic viability.

The U.S. solar photovoltaic (PV) market is witnessing rapid growth, driven by technological advancements, favorable government policies, and increasing consumer demand for clean energy. Key players in the industry are making strategic moves to capitalize on this growth and secure their positions in the market.

Here are some of the major strategic moves by key players shaping the U.S. solar PV market:

1. Expanding Production Capacity

To meet the growing demand for solar panels, major solar companies are expanding their production capacity and establishing new manufacturing facilities.

a. Domestic Manufacturing

• First Solar: First Solar, a leading U.S. solar panel manufacturer, is investing in domestic manufacturing facilities to increase production capacity. The company announced plans to build a new manufacturing plant in Ohio, which will enhance its ability to supply solar panels to the U.S. market and reduce reliance on imports .

• Tesla: Tesla's solar division, Tesla Energy, continues to ramp up production at its Gigafactory in Buffalo, New York. The facility focuses on producing solar panels and Solar Roof tiles, contributing to Tesla’s efforts to capture a larger share of the residential solar market .

b. Vertical Integration

• SunPower Corporation: SunPower has adopted a vertical integration strategy by acquiring solar panel manufacturer Maxeon Solar Technologies. This move allows SunPower to control the entire value chain, from manufacturing to installation, enhancing its competitiveness in the market .

2. Innovative Product Offerings

Key players are introducing innovative products and solutions to differentiate themselves and attract a wider customer base.

a. Advanced Solar Technologies

• Enphase Energy: Enphase Energy, known for its microinverter technology, continues to innovate by developing advanced energy management solutions. The company’s Enphase Energy System combines solar generation, energy storage, and intelligent software to provide customers with a comprehensive energy solution .

• Sunrun: Sunrun, a leading residential solar provider, has expanded its product portfolio to include solar energy storage solutions. The company’s Brightbox home battery system allows customers to store excess solar energy for use during peak demand periods, enhancing energy resilience and reducing reliance on the grid .

b. Integrated Energy Solutions

• Vivint Solar: Vivint Solar has integrated smart home technology with its solar offerings, providing customers with a seamless and efficient energy management experience. By partnering with smart home companies, Vivint Solar offers customers the ability to monitor and control their energy usage remotely .

3. Strategic Partnerships and Collaborations

Collaborating with other industry players and stakeholders allows solar companies to expand their market reach and enhance their capabilities.

a. Utility Partnerships

• NextEra Energy: NextEra Energy, one of the largest renewable energy companies in the U.S., has formed partnerships with utilities to develop large-scale solar projects. These collaborations enable NextEra to leverage its expertise in solar project development and provide clean energy to utility customers .

• Duke Energy: Duke Energy has partnered with solar developers to expand its solar energy portfolio and meet renewable energy goals. The company’s partnerships facilitate the development of utility-scale solar projects, contributing to the growth of solar capacity in its service areas .

b. Technology Collaborations

• Siemens and AES Corporation: Siemens and AES Corporation have partnered to create Fluence, a joint venture focused on energy storage solutions. This collaboration aims to integrate solar and storage technologies, providing customers with reliable and efficient energy solutions .

4. Geographic Expansion

Key players are expanding their operations to new geographic regions to capture emerging market opportunities and diversify their revenue streams.

a. Entering New Markets

• SolarCity (Tesla Energy): Tesla Energy’s solar division, SolarCity, is expanding its presence in new states and regions across the U.S. By targeting markets with high solar potential and favorable policies, SolarCity aims to increase its market share and reach more customers .

• Sunrun: Sunrun has expanded its operations to new states and regions, focusing on areas with strong solar incentives and high electricity costs. By entering new markets, Sunrun aims to tap into untapped customer segments and drive growth .

b. International Expansion

• First Solar: In addition to expanding domestically, First Solar is pursuing international opportunities by entering emerging markets with significant solar potential. The company’s global expansion strategy allows it to diversify its revenue sources and mitigate risks associated with market fluctuations .

5. Investment in Research and Development

Continuous investment in research and development (R&D) is essential for solar companies to stay competitive and drive innovation.

a. Efficiency Improvements

• First Solar: First Solar is investing in R&D to enhance the efficiency and performance of its thin-film solar panels. By improving module efficiency, the company aims to reduce the cost of solar energy and increase its competitiveness in the market .

• SunPower Corporation: SunPower is focusing on developing high-efficiency solar cells and panels to offer customers superior energy solutions. The company’s R&D efforts aim to increase the energy output of its solar products, providing customers with greater value .

b. New Technologies

• Enphase Energy: Enphase Energy is investing in R&D to develop next-generation microinverter technology and energy management solutions. The company’s focus on innovation allows it to offer cutting-edge products that meet the evolving needs of customers .

• Tesla: Tesla is investing in R&D to improve the design and performance of its Solar Roof tiles. The company’s efforts to develop aesthetically pleasing and durable solar products aim to attract a wider range of customers .

Conclusion

The strategic moves by key players in the U.S. solar PV market are shaping the industry’s landscape and driving its growth. By expanding production capacity, introducing innovative products, forming strategic partnerships, and investing in R&D, solar companies are positioning themselves to capitalize on the increasing demand for clean energy solutions. As the market continues to evolve, these strategies will play a crucial role in determining the success and competitiveness of key players in the solar industry.