Global Solar Home Systems Market – Industry Trends and Forecast to 2031

Solar Home Systems Market Analysis and Size

The global solar home systems market has witnessed significant growth and transformation in recent years, driven by various factors such as increasing energy demand, growing environmental awareness, government initiatives, and declining costs of solar technology. The global solar home systems market has experienced robust growth, with the size of the market expanding steadily. As of recent years, the market has seen accelerated growth, especially in regions with limited access to centralized electricity grids, such as rural and remote areas in developing countries.

Data Bridge Market Research analyses that the global solar home systems market which was USD 71.65 billion in 2023, is expected to reach USD 222.25 Billion by 2031, growing at a CAGR of 15.20% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation

Market Definition

A solar home system (SHS) is a renewable energy solution designed to provide electricity to households and small businesses that are not connected to centralized electricity grids or experience unreliable grid access. It consists of several components that work together to capture, store, and distribute solar energy for various household needs.  

Global Solar Home Systems Market Dynamics

Drivers

• Environmental Awareness and Climate Change Mitigation

Growing concerns about climate change and environmental sustainability have catalyzed a global shift towards renewable energy sources such as solar power. This shift is driven by the recognition of the detrimental effects of greenhouse gas emissions from fossil fuel combustion, including global warming, extreme weather events, sea level rise, and biodiversity loss. As a result, individuals, businesses, governments, and international organizations are increasingly prioritizing the transition to clean and sustainable energy sources to mitigate the impacts of climate change.

• Growing Government Policies and Incentives

Supportive government policies, subsidies, tax incentives, and regulatory frameworks are instrumental in driving the adoption and deployment of solar home systems. These policies create a conducive market environment by reducing barriers to entry, lowering upfront costs, and incentivizing investment in solar energy infrastructure. Governments play a critical role in shaping the solar energy market through a variety of policy mechanisms. Many countries have established renewable energy targets and commitments to increase the share of renewable energy in their energy mix. These targets provide a clear signal to the market and encourage investment in solar power generation, including solar home systems.

Opportunities

• Energy Access in Off-Grid Areas

This refers to the provision of reliable and affordable electricity to communities that are not connected to centralized electricity grids. This lack of access affects millions of people worldwide, particularly in rural and remote areas, where extending traditional grid infrastructure is often costly and impractical. The absence of electricity limits opportunities for education, healthcare, communication, and economic development, perpetuating cycles of poverty and inequality. This challenge presents a significant opportunity for the global solar home systems market to make a meaningful impact by providing decentralized and cost-effective energy solutions. Unlike traditional grid-connected systems, solar home systems operate independently and can be installed in remote areas without access to grid infrastructure.

• Rural Electrification Programs Led by Governments, Non-Profit Organizations, and Development Agencies

These programs play a crucial role in accelerating the adoption of solar home systems and expanding energy access in off-grid areas. These programs involve various initiatives, including subsidies, grants, technical assistance, and capacity building, aimed at facilitating the deployment of solar home systems and supporting local communities. Access to electricity enables households to access essential services such as lighting, refrigeration, cooking, and communication, improving health, safety, and overall well-being. Electricity stimulates economic activities by powering small businesses, agricultural operations, and income-generating ventures. It creates opportunities for value addition, market access, and job creation, leading to poverty reduction and sustainable development.

Restraints/ Challenges

• Limited Access to Financing

Access to financing is a critical factor influencing the adoption of solar home systems, especially in regions where households may lack the necessary funds to invest in upfront costs. In many areas, particularly rural and underserved communities in developing countries, there is a lack of financial institutions offering loans or credit specifically for solar home systems. Even when financing options are available, interest rates on loans for solar home systems may be prohibitively high, making them unaffordable for many consumers, especially those with limited incomes. High interest rates increase the overall cost of borrowing and may deter potential customers from pursuing solar energy solutions.

• Lack of Consumer Awareness

Consumer awareness and understanding of the benefits of solar energy and solar home systems play a crucial role in driving adoption and market growth. However, in many regions, there is still limited awareness and knowledge about solar technology, leading to misconceptions and barriers to adoption. Some consumers may have doubts about the reliability and performance of solar home systems, particularly in terms of their ability to generate sufficient electricity to meet household needs. Misconceptions about the intermittency of solar energy and concerns about system durability and longevity may deter potential customers from investing in solar solutions. Another common misconception is related to the affordability of solar home systems. Many consumers perceive solar technology as expensive and unaffordable, particularly compared to conventional energy sources such as grid electricity or diesel generators. Lack of understanding about the long-term cost savings and return on investment (ROI) associated with solar energy may lead to skepticism or reluctance to adopt solar solutions.

This global solar home systems market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the global solar home systems market contact Data Bridge Market Research for an analyst brief, our team will help you take an informed market decision to achieve market growth.

Recent Developments

• In March 2023, regulatory authorities in North Carolina issued an order aimed at enhancing the state's rooftop solar sector. The order approves a three-year transition period for solar customers to move from receiving monthly credits to a more dynamic time-of-use rate structure, which incentivizes the utilization of solar energy during periods of higher value
• In June 2022, Ornate Solar, based in New Delhi, successfully completed the installation of India's largest building-integrated rooftop solar system in Bhagru, Rajasthan. This 530 kWp InRoof system will assist Pangaea Natural Stone, a natural stone manufacturer based in Canada, in achieving its net-zero objectives by offsetting 18,346 metric tons of CO2 emissions

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions. Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Global Solar Home Systems Market Scope

Global solar home systems market is segmented into three notable segments which is type, product type, and application. The growth among segments helps you analyze niche pockets of growth and strategies to approach the market and determine your core application areas and the difference in your target markets.

Type

• PAYG Products
• Cash Products

Product Type

• Grid Tied
• Off Grid
• Hybrid

Application

• Home Appliances
• Lighting
• Computers and Water Pumps
• Others

Global Solar Home Systems Market Regional Analysis/Insights

Global solar home systems market is analyzed and market size information is provided by country, type, product type and application as referenced above.

The countries covered in the global solar home systems market report are U.S., Canada, Mexico, Germany, France, Spain, Turkey, U.K., Netherlands, Russia, Switzerland, Belgium, Hungary, Italy, rest of Europe, China, India, Japan, Australia, South Korea, Malaysia, Singapore, Thailand, Indonesia, Philippines, rest of Asia-Pacific, Brazil, Argentina, rest of South America, South Africa, Egypt, Saudi Arabia, U.A.E., Israel and rest of Middle East and Africa.

Asia-Pacific is the region, dominate the global solar home systems market. This is attributed because their large populations, increasing energy demand, favorable government policies, and initiatives to promote renewable energy adoption.

Middle East and Africa region is the fastest growing region in the global solar home systems market due to in high levels of solar irradiation, off-grid communities, and limited access to electricity from centralized grids, making solar home systems an attractive and viable energy solution.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as new sales, replacement sales, country demographics, regulatory acts and import-export tariffs are some of the major pointers used to forecast the market scenario for individual countries. Also, presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of sales channels are considered while providing forecast analysis of the country data.

Competitive Landscape and Global Solar Home Systems Market Share Analysis

The global solar home systems market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to the global solar home systems market.

Some of the major players operating in the global solar home systems market are:

• ABB (Switzerland)
• Array Technologies, Inc. (U.S.)
• Enphase Energy (U.S.)
• Fosera Solarsystems GmbH & Co. KGaA (Germany)
• Greenlight Planet (Kenya)
• Jinko Solar (China)
• LG Electronics (South Korea)
• Lumos (Netherlands)
• ovSolar Inc. (China)
• Panasonic Holdings Corporation (Japan)
• Phocos (Germany)
• Powerband Green Energy Ltd. (Pakistan)
• Reliance Industries Ltd. (India)
• Schneider Electric SE (France)
• Shell plc (Netherlands)
• SMA Solar Technology AG (Germany)
• SolarEdge (Israel)
• SunPower Corporation (U.S.)
• Tata Power Co. Ltd. (India)
• Tesla (U.S.)
• Trina Solar (China)
• Yingli Solar (China)

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