North America Solar PV Market Outlook to 2030

North America Solar PV Market Overview

• The North America Solar PV Market is valued at USD 29.3 billion, based on a five-year historical analysis. This growth is driven by increasing government incentives for renewable energy, technological advancements in PV systems, and declining costs of solar modules, which have significantly reduced installation expenses. The strong demand for clean energy sources to combat climate change has further bolstered the markets expansion, with substantial investments flowing into solar infrastructure projects across the region.

• In North America, the United States and Canada are dominant players in the Solar PV Market. The U.S. leads due to its large-scale utility projects, supportive federal tax credits, and favorable policies for renewable energy. In Canada, provinces such as Ontario and Alberta have implemented green energy initiatives, driving local PV installations. These factors establish the U.S. and Canada as the principal contributors to market growth, owing to their policies, economic capacity, and energy transition goals.
• Federal policies in North America are highly supportive of solar PV. In the U.S., the Inflation Reduction Act extends tax credits for solar projects, while the Department of the Interior has expedited approvals for solar installations on public lands. Canadas federal government also promotes solar through programs such as the Clean Energy Incentive, which offers tax credits for solar investments, fostering growth in both residential and utility-scale segments.

North America Solar PV Market Segmentation

By Application: The North America Solar PV market is segmented by application into residential, commercial, industrial, utility, and off-grid sectors. Among these, the utility segment holds the dominant share due to the increasing number of large-scale solar farms and utility companies initiatives to integrate renewable energy into their grid systems. Utility-scale projects benefit from economies of scale, allowing for significant energy production, which meets the demand of urban centers while contributing to regional sustainability targets.

By Technology: The market is also segmented by technology into crystalline silicon, thin-film, multi-junction, concentrated PV (CPV), and organic PV. Crystalline silicon technology leads due to its high efficiency and extensive usage in both residential and commercial PV applications. Its long-standing presence in the industry and technological advancements in silicon-based modules have made it the preferred choice, especially in urban and suburban regions with significant solar installations.

North America Solar PV Market Competitive Landscape

The North America Solar PV market is consolidated with a few key players dominating due to their scale of operations, technological advancements, and strong distribution networks. Companies like First Solar and Canadian Solar lead the market with large-scale utility projects and a focus on technology improvements, setting a high competitive benchmark.

North America Solar PV Industry Analysis

Growth Drivers

• Environmental Regulations: The North American Solar PV market is heavily influenced by stringent environmental regulations aimed at reducing greenhouse gas emissions. The U.S. government, through the Environmental Protection Agency (EPA), mandates emission reduction policies, impacting power generation sectors that still depend on fossil fuels. For instance, the EPAs Clean Power Plan targets a substantial reduction in carbon dioxide emissions from power plants by enforcing limits on pollution levels. This regulatory environment has accelerated the shift towards clean energy sources, including solar. The Canadian Environmental Protection Act also sets similar mandates, with Canada pledging to eliminate coal-fired electricity by 2030.
• Technological Advancements: Advancements in PV technology are improving the efficiency and durability of solar panels in North America. Current developments in multi-junction cells and perovskite materials have led to higher efficiency rates, with average cell efficiencies now reaching over 22%. This increase in efficiency, supported by research institutions like the National Renewable Energy Laboratory (NREL), boosts energy production per panel, enabling more viable large-scale solar projects. NRELs recent data highlights that these advancements are making solar a more competitive energy source in North Americas renewable energy market.
• Declining Installation Costs: The average cost per watt for solar PV systems has significantly decreased in recent years, owing to advancements in manufacturing and an increase in local suppliers. Reports from the U.S. Department of Energy show that, as of 2024, the cost per watt for residential installations dropped to around $3, while utility-scale installations average at about $1. The competitive pricing of solar PV systems encourages adoption across residential, commercial, and utility-scale sectors, making solar energy more accessible and affordable for North American consumers.

Market Challenges

• High Initial Investment: Despite declining costs, solar PV installations still require a high initial investment, especially for larger, utility-scale projects. According to the U.S. Energy Information Administration, the capital expenditure for large-scale solar projects remains substantial, which can deter smaller energy providers and rural areas from fully investing in solar infrastructure. This challenge impacts market penetration, particularly in less populated or economically diverse regions across North America, where financial resources are limited.
• Energy Storage Limitations: Solar PVs reliance on intermittent sunlight makes effective energy storage crucial, yet North Americas grid-scale storage capacity is still developing. As of 2024, North Americas storage facilities could handle approximately 9.4 gigawatts, according to the U.S. Department of Energy. This limitation affects solar power availability during peak demand periods, thereby influencing the stability and reliability of the energy supply. Without advancements in storage technologies, the regions dependency on traditional energy sources may persist.

North America Solar PV Market Future Outlook

Over the next five years, the North America Solar PV market is expected to experience substantial growth driven by continued government support for renewable energy, advancements in solar panel efficiency, and increasing corporate investments in clean energy. These factors, combined with rising environmental awareness, will likely accelerate the adoption of solar PV across residential, commercial, and utility segments. Initiatives such as tax incentives and renewable energy mandates will further promote large-scale solar projects, enhancing the regions solar capacity.

Opportunities

• Emerging Markets: North Americas solar PV market finds substantial growth opportunities in emerging markets such as Mexico, where solar projects are expanding due to favorable climate conditions and supportive energy policies. Mexicos Secretariat of Energy projects a steady increase in solar capacity as energy reform policies encourage foreign investment in renewables. The Mexican governments target for renewables to reach 35% of total energy production by 2025 underscores these growth prospects.
• Innovations in PV Technology: Innovations in solar technology present growth opportunities for North Americas PV market. The development of tandem solar cells, projected to surpass efficiencies of 30%, enables enhanced energy yield. Organizations like Canadas National Research Council are exploring advancements in tandem and thin-film technologies that will enable solar PV systems to generate power efficiently, even in low-light conditions. These innovations enhance the applicability of solar PV in various climates across North America.