Rooftop Solar Photovoltaic Market Size, Share | CAGR of 7.9% – Market.us

Report on the Global Rooftop Solar Photovoltaic Market and its Alignment with Sustainable Development Goals (SDGs)

Executive Summary

The Global Rooftop Solar Photovoltaic (PV) Market is on a significant growth trajectory, projected to expand from USD 56.8 billion in 2024 to USD 121.5 billion by 2034, at a Compound Annual Growth Rate (CAGR) of 7.9%. This expansion is critically aligned with the United Nations Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 11 (Sustainable Cities and Communities), and SDG 13 (Climate Action). Rooftop solar PV systems, which convert sunlight into electricity on residential, commercial, and industrial buildings, are instrumental in decentralizing power generation, reducing carbon emissions, and enhancing energy security. The Asia Pacific region leads this transition, accounting for 34.9% of the market, valued at USD 19.8 billion, underscoring its pivotal role in achieving global sustainability targets.

Market Segmentation Analysis and SDG Contribution

By Technology: Crystalline Silicon

Crystalline Silicon technology commands a dominant 79.2% market share. Its widespread adoption is due to proven efficiency, reliability, and long-term performance. This technological stability is fundamental to achieving SDG 7, as it ensures a dependable and consistent supply of clean energy for consumers, thereby fostering trust and encouraging further investment in renewable infrastructure.

By Grid Type: On-Grid Systems

On-grid systems represent 89.1% of the market. These systems integrate seamlessly with existing utility grids, allowing for the efficient feedback of surplus energy. This capability enhances grid stability and promotes the development of resilient energy infrastructure, directly supporting the objectives of SDG 9 (Industry, Innovation, and Infrastructure) and SDG 11 by making urban energy systems more sustainable and efficient.

By Application: Residential Sector

The residential sector is the largest application segment, with a 48.8% market share. The adoption by homeowners is driven by the desire for lower energy costs and greater energy independence. This trend is a direct contribution to SDG 7 by increasing access to affordable and clean energy at the household level. Furthermore, it empowers communities and contributes to the creation of sustainable human settlements as envisioned in SDG 11.

Market Dynamics and Alignment with Global Goals

Driving Factors

The primary driver for the market is the increasing global demand for decentralized clean energy solutions. Rooftop solar PV addresses this by generating power at the point of consumption, which contributes to:

• SDG 7: Providing access to affordable, reliable, and modern energy.
• SDG 13: Reducing reliance on fossil fuels and mitigating climate change by lowering greenhouse gas emissions.
• SDG 11: Enhancing energy resilience in urban communities against grid failures.

Restraining Factors

High upfront installation costs remain a significant barrier to wider adoption. This financial hurdle poses a challenge to the equitable achievement of SDG 7, particularly in lower-income communities and developing nations. Overcoming this restraint through innovative financing models and subsidies is crucial for ensuring a just energy transition.

Growth Opportunities

Advancements in solar cell manufacturing present a major growth opportunity. Investments in technology, such as the USD 10 million grant for Art-PV India, enhance panel efficiency and affordability. This progress directly supports SDG 9 by fostering innovation and building resilient infrastructure. More efficient panels make rooftop solar viable for a wider range of buildings, accelerating the progress towards SDG 7 and SDG 13.

Latest Trends

A key trend is the focus on strengthening the solar supply chain. Initiatives like the USD 40 million in funding from the U.S. Department of Energy aim to create a more resilient and efficient lifecycle for solar components. This trend enhances the reliability of clean energy deployment, which is essential for the long-term success of SDG 7 and supports industrial resilience under SDG 9.

Regional Analysis and Contribution to SDGs

The regional distribution of the rooftop solar PV market highlights a collective global effort towards sustainable energy, with each region contributing uniquely to the SDGs.

1. Asia Pacific: Dominating the market with a 34.9% share, this region’s rapid adoption is critical for global progress on SDG 7 and SDG 13. Its efforts are central to decarbonizing a region with high energy demand and dense urban populations.
2. North America: A mature market focused on reducing carbon footprints and enhancing energy independence. Its growth contributes significantly to SDG 13 and promotes sustainable urban living under SDG 11.
3. Europe: Characterized by strong policy support and sustainability goals, Europe’s adoption of rooftop solar is integral to its strategy for climate action (SDG 13) and creating sustainable cities (SDG 11).
4. Middle East & Africa: An emerging market where rooftop solar can drastically improve energy access and reliability, directly addressing the core tenets of SDG 7 in regions with grid constraints.
5. Latin America: Growing adoption in this region supports energy independence and sustainable urban development, contributing to both SDG 7 and SDG 11.

Key Players and Corporate Contributions to the SDGs

Leading companies in the market contribute to the SDGs through their products, services, and corporate strategies.

• Panasonic: The installation of a 5.2 MW rooftop solar system at its Malaysian factory demonstrates a corporate commitment to SDG 7 and SDG 13 by reducing CO₂ emissions by an estimated 3,912 tonnes annually.
• Philips N.V.: By securing a long-term renewable electricity agreement for its facility in China, Philips actively supports the transition to clean energy (SDG 7) and takes tangible climate action (SDG 13), cutting approximately 9,200 tons of CO₂ per year.
• 3M: Through its advanced materials that improve the durability and efficiency of solar panels, 3M contributes to SDG 9 by providing innovative solutions for sustainable infrastructure.

Analysis of Sustainable Development Goals in the Rooftop Solar Photovoltaic Market

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on the Rooftop Solar Photovoltaic Market highlights issues and developments that are directly connected to several Sustainable Development Goals (SDGs). The analysis identifies the following relevant SDGs:

1. SDG 7: Affordable and Clean Energy
   • The entire article focuses on solar photovoltaic technology, a key source of clean and renewable energy. It discusses market growth, technological advancements, and the increasing adoption of solar power for residential, commercial, and industrial use, which directly contributes to ensuring access to affordable, reliable, sustainable, and modern energy for all.
2. SDG 9: Industry, Innovation, and Infrastructure
   • The article details significant innovation and investment in solar technology, such as advancements in thin-film panels and crystalline silicon efficiency. It mentions specific funding for manufacturing and technology development (e.g., “$325 million in CHIPS Act funding for a polysilicon chip plant,” “$10 million grant for advanced solar cell manufacturing”). This aligns with building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation. The installation of rooftop solar systems represents an upgrade to energy infrastructure.
3. SDG 11: Sustainable Cities and Communities
   • Rooftop solar installations are primarily an urban phenomenon, installed on “homes, offices, factories, and public buildings.” The article notes that the residential sector is the largest application (48.8% share) and that Asia Pacific’s dominance is supported by “rapid urbanisation, dense residential housing.” By providing decentralized, clean energy, rooftop solar helps make cities and human settlements more inclusive, safe, resilient, and sustainable.
4. SDG 12: Responsible Consumption and Production
   • The article describes a shift towards sustainable energy consumption. Rooftop solar allows consumers to “produce electricity where it is used,” promoting energy independence and efficient use of resources like “otherwise unused roof space.” This move away from reliance on centralized, often fossil-fuel-based grid power supports the goal of ensuring sustainable consumption and production patterns.
5. SDG 13: Climate Action
   • A direct benefit of adopting solar energy, highlighted in the article, is the reduction of carbon emissions. The “Recent Developments” section provides concrete examples, such as Panasonic’s installation reducing “CO₂ emissions by roughly 3,912 tonnes annually” and Philips’ agreement cutting “around 9,200 tons of CO₂ annually.” These actions are urgent measures to combat climate change and its impacts.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, the following specific SDG targets can be identified:

1. Under SDG 7 (Affordable and Clean Energy):
   • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article’s core subject—the significant growth of the global rooftop solar market from “USD 56.8 billion in 2024” to a projected “USD 121.5 billion by 2034″—directly reflects an increasing share of renewable energy.
   • Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology. The article explicitly mentions numerous investments and funding rounds, such as “£1.3 million secured by OPV thin-film start-up,” “$10 million investment to enhance battery efficiency,” and “$40 million in U.S. Department of Energy funding to boost the solar supply chain,” which exemplify the promotion of investment in clean energy technology.
2. Under SDG 9 (Industry, Innovation, and Infrastructure):
   • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies. The example of Panasonic installing a “rooftop-based solar PV and energy generation system at its air-conditioner factory in Malaysia” is a direct instance of an industry retrofitting its infrastructure to adopt clean technology and improve sustainability.
3. Under SDG 11 (Sustainable Cities and Communities):
   • Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities. The adoption of rooftop solar in residential (48.8% market share) and commercial buildings within urban centers directly contributes to this target by reducing reliance on polluting energy sources. The quantified CO₂ reductions mentioned for facilities in Malaysia and China are examples of mitigating the environmental impact of urban industrial activities.
4. Under SDG 12 (Responsible Consumption and Production):
   • Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources. The article describes how rooftop solar systems “use otherwise unused roof space” to harness sunlight, a renewable natural resource. This represents a more efficient and sustainable pattern of resource management compared to land-intensive energy projects or finite fossil fuels.
5. Under SDG 13 (Climate Action):
   • Target 13.2: Integrate climate change measures into national policies, strategies and planning. The article mentions that market growth is driven by “strong policy support for clean energy adoption.” This implies that climate change considerations are being integrated into energy policies, which in turn drives the market. The specific CO₂ reduction figures are direct outcomes of such measures.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article contains several quantitative and qualitative indicators that can be used to measure progress towards the identified targets:

1. For Target 7.2 (Increase renewable energy share):
   • Market Size and Growth: The projected growth of the market from “USD 56.8 billion in 2024” to “USD 121.5 billion by 2034” at a “CAGR of 7.9%” is a direct financial indicator of the increasing adoption of solar energy.
   • Renewable Energy Generation: Specific figures like Panasonic’s system generating “5,900 MWh per year” and Philips securing “16 GWh per year” of renewable electricity are direct measures of energy production.
2. For Target 7.a (Promote investment in clean energy):
   • Financial Flows: The article lists specific investments that serve as indicators of financial support for clean energy technology, including “£1.3 million,” “€3.5 million,” “$10 million,” “$24 million,” “$325 million,” and “$40 million” for various solar-related innovations and supply chain enhancements.
3. For Target 9.4 (Upgrade infrastructure and retrofit industries):
   • CO₂ Emission Reductions from Industry: The quantified reduction in emissions from industrial sites, such as “3,912 tonnes annually” for Panasonic and “9,200 tons of CO₂ annually” for Philips, serves as a key performance indicator for sustainable industrial retrofitting.
4. For Target 11.6 (Reduce environmental impact of cities):
   • Application Market Share: The statistic that “Residential applications dominated the Rooftop Solar Photovoltaic Market, securing a notable 48.8% share” indicates the scale of adoption at the household level in urban and suburban areas, contributing to cleaner cities.
5. For Target 13.2 (Integrate climate change measures):
   • CO₂ Emission Reductions: The same figures of “3,912 tonnes” and “9,200 tons” of annual CO₂ reduction are direct indicators of the effectiveness of climate action measures being implemented by corporations, often driven by policy.
   • Policy Support: The mention of “strong policy support for clean energy adoption” is a qualitative indicator that climate change measures are being integrated into planning.

4. Summary Table of SDGs, Targets, and Indicators

Source: market.us