North America On Grid Solar PV Market Size - By Application (Residential, Commercial & Industrial, Utility), Country Outlook & Forecast, 2024 – 2032

North America On Grid Solar PV Market Size - By Application (Residential, Commercial & Industrial, Utility), Country Outlook & Forecast, 2024 – 2032

North America On-Grid Solar PV Market is slated to record 6.1% CAGR during 2024 to 2032, propelled by a surge in government policies and incentives. For instance, as per the U.S. Department of Energy, the Federal Investment Tax Credit (ITC) offers a 26% tax credit for solar systems installed on residential and commercial properties, significantly reducing upfront costs. Moreover, the escalating focus on curbing carbon emissions and attaining sustainability targets has catalyzed investments in renewable energy.

Furthermore, technological strides and declining costs of solar photovoltaic systems are positively shaping the market's trajectory. Breakthroughs in solar panel efficiency, energy storage, and grid integration have not only boosted the performance and reliability of on-grid solar systems but have also broadened their consumer appeal. According to the National Renewable Energy Laboratory (NREL), the cost of solar PV modules has dropped by approximately 90% over the past decade. Additionally, as businesses and households grasp the long-term economic advantages of solar energy, especially amidst rising electricity costs, they are increasingly turning to on-grid solar PV systems as a pragmatic and sustainable energy alternative.

North America on-grid solar PV industry is classified based on application and nation.

The commercial and industrial application segment is poised to contribute significantly to market value by 2032, due to increased adoption and deployment of solar technologies. Businesses are recognizing the financial benefits of solar energy, including substantial reductions in energy costs and enhanced energy security. The pressure on businesses to meet sustainability targets and reduce their carbon footprints, is favoring the shift toward solar PV as CSR goals. Additionally, the availability of attractive financing options and power purchase agreements (PPAs) further facilitates the integration of solar PV systems within commercial and industrial sectors.

Canada on-grid solar PV industry size will expand at a notable pace through 2032, driven by a combination of supportive government policies, technological advancements, and increasing environmental awareness. Canadian federal and provincial governments offer various incentives, subsidies, and rebate programs to encourage solar energy adoption, making it a financially viable option for both residential and commercial users. Additionally, innovations in solar technology and decreasing costs are enhancing the efficiency and affordability of solar PV systems. Public and corporate emphasis on reducing GHG emissions and transitioning to cleaner energy sources is also propelling the market forward.

Meanwhile, the on-grid solar PV market in Mexico is experiencing accelerated growth due to significant solar resource availability, and declining technology costs. The Mexican government has implemented supportive policies and incentives aimed at boosting renewable energy adoption, such as tax benefits and streamlined permitting processes. Moreover, Mexico's abundant solar irradiance provides a strong natural advantage, making solar PV systems highly efficient and economically viable. The decreasing costs of solar panels and related technologies further enhance the attractiveness of on-grid solar solutions, favoring the regional market growth.