Distributed Solar Market Size To Reach $193.83 Billion By 2033

Distributed Solar Market Growth & Trends

The global distributed solar market size is projected to reach USD 193.83 billion by 2033, growing at a CAGR of 5.21% during the forecast period, driven by increasing adoption of decentralized renewable energy solutions. Rising electricity prices, a growing emphasis on energy security, and robust policy frameworks that promote decarbonization support overall market growth. Distributed solar systems, including rooftop PV, community solar, and solar-plus-storage solutions, enable households, businesses, and communities to generate clean energy locally, reduce dependence on centralized grids, and lower carbon emissions.

Governments, utilities, and technology providers are investing heavily in smart grids, digital energy management platforms, and peer-to-peer energy trading pilots, facilitating greater integration of distributed energy resources. Strategic initiatives such as the European Union’s Renewable Energy Directive (RED III), rooftop solar mandates, feed-in tariffs, self-consumption incentives, and tax rebates are accelerating the deployment of residential and commercial solar solutions, particularly in Germany, the Netherlands, Italy, and Spain.

Technological advancements in energy storage, grid integration, and digital monitoring tools are improving system efficiency, reliability, and affordability, further driving adoption. As global economies move toward their 2030 and 2050 climate targets, distributed solar is emerging as a key enabler of resilient, decentralized, and low-carbon energy systems.

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Distributed Solar Market Report Highlights

• By product type, the monocrystalline (Mono-Si) segment accounted for the largest share at approximately 62% in 2024, supported by high efficiency, strong performance in limited rooftop space, and longer operational lifespan compared to competing PV technologies. Ongoing improvements, including PERC, TOPCon, and heterojunction architectures, continue to enhance reliability and energy yield. Economies of scale in Asia Pacific manufacturing hubs are driving down production costs, strengthening global adoption.

• By end user, the residential segment held the largest share at about 35% in 2024. Adoption is driven by rising demand for energy independence, declining installation costs, and supportive policies such as net metering, tax credits, and rebates. Growing access to financing options, including loans, leases, and zero-down payment schemes, has widened consumer adoption. Integration with home energy storage and smart energy management tools further enhances value for homeowners.

Distributed Solar Market Segmentation

Grand View Research has segmented the global distributed solar market report on the basis of product type, end user, and region.

Distributed Solar Product Type Outlook (Revenue, USD Million, 2021 - 2033)

• Monocrystalline (Mono-Si)

• Polycrystalline (p-Si)

• Amorphous Silicon (a-Si)

• Concentrated PV Cell (CPV)

Distributed Solar End User Outlook (Revenue, USD Million, 2021 - 2033)

• Residential

• Commercial

• Industrial

• Utility

Distributed Solar Regional Outlook (Revenue, USD Million, 2021 - 2033)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

• Latin America

  • Brazil

• Middle East & Africa

  • Saudi Arabia

  • UAE 

List of Key Players in the Distributed Solar Market

• First Solar

• JinkoSolar

• Trina Solar

• Canadian Solar

• LONGi Green Energy

• JA Solar

• Hanwha Q CELLS

• SunPower Corporation

• Enphase Energy

• SMA Solar Technology