DG Rooftop Solar PV Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Capacity (up to 10 kW, 11 kW – 100 kW, Above 100 kW), By End-User (Residential, Commercial, Industrial), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 6.79 Billion
CAGR (2026-2031)	7.48%
Fastest Growing Segment	Industrial
Largest Market	Asia Pacific
Market Size (2031)	USD 10.47 Billion

Market Overview

The Global DG Rooftop Solar PV Market will grow from USD 6.79 Billion in 2025 to USD 10.47 Billion by 2031 at a 7.48% CAGR. Global Distributed Generation (DG) Rooftop Solar PV comprises decentralized photovoltaic systems installed on residential, commercial, and industrial rooftops to generate electricity directly at the point of consumption. The expansion of this market is primarily driven by escalating utility electricity tariffs and a growing necessity for energy security, which compel consumers to adopt onsite generation for operational cost stabilization. Furthermore, supportive regulatory mechanisms, including net metering and capital subsidies, continue to enhance the financial viability of these installations, thereby accelerating their adoption across diverse building sectors globally.

However, the market faces a significant impediment regarding the technical and regulatory complexities of grid integration. Aging utility infrastructure frequently struggles to manage the bidirectional energy flows associated with high penetrations of decentralized power, leading to potential instability and interconnection delays. According to the International Energy Agency, in 2024, distributed solar PV systems accounted for 43% of the total global installed solar capacity. While this figure highlights the sector's substantial market share, the lack of uniform grid modernization standards remains a critical barrier that could severely restrict further capacity expansion and efficient asset utilization.

Key Market Drivers

The declining Levelized Cost of Energy (LCOE) for photovoltaic systems serves as a primary catalyst for the widespread adoption of distributed generation rooftop solar. As manufacturing efficiencies improve and supply chains stabilize, the economic case for onsite power generation has strengthened, often achieving grid parity in major markets. This reduction in capital and operational expenditures encourages residential and commercial consumers to transition away from traditional utility reliance, as self-consumption becomes financially advantageous. According to the International Renewable Energy Agency, in July 2025, the global weighted average levelized cost of electricity for solar PV stood at USD 0.043 per kilowatt-hour in 2024, maintaining its position as one of the most competitive sources of new power generation. This cost competitiveness effectively lowers the barrier to entry for small-scale installations, fostering a market environment where asset owners can secure long-term energy savings against volatile retail tariffs.

Supportive regulatory frameworks and financial incentives further accelerate market expansion by mitigating upfront investment risks and ensuring revenue stability. Governments worldwide are implementing aggressive mandates, capital subsidies, and favorable billing mechanisms such as net metering to decentralize their energy networks and meet decarbonization targets. For instance, China's robust policy support for decentralized energy has led to substantial capacity additions in the built environment. According to the National Energy Administration of China, in January 2025, the country installed 120 gigawatts of distributed solar capacity in 2024, representing 43% of its total solar additions. Such policy-driven growth underscores the critical role of government intervention in scaling the sector. On a broader scale, these combined drivers have propelled the industry forward; according to SolarPower Europe, in May 2025, global solar installations reached nearly 600 gigawatts in 2024, a 33% increase compared to the previous year.

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Key Market Challenges

The technical and regulatory complexities regarding grid integration constitute a formidable obstacle actively stifling the expansion of the Global DG Rooftop Solar PV Market. As decentralized photovoltaic systems proliferate, they introduce bidirectional electricity flows that aging utility infrastructures were never designed to accommodate. This fundamental technical mismatch creates severe capacity constraints and voltage instability, forcing grid operators to impose strict interconnection limits or moratoriums. Consequently, potential adopters face prolonged wait times and escalating compliance costs, which significantly erodes the financial attractiveness of rooftop projects and deters investment in otherwise viable installations.

This structural incapacity to rapidly assimilate new distributed assets directly dampens market momentum. When utilities cannot guarantee timely interconnection, the pace of deployment naturally decelerates regardless of high consumer demand or available incentives. This adverse impact is clearly reflected in recent industry performance data. According to SolarPower Europe, in 2024, the annual growth rate of the solar market in the European Union fell drastically to 4% compared to 53% in the previous year, a slowdown largely attributed to tightening grid and flexibility bottlenecks. Such data illustrates how infrastructure limitations serve as a hard ceiling on market performance, effectively restricting the sector's ability to scale.

Key Market Trends

The shift toward high-efficiency N-type and bifacial module technologies is reshaping the market as asset owners seek to maximize energy density within limited rooftop space. This transition to advanced architectures like TOPCon and Heterojunction (HJT) offers superior conversion efficiencies, optimizing generation on constrained building envelopes compared to legacy technologies. The rapid industrial pivot toward these next-generation components is evident in recent manufacturing outputs. According to JinkoSolar, March 2025, in the 'Fourth Quarter and Full Year 2024 Financial Results', the company reported that N-type modules accounted for over 87% of its total global shipments in 2024. This adoption underscores a decisive market preference for high-performance assets that ensure maximum power output per installed unit.

Simultaneously, the increasing integration of behind-the-meter battery energy storage systems is driven by the need for resilience and enhanced self-consumption. As net metering incentives diminish and grid outages become more frequent, consumers are aggressively adopting storage to secure energy independence and mitigate utility reliance. This configuration allows system owners to store surplus solar power for use during peak pricing windows, effectively insulating them from rate volatility. The magnitude of this trend is substantial; according to SolarPower Europe, June 2024, in the 'European Market Outlook for Battery Storage 2024-2028', newly installed battery energy storage capacity in Europe grew by 94% in 2023, largely driven by residential adoption. This surge highlights the growing necessity for flexible, onsite energy management solutions.

Segmental Insights

The Industrial segment stands out as the fastest-growing category within the Global DG Rooftop Solar PV Market, primarily due to the significant cost savings associated with large-scale onsite energy generation. Factories and warehouses offer extensive rooftop availability, allowing for high-capacity installations that offset heavy electricity consumption. Furthermore, the accelerating corporate commitment to sustainability and net-zero emissions targets drives widespread adoption among manufacturing entities. Favorable government policies, including tax incentives and net metering schemes, provide additional financial motivation, making rooftop solar an essential strategy for industries aiming to secure energy independence and operational efficiency.

Regional Insights

Asia Pacific maintains a dominant position in the global distributed generation rooftop solar PV market due to rapid urbanization and robust government mandates favoring renewable energy integration. Major economies like China and India drive this growth through extensive infrastructure development and energy decentralization strategies. Specifically, initiatives led by the National Energy Administration in China have significantly expanded distributed solar capacity to meet industrial power demands. Additionally, favorable net metering policies and financial incentives across the region continue to encourage widespread commercial and residential adoption, reinforcing market leadership.

Recent Developments

• In July 2025, global investment firm KKR signed definitive agreements to establish a strategic partnership with Clean Peak Energy to accelerate the growth of a distributed energy platform in Australia. The collaboration involved a significant commitment of A$500 million from funds managed by the firm to support the development of a pipeline of distributed solar, battery storage, and microgrid solutions for the commercial and industrial sectors. Clean Peak Energy, which operated a portfolio of distributed generation assets, aimed to leverage this investment to deliver reliable, low-carbon energy solutions to corporate clients. The partnership underscored the increasing investor interest in scalable renewable energy assets that serve the decentralized power generation market.
• In December 2024, Tata Power Renewable Energy Limited announced a strategic collaboration with Canara Bank to promote the adoption of rooftop solar systems across India. The partnership focused on providing affordable financing options to residential consumers under the PM Surya Ghar Scheme. Through this initiative, the company aimed to simplify access to clean energy by offering loans with attractive interest rates and flexible tenures for solar installations. The agreement highlighted the commitment of both organizations to foster a sustainable energy ecosystem and support the country's renewable energy goals by addressing financial barriers for households seeking to install rooftop photovoltaic systems.
• In October 2024, JinkoSolar announced the launch of its Tiger Neo 3.0 series of solar modules, which included the Neo DG product specifically designed for the distributed generation market. The new product line featured N-type TOPCon technology and delivered a power output of up to 495 watts for residential applications, setting a new standard for efficiency in the sector. The company highlighted that these modules offered enhanced performance under low-light conditions and improved bifaciality. This product introduction was part of the manufacturer's broader strategy to provide high-efficiency photovoltaic solutions that maximize energy yield and offer superior value for residential and commercial rooftop installations globally.
• In July 2024, TotalEnergies announced that it had surpassed 200 megawatts-peak of operating solar assets for business-to-business customers in the Asia-Pacific region. This milestone reflected the company's rapid expansion in the distributed generation market, where it provided integrated solar solutions to commercial and industrial clients across nine countries, including Singapore, India, and Vietnam. The company noted that its portfolio included rooftop, carport, and ground-mounted solar systems designed to help businesses reduce their carbon footprint and electricity costs. This achievement underscored the energy major's commitment to growing its decentralized power generation capacity and supporting the energy transition for corporate partners in the region.

Key Market Players

• SunPower Corporation
• Canadian Solar Inc.
• JinkoSolar Holding Co., Ltd.
• TrinaSolar Co., Ltd.
• First Solar, Inc.
• Hanwha Corporation
• JA Solar Technology Co., Ltd.
• Yingli Energy Development Company Limited
• Risen Energy Co., Ltd.
• LONGi Green Energy Technology Co., Ltd.

By Capacity	By End-User	By Region
up to 10 kW 11 kW - 100 kW Above 100 kW	Residential Commercial Industrial	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global DG Rooftop Solar PV Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• DG Rooftop Solar PV Market, By Capacity:

• up to 10 kW
• 11 kW - 100 kW
• Above 100 kW

• DG Rooftop Solar PV Market, By End-User:

• Residential
• Commercial
• Industrial

• DG Rooftop Solar PV Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE