Europe Residential Solar PV Panels Market Worth $62.33 Billion By 2030

Europe Residential Solar PV Panels Market Growth & Trends

The Europe residential solar PV panels market size is expected to reach USD 62.33 billion by 2030, according to a new report by Grand View Research, Inc. The market is anticipated to expand at a CAGR of 7.6% from 2022 to 2030. Rising concerns over carbon gas emissions caused by power generation and the transition from nonrenewable energy to renewable energy are expected to result in a surge in the demand for residential solar energy and panels in Europe over the forecast period.

According to the European Commission, the price of solar PV panels decreased by 75% from 2009 to 2019 while the market demand grew. The cost of solar PV modules fell from USD 2.4 per watt to USD 0.4 per watt. The prices are projected to further decline during the forecast period. The demand for solar PV panels for residential use has been increasing owing to the rising costs of oil and gas and decreasing costs of solar PV panels, making them attractive to homeowners.

The growth of the thin film technology segment of the market can be attributed to the increased usage in commercial and utility-scale projects as these lightweight panels have reduced installation costs. The efficiency of thin-film modules is less compared to crystalline solar panels so the panels are installed in homes where large rooftops are available and where economies of scale can be achieved.

The on-grid segment dominated the market due to low operating costs as the excess electricity generated by them is transmitted to grids. The solar power generation systems being connected to the grid can transfer excess energy to the grid and do not require the installation of battery storage solutions in the house. On-grid solar PV panel installation is used in the residential sector as the government incentive schemes for solar PV installations require them to be connected to the grid. These reasons are expected to drive the growth of the market over the forecast period.

The government of France has implemented various incentive schemes to promote the use of solar PV panels for residential use as a part of its energy transition process from fossil fuels. The country provides preferential loans to homeowners who want to install solar PV panel systems in their houses.

The U.K. government has set a net-zero electricity grid target by 2035 and plans to stop using fossil fuels for energy generation. The country has been issuing favorable policies to achieve this target. In January 2022, the government of the U.K. reduced the tax on solar PV panels and other renewable power generation products to promote the adoption of solar PV panels for residential applications. The value-added tax was reduced by 5% for the installation of residential solar PV panel systems.

The global spread of the COVID-19 disrupted supply chains and sharply curtailed demand for commodities worldwide. The restrictions imposed on the supply and transportation owing to slowing down or halting of operations of factories due to partial or complete lockdowns in different countries to contain the spread of coronavirus negatively impacted the growth of the Europe residential solar PV panels industry.

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Europe Residential Solar PV Panels Market Report

Europe Residential Solar PV Panels Market Report Highlights

• In 2021, the thin film technology segment held the largest revenue share of 46.27% in 2021. The dominance can be attributed due to its narrow design, strong durability, and manufacturing from flexible & lightweight materials. Thin-film solar PV panels find major application in commercial and utility-scale projects as these lightweight panels have reduced installation costs
• The on-grid type segment accounted for a revenue share of 96.96% in 2021. The dominant position of the segment can be attributed to the low operating cost of the on-grid system and grid-connected PV systems being able to transfer energy through the grid coupled with their non-complexity
• The U.K. held the largest revenue share of 17.17% in 2021. Factors including reducing dependence on oil and gas for energy production and promotion of small-scale solar PV panel installation for self-consumption for end users are projected to drive the adoption of the solar PV panels for residential applications over the forecast period