US Solar Roofing Market is expected to reach US$ 829.95 Million by 2031

Government Initiatives and Benefits of Solar Roofing Bolsters US Solar Roofing Market Growth

According to our latest study on "US Solar Roofing Market Analysis to 2031 – Country Analysis – by Roof Type, Technology, Grid Type, and Application," the market was valued at US$ 458.19 million in 2023 and is projected to reach US$ 829.95 million by 2031; it is anticipated to record a CAGR of 7.7% from 2023 to 2031. The report covers the US solar roofing market trends and their foreseeable impact during the forecast period.

The Inflation Reduction Act (IRA) in August 2022 became one of the major policy changes that sparked a wave of new solar investments and brought the market for solar energy close to meeting the ambitious clean energy goals of the energy & power sector and the federal government. Recent improvements in solar panel design, energy yield, solar cell efficiency, and grid integration result in the greater potential for solar roofing on a national scale. Key benefits associated with solar installations on roofs include household savings, economic opportunity, grid resilience and reliability, owning power production, and others. 

US Solar Roofing Market Share — by Country, 2023

Source: The Insight Partners Analysis

Replacing a roof and installing a solar system can save homeowners an average of US$ 4,000. Solar roofing system installations open the door for homeowners and businesses to receive federal solar energy tax credits. Even with solar tax credits, low-income and disadvantaged communities face financial barriers to accessing solar roofing systems. Hence, programs such as Solar for All, which provides grants to expand access to solar energy to millions of low-income households, have gained significant importance. A community solar system can help households and businesses that do not own a roof of their own or do not have roof space suitable for solar panels access suitable roof space through a shared arrangement. Thus, government initiatives to promote the adoption of solar energy in the US and the benefits of solar roofing bolster the US solar roofing market size.

The US solar roofing market ecosystem stakeholders include component manufacturers, solar roofing equipment manufacturers, and end users. Component manufacturers play a crucial role in the solar roofing market's ecosystem by providing the essential materials, equipment, and technologies required to design, manufacture, and install solar roofing systems. These suppliers contribute to the solar roofing industry's overall growth, efficiency, and performance. A raw material supplier (provider) ships natural resources to producers and solar equipment manufacturers. Solar equipment manufacturers convert raw materials and natural resources into valuable goods.

The scope of the US solar roofing market report includes roof type, technology, application, and grid type. Based on roof type, the market is bifurcated into new installation and reroofing. In terms of technology, the US solar roofing market is segmented into thin film and crystalline silicon. The market, in terms of application, is segmented into residential, commercial, and industrial. Based on grid type, the market is bifurcated into on-grid and off-grid. Among the significant roof types, the new installation segment held the larger US solar roofing market share in 2023, and it is likely to retain its dominance during the forecast period. The market growth for this segment is attributed to the surging demand for energy consumption and rising electricity costs across the US.

The new installation segment covers the installation of new solar roofing across different construction projects and existing buildings as well. The overall economic growth across the US slowed down in 2023, which was close to the recession. Moreover, a shortage of skilled labor and a rapid rise in the prices of raw materials were a few of the major challenges for the construction sector across the US in 2023. New construction for single-family homes witnessed a decline of ~6% in 2023 compared to 2022, as the number of units dropped to nearly 891,000 across the US, according to the Dodge Construction Network. Moreover, the construction of multifamily apartments across the US in 2023 dropped by ~9% compared to that in 2022, as the number of units reduced to nearly 723,000. In addition, the construction of commercial buildings witnessed a total decline of approximately 3% in 2023. Nonetheless, the demand for solar roofing rose despite the declining construction sector owing to the rising focus on the need to reduce energy consumption and cope with increasing energy costs for the commercial, residential, and industrial sectors. According to the Solar Energy Industries Association (SEIA), the total solar installations across the US amounted to ~185,000 gigawatts-direct current (GWdc) in 2023, recording an increase from 145,000 GWdc in 2022. Thus, an upsurge in solar capacity installations fueled the US solar roofing market growth in 2023.

The US solar industry installed 11.8 GWdc of capacity in the first quarter of 2024, which proved to be the second-best quarter for the industry after the last quarter of 2023. However, residential solar installations declined by 25% year-over-year due to challenges such as high interest rates and the transition to net billing in California, as well as in some other states in the US. However, commercial and industrial solar roofing installations witnessed healthy growth in 2023, which fueled the US solar roofing market size with the soaring demand for crystalline silicon solar cell installations across the US.

Tesla Inc, Solarstone OÜ, CertainTeed LLC, GAF Energy, SunTegra Solar, Sunpower Corporation, ECO Roof and Solar, Western Roofing Systems, American Solar & Roofing, and JinkoSolar Holding Co Ltd are among the key players profiled in the US solar roofing market report. Companies in the US solar roofing market mainly focus on product and service enhancements by integrating advanced features and technologies into their offerings.

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