Table of Contents
Overview
New York, NY – August 14, 2025 – The Global Grid-Connected PV Systems Market is projected to reach USD 210.0 billion by 2034, up from USD 59.2 billion in 2024, with a CAGR of 13.5% from 2025 to 2034. In 2024, the Asia-Pacific region led the market, holding a 46.7% share and generating USD 27.6 billion in revenue.
In India, grid-connected photovoltaic (PV) systems are pivotal to the nation’s renewable energy goals, supporting sustainable development and energy security. As of January 31, 2025, India’s installed solar capacity is 100.33 GW, with 84.10 GW under implementation and 47.49 GW in the tendering phase, a significant rise from 2.82 GW.
Key drivers of this growth include India’s abundant sunlight, falling solar panel costs, and robust government policies. The country’s favorable climate enhances solar power efficiency while declining technology costs have broadened access. Government initiatives, such as the PM Surya Ghar Muft Bijli Yojana launched in 2024, aim to install rooftop solar systems on 10 million households, each up to 3 kW, providing free electricity. India’s target of 500 GW of non-fossil fuel energy highlights solar’s critical role.
Supportive policies have fueled rapid expansion. The Jawaharlal Nehru National Solar Mission, launched in 2010, initially targeted 20 GW by 2022, later revised to 100 GW in 2015. Utility-scale solar capacity grew from 2,650 MW in 2014 to 12,288.83 MW by 2017 and 21,651.48 MW by 2018, surpassing targets early. The rooftop solar scheme aimed for 4,800 MW in 2016–17, contributing to goals of 40 GW rooftop and 60 GW large-scale solar.
Additional schemes bolster adoption. The PM Surya Ghar: Muft Bijli Yojana, launched in February 2024, targets 10 million households with subsidies up to ₹75,021 crore. The PM-KUSUM scheme supports farmers with solar pumps and grid-connected systems. State policies, like Delhi’s solar incentives, further drive rooftop installations.
Key Takeaways
- The Grid Connected PV Systems Market size is expected to be worth around USD 210.0 Billion by 2034, from USD 59.2 Billion in 2024, growing at a CAGR of 13.5%.
- Inverters held a dominant market position, capturing more than a 38.2% share in the Grid Connected PV Systems market.
- Crystalline Silicon held a dominant market position, capturing more than 78.4% share in the Grid Connected PV Systems market.
- Centralized held a dominant market position, capturing more than a 66.3% share in the Grid Connected PV Systems market.
- Utility held a dominant market position, capturing more than a 47.7% share in the Grid Connected PV Systems market.
- Asia-Pacific (APAC) emerged as the dominant region in the global Grid Connected PV Systems market, capturing a significant share of 46.7%, valued at approximately USD 27.6 billion.
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Report Scope
| Market Value (2024) | USD 59.2 Billion |
| Forecast Revenue (2034) | USD 210.0 Billion |
| CAGR (2025-2034) | 13.5% |
| Segments Covered | By Components (Power Conditioning Unit, Grid Connection Equipment, Inverters, Others), By Technology (Thin Film, Crystalline Silicon, Others), By Grid Type (Centralized, Decentralized), By Application (Utility, Residential, Commercial, Industrial) |
| Competitive Landscape | Industrial Sunpower Corporation, Zytech Solar, KYOCERA Corporation, Canadian Solar Inc., Huawei Technologies, JinkoSolar Holding Co., Ltd, Trina Solar, Panasonic Corporation, Suntech Power Holding Co., Ltd., Kaneka Corporation, TRIENERGY Schweiz AG |
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Key Market Segments
By Component Analysis
Inverters lead with a 38.2% share due to their essential role in energy conversion. In 2024, inverters captured over 38.2% of the Grid-Connected PV Systems market, driven by their critical function of converting solar panel DC output into usable AC power for residential and utility-scale applications. The surge in solar PV installations across urban and rural regions has heightened demand for high-efficiency inverters.
By 2025, this segment is poised for continued growth, fueled by advancements in smart inverter technologies that enhance grid stability, enable remote monitoring, and meet updated grid standards. Government initiatives promoting rooftop and utility-scale solar further solidify inverters’ dominance in the component market.
By Technology Analysis
Crystalline Silicon commands a 78.4% share due to its superior efficiency and durability. In 2024, Crystalline Silicon dominated the Grid-Connected PV Systems market with a 78.4% share, attributed to its high performance, long lifespan, and better sunlight-to-electricity conversion compared to other technologies.
Both monocrystalline and polycrystalline panels are widely adopted in residential, commercial, and utility-scale projects due to their reliability and declining costs. By 2025, this segment is expected to maintain its lead, supported by advancements in cell design, higher module efficiency, and widespread adoption in government and private solar initiatives, reinforcing its central role in the global solar transition.
By Grid Type Analysis
Centralized Grid holds a 66.3% share, driven by large-scale utility solar projects. In 2024, centralized systems accounted for over 66.3% of the Grid-Connected PV Systems market, propelled by the rapid expansion of utility-scale solar farms feeding electricity into central grids. These systems leverage economies of scale, making them cost-effective for meeting renewable energy goals.
Typically deployed in open areas with high-capacity PV modules and centralized inverters, they ensure efficient power management. By 2025, this segment is expected to maintain its dominance, supported by investments in solar parks, supportive government policies, and enhanced grid infrastructure for large-scale renewable integration.
By Application Analysis
The Utility segment leads with a 47.7% share, powering national grids through large solar farms. In 2024, the Utility segment held over 47.7% of the Grid-Connected PV Systems market, driven by the growing number of high-capacity solar power plants addressing clean energy demand.
These projects, supported by favorable policies and long-term power purchase agreements, are vital for energy security and climate objectives. By 2025, the segment is expected to retain its lead, bolstered by expanding project pipelines, improved grid infrastructure, and technological advancements enhancing the efficiency of large-scale solar farms.
Regional Analysis
In 2024, the Asia-Pacific (APAC) region led the global Grid-Connected PV Systems market with a 46.7% share, valued at USD 27.6 billion. This dominance stems from robust policy support, rapid urbanization, and a focus on renewable energy in countries like China, India, Japan, South Korea, and Australia. China, accounting for over 50% of global solar PV installations, added 216.9 GW of new solar capacity in 2024, driven by decarbonization efforts and advanced transmission networks.
India, with 116.25 GW of installed solar capacity by June 2025 (89 GW from ground-mounted systems), continues its rapid expansion under initiatives like the National Solar Mission and PM Surya Ghar Muft Bijli Yojana. Japan and South Korea further contribute through grid modernization and subsidies for rooftop solar, solidifying APAC’s leadership in the global solar market.
Top Use Cases
- Residential Rooftop Solar: Grid-connected PV systems on home rooftops generate clean electricity, reducing utility bills. Excess power is fed into the grid, earning credits or payments. These systems are easy to install, supported by government subsidies, and ideal for urban households aiming for energy savings and sustainability.
- Utility-Scale Solar Farms: Large solar farms connect to the grid to supply electricity to entire communities. They use high-capacity panels and inverters for efficient power generation. These projects meet renewable energy targets, benefit from economies of scale, and support national grids with clean, reliable power.
- Commercial Solar Installations: Businesses install grid-connected PV systems on office buildings or warehouses to cut energy costs. These systems power operations and feed surplus energy to the grid. They enhance corporate sustainability goals, reduce operational expenses, and attract eco-conscious customers with green credentials.
- Agricultural Solar Integration: Farmers use grid-connected PV systems to power irrigation pumps and farm equipment. Under schemes like PM-KUSUM, excess energy is sold to the grid, generating income. These systems promote sustainable farming, reduce reliance on diesel, and support rural energy security.
- Community Solar Projects: Grid-connected PV systems enable shared solar projects for communities without individual rooftop access. Residents subscribe to a local solar farm, receiving credits on their bills for generated power. This model promotes equitable access to clean energy and fosters community-driven sustainability.
Recent Developments
1. Industrial SunPower Corporation
Industrial SunPower (a subsidiary of TotalEnergies) has expanded its U.S. commercial and industrial (C&I) solar portfolio with new grid-connected projects in Texas. The company focuses on hybrid solar-storage systems to enhance grid reliability. Recent deployments include a solar farm integrated with battery storage, supporting renewable energy penetration in ERCOT markets.
2. Zytech Solar
Zytech Solar has introduced advanced grid-tied inverters with smart monitoring for residential and commercial PV systems. Their latest systems feature AI-driven energy management, optimizing self-consumption and grid feedback. Zytech also partnered with European utilities to deploy large-scale PV plants with enhanced grid stability features.
3. KYOCERA Corporation
Kyocera launched high-efficiency modules with improved grid compatibility for large-scale PV plants. Their new panels, combined with hybrid inverters, support dynamic grid response, complying with Japan’s updated feed-in-tariff (FIT) regulations. Kyocera also integrated blockchain for peer-to-peer solar trading in grid-connected communities.
4. Canadian Solar Inc.
Canadian Solar unveiled its EP Cube residential storage system, enabling seamless grid interaction with PV systems. The company also secured contracts for utility-scale PV projects in the U.S. and Brazil, featuring advanced grid-forming inverters for better voltage regulation.
5. Huawei Technologies
Huawei introduced its FusionSolar 8.0 solution, integrating AI-powered grid adaptation for large PV plants. Their smart string inverters now support virtual synchronous generator (VSG) technology, enhancing grid inertia in renewable-heavy networks. Huawei also expanded partnerships in Europe for smart PV-grid integration.
Conclusion
Grid-connected PV systems are transforming the global energy landscape by providing clean, scalable, and cost-effective power solutions. With declining solar panel costs, supportive policies, and technological advancements, these systems are driving residential, commercial, and utility-scale adoption. Their ability to integrate with existing grids ensures energy reliability and sustainability, positioning them as a cornerstone of the renewable energy market.
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