North America Photovoltaic Market Size, Share, Trends and Forecasts 2031

Key Findings

• The North America Photovoltaic Market is expanding rapidly due to increased investment in renewable energy infrastructure and sustainability targets.
• Declining module prices and improvements in conversion efficiency are enhancing large-scale solar adoption in North America.
• Government incentives, feed-in tariffs, and renewable energy mandates are driving strong market penetration.
• Integration of photovoltaic (PV) systems with energy storage solutions is improving reliability and grid stability.
• Technological advancements such as bifacial panels and perovskite cells are boosting energy yield and efficiency.
• Growing industrial and commercial rooftop installations are accelerating distributed generation capacity.
• Supply chain diversification and domestic manufacturing initiatives are strengthening local PV production ecosystems.
• Strategic collaborations between utilities, EPC firms, and module manufacturers are shaping the competitive landscape in North America.

North America Photovoltaic Market Size and Forecast

The North America Photovoltaic Market is projected to grow from USD 84.5 billion in 2025 to USD 215.7 billion by 2031, at a CAGR of 16.7% during the forecast period. The rise in renewable energy targets and global decarbonization initiatives is driving large-scale solar deployment across residential, commercial, and utility sectors. In North America, solar energy has emerged as a key contributor to energy transition strategies, supported by favorable policies and grid modernization programs. The declining cost of PV modules, improvements in efficiency, and expansion of smart grid infrastructure are boosting market growth. With increasing urbanization and electrification, demand for sustainable and decentralized power solutions will continue to propel the photovoltaic market forward.

Introduction

Photovoltaic (PV) technology converts sunlight directly into electricity through semiconducting materials that exhibit the photovoltaic effect. In North America, the PV market has evolved from small-scale off-grid systems to large utility-scale solar farms and integrated distributed energy systems. The growing emphasis on renewable energy independence, coupled with technological progress in cell design and materials, is making solar energy more affordable and efficient. The market’s expansion is supported by climate action commitments and increased investments in clean energy. Photovoltaic systems are now being integrated into residential rooftops, commercial buildings, transportation networks, and industrial facilities, positioning North America as a critical hub for sustainable power generation.

Future Outlook

By 2031, the North America Photovoltaic Market is expected to experience exponential growth as solar becomes one of the most cost-effective power sources. Innovations such as tandem cells, transparent solar panels, and floating solar farms will redefine deployment flexibility. The integration of PV with energy storage, microgrids, and electric mobility infrastructure will further enhance energy autonomy. Moreover, government-driven carbon neutrality goals will accelerate investments in utility-scale solar parks and hybrid renewable systems. Domestic module manufacturing and recycling initiatives will support circular economy models. North America is projected to emerge as a global leader in solar innovation, with increased emphasis on efficiency optimization, lifecycle sustainability, and smart grid integration.

North America Photovoltaic Market Trends

• Advancements in Cell and Module Efficiency
  Continuous innovation in photovoltaic cell architecture is significantly improving energy conversion rates in North America. Technologies such as passivated emitter rear cells (PERC), heterojunction (HJT), and perovskite tandem cells are offering higher efficiency and longer operational lifespans. These advancements reduce the levelized cost of electricity (LCOE), making solar power more competitive against conventional energy sources. Manufacturers are increasingly investing in next-generation materials and anti-reflective coatings to optimize performance in diverse climates. This trend is expected to drive greater scalability and market competitiveness across residential, commercial, and utility applications.

• Expansion of Distributed Solar Installations
  The growing adoption of rooftop and small-scale photovoltaic systems in North America is transforming the power generation landscape. Distributed solar installations reduce transmission losses, promote grid independence, and provide cost-effective electricity access. With the introduction of net metering and flexible grid interconnection policies, consumers are increasingly turning into prosumers. The trend toward decentralized energy systems aligns with national sustainability goals and ensures better energy resilience. These installations are especially prominent in urban and peri-urban regions, where space utilization efficiency is paramount.

• Integration of Energy Storage Solutions
  Energy storage is emerging as a critical complement to photovoltaic systems in North America, enabling round-the-clock energy supply. Lithium-ion and emerging solid-state batteries are being integrated with PV arrays to stabilize fluctuating generation patterns. This integration enhances energy security, grid reliability, and demand-side management. As energy storage costs continue to decline, hybrid solar-plus-storage projects are becoming economically viable. The synergy between storage and PV will redefine renewable energy adoption across industrial, residential, and off-grid segments, ensuring consistent supply and greater energy autonomy.

• Government Incentives and Renewable Energy Policies
  Supportive government initiatives are playing a pivotal role in accelerating solar energy deployment in North America. Policies such as tax credits, subsidies, and renewable purchase obligations (RPOs) are fostering investment in solar infrastructure. National energy plans are prioritizing solar as a key component of sustainable energy transitions. Long-term power purchase agreements (PPAs) and feed-in tariffs further incentivize developers and independent power producers. These frameworks are not only promoting domestic energy security but also creating a favorable environment for foreign direct investment in renewable sectors.

• Emergence of Floating and Building-Integrated Photovoltaics (BIPV)
  Innovative deployment models such as floating solar farms and building-integrated PV systems are gaining traction in North America. Floating installations on reservoirs and water bodies optimize land use while reducing water evaporation and heat losses. BIPV solutions, which integrate solar panels into building façades and windows, are reshaping urban energy design. These systems offer aesthetic and functional benefits, enabling sustainable energy generation within limited spaces. The diversification of installation environments highlights the adaptability of PV technologies in meeting diverse regional and infrastructural needs.

Market Growth Drivers

• Increasing Focus on Decarbonization and Energy Transition
  National and regional commitments to reduce carbon emissions are driving significant investments in photovoltaic infrastructure in North America. Solar energy is viewed as a cornerstone of the renewable energy mix, aligning with net-zero and climate-neutral goals. The scalability, cost efficiency, and environmental benefits of PV make it ideal for large-scale energy transition strategies. Governments, corporations, and consumers alike are accelerating the shift toward clean energy, positioning photovoltaics as a vital enabler of long-term sustainability.

• Declining Costs of Solar Components
  Continuous advancements in manufacturing and economies of scale have significantly lowered the costs of PV modules, inverters, and mounting systems. In North America, the cost per watt of solar installation has dropped substantially, making solar power competitive with fossil fuels. Improved manufacturing efficiency and supply chain localization are further driving affordability. This cost reduction, coupled with performance improvements, is enabling mass adoption across commercial, residential, and utility sectors, fostering inclusive access to solar energy.

• Rising Energy Demand and Electrification Initiatives
  Growing industrialization, population growth, and electrification of rural regions are increasing energy demand in North America. Photovoltaic systems offer a scalable and sustainable solution to meet this rising demand without environmental degradation. Off-grid and microgrid solutions powered by PV are providing electricity access to remote communities. Additionally, the electrification of transport and smart city projects is further amplifying the need for clean energy sources, ensuring that photovoltaics remain at the forefront of energy infrastructure expansion.

• Integration with Smart Grid and IoT Technologies
  The convergence of photovoltaics with smart grid systems and IoT-based monitoring is enhancing efficiency and reliability. In North America, digitalization is enabling real-time energy management, predictive maintenance, and data-driven optimization of PV performance. Smart meters and cloud-based platforms allow operators to balance demand and supply dynamically. This integration supports grid stability and optimizes energy flow, making PV systems more adaptive to fluctuating generation and consumption patterns.

• Investment in Domestic Manufacturing and Supply Chains
  To reduce dependency on imports, governments and private entities in North America are investing heavily in domestic PV component manufacturing. Localized production of wafers, cells, and modules not only strengthens supply resilience but also generates employment and boosts exports. Supportive industrial policies and incentives are catalyzing capacity expansion in solar component manufacturing. This emphasis on self-reliance ensures long-term cost stability and secures the region’s position as a major player in the global photovoltaic supply network.

Challenges in the Market

• Intermittency and Grid Integration Issues
  The variable nature of solar generation poses challenges for grid operators in North America. Fluctuations in sunlight availability can create imbalances between energy supply and demand. Without proper storage or grid balancing mechanisms, this intermittency can lead to inefficiencies and curtailment. Efforts are ongoing to implement advanced forecasting, grid storage, and flexible transmission systems to address these challenges. Successful integration will be essential for ensuring the reliability of large-scale photovoltaic power.

• High Initial Installation and Infrastructure Costs
  Although operational costs of PV systems are low, the initial capital expenditure for installation remains significant in North America. Expenses related to land acquisition, inverters, and grid connectivity can deter smaller investors. Financing constraints and lengthy permitting processes add complexity to project development. Governments and financial institutions are introducing green bonds, leasing models, and tax incentives to overcome these barriers. However, access to affordable financing remains critical for sustaining market momentum.

• Supply Chain Dependencies and Material Shortages
  The photovoltaic industry in North America relies heavily on critical raw materials such as silicon, silver, and rare earth elements. Global supply disruptions, trade restrictions, or geopolitical tensions can affect production timelines and costs. Fluctuating material prices also impact profitability. To mitigate these risks, regional manufacturers are exploring recycling initiatives, alternative materials, and local sourcing strategies. Diversified supply chains will be key to ensuring production stability and cost efficiency.

• Environmental and End-of-Life Management Concerns
  Despite being a clean energy source, PV systems raise environmental concerns at the end of their lifecycle. Disposal and recycling of panels containing heavy metals like lead and cadmium remain a challenge in North America. The development of sustainable recycling processes and eco-design principles is gaining importance. Establishing a robust circular economy framework for solar components will be crucial to maintaining the industry’s environmental credibility.

• Land Availability and Regulatory Complexity
  Large-scale photovoltaic installations require significant land areas, which can create conflicts with agriculture and conservation priorities in North America. Additionally, varying regional regulations and lengthy approval processes hinder project deployment. Simplifying regulatory frameworks, promoting dual-use land practices, and accelerating permitting will be vital to achieving deployment targets. Governments must balance environmental protection with renewable expansion to ensure sustainable growth.

North America Photovoltaic Market Segmentation

By Technology

• Crystalline Silicon (c-Si)

• Thin Film

• Perovskite Solar Cells

• Concentrated Photovoltaic (CPV)

By Grid Type

• On-Grid

• Off-Grid

By Application

• Residential

• Commercial

• Industrial

• Utility-Scale

By Installation Type

• Rooftop

• Ground-Mounted

• Floating Solar

Leading Key Players

• JinkoSolar Holding Co., Ltd.

• Trina Solar Co., Ltd.

• First Solar, Inc.

• Canadian Solar Inc.

• LONGi Green Energy Technology Co., Ltd.

• Hanwha Q Cells

• JA Solar Technology Co., Ltd.

• SunPower Corporation

• REC Group

• Adani Solar

Recent Developments

• JinkoSolar Holding Co., Ltd. expanded its manufacturing capacity in North America with advanced N-type TOPCon cell production lines.

• First Solar, Inc. launched a new thin-film solar module with higher energy yield for utility-scale projects in North America.

• LONGi Green Energy Technology Co., Ltd. partnered with regional utilities to deploy high-efficiency bifacial panels across large solar parks in North America.

• Canadian Solar Inc. secured a multi-year PPA to supply solar power for industrial and commercial users in North America.

• Hanwha Q Cells introduced perovskite-silicon tandem modules tailored for high-temperature environments in North America.

This Market Report Will Answer the Following Questions

1. What is the projected market size and CAGR of the North America Photovoltaic Market by 2031?

2. Which technologies and segments are driving the photovoltaic market expansion in North America?

3. How are energy storage integration and smart grid systems shaping the future of solar power?

4. What challenges are associated with large-scale solar deployment and lifecycle management?

5. Who are the leading companies and innovators driving technological advancements in North America?