Distributed Solar Power Generation Market Report 2026

The distributed solar power generation market size has grown strongly in recent years. It will grow from $150.24 billion in 2025 to $159.66 billion in 2026 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to declining cost of pv modules, early government incentives for rooftop solar, increasing need for decentralized power systems, rising consumer interest in self generation, expansion of commercial and industrial solar adoption.

The distributed solar power generation market size is expected to see strong growth in the next few years. It will grow to $202.47 billion in 2030 at a compound annual growth rate (CAGR) of 6.1%. The growth in the forecast period can be attributed to growing integration of distributed energy storage, increasing support for net metering reforms, expansion of urban solar infrastructure projects, rising adoption of perovskite and thin film pv, increasing demand for clean distributed power in ev charging networks. Major trends in the forecast period include growing adoption of rooftop solar installations, increasing deployment of building integrated solar systems, rising use of smart inverters in distributed solar networks, growing development of community solar projects, expansion of distributed solar in industrial and commercial sites.

The increasing demand for electricity and consumption is driving the growth of the distributed solar power generation market during the forecast period. Urbanization, industrialization, technological advancements, and changes in lifestyle habits are contributing to the rising need for electricity and higher consumption levels. Distributed solar power generation helps reduce overall electricity demand from the grid by producing power on-site, offsetting the need for grid electricity during daylight hours, and easing the strain on utility infrastructure. For example, in June 2024, according to a report published by the Energy Institute (EI), a UK-based professional membership body for the energy sector, electricity generation from renewables (excluding hydro) rose by 13% to 4,748 TWh. Additionally, fossil fuel consumption in 2023 increased nearly as much as primary energy - by 1.5%, reaching 505 EJ. Therefore, the increasing demand for electricity is expected to propel the growth of the distributed solar power generation market.

Key players in the distributed solar power generation market are focusing on developing technologically advanced products to enhance efficiency, reliability, and integration capabilities. Photovoltaic inverters are a significant area of innovation, maximizing the efficiency and performance of solar PV installations. SOFARSOLAR Co., Ltd., a China-based company, launched the PowerMega (350KTLX0) in November 2023, a 350 kW utility PV inverter tailored for utility-scale projects globally. This innovative inverter boasts a maximum efficiency of 99.05%, even at high temperatures of up to 50 degrees Celsius. With features such as ultra-high current integration, simplified installation, and intelligent protection mechanisms, the PowerMega sets a new industry standard. It accommodates high-power modules of 500Wp and above, ensuring lower Levelized Cost of Electricity (LCOE) and maximizing yields for end-users.

In March 2023, RWE Clean Energy LLC, a Germany-based energy company, completed the acquisition of the Clean Energy Businesses of Consolidated Edison Inc. for $6.8 billion. This strategic move enhances RWE's position as the fourth-largest renewable energy company in the United States and the second-largest solar owner and operator in the country. The acquisition is part of RWE's growth strategy in onshore wind, solar energy, and battery storage. Consolidated Edison, Inc., a US-based energy company, is known for its expertise in distributed solar energy generation services.

Major companies operating in the distributed solar power generation market are TotalEnergies SE, Huawei Technologies Co. Ltd., Tesla Inc., General Electric Co., Siemens Energy AG, ABB Ltd., NextEra Energy Inc., Sharp Corporation, LONGi Solar Technology Co. Ltd., JinkoSolar Holding Co. Ltd., JA Solar Holdings Co. Ltd., Canadian Solar Inc., Enel Green Power, Risen Energy Co. Ltd., Daqo New Energy Corp., Hanwha Q Cells Co. Ltd., Schneider Electric SE, SolarEdge Technologies Inc., First Solar Inc., Sunrun Inc., Enphase Energy Inc., Kyocera Corporation, SMA Solar Technology AG, SunPower Corporation, Suntech Power Holdings Co. Ltd., Vivint Solar Inc., Yingli Solar, Sharp Energy Solutions Corporation, SolarCity Corporation.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on imported solar panels, inverters, and raw materials have increased the cost of distributed solar installations, especially for pv systems relying heavily on foreign module suppliers. These impacts are most significant in North America and Europe, where dependence on Asian manufacturing amplifies price volatility and slows small scale solar deployment. Nonetheless, tariffs are encouraging localized manufacturing, stimulating domestic innovation in module production, and driving strategic diversification of supply chains to reduce long term reliance on imports.

The distributed solar power generation research report is one of a series of new reports that provides distributed solar power generation market statistics, including the distributed solar power generation industry's global market size, regional shares, competitors with an distributed solar power generation market share, detailed distributed solar power generation market segments, market trends and opportunities, and any further data you may need to thrive in the distributed solar power generation industry. This distributed solar power generation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Distributed solar power generation entails the production of electricity through solar energy utilizing a network of small-scale solar photovoltaic (PV) systems strategically installed in diverse locations, including rooftops, building facades, or adjacent land areas where the electricity is utilized. These systems are characterized by their smaller scale compared to centralized power plants, spanning from residential rooftops to more extensive commercial installations, with capacities reaching up to 10 megawatts (MW).

The primary technologies employed in distributed solar power generation include concentrated solar power (CSP) systems and photovoltaic systems. Concentrated solar power (CSP) systems represent a form of renewable energy technology that utilizes solar energy to generate electricity. These systems find application in specific scenarios where concentrated solar energy is needed, such as industrial processes or heating applications in commercial buildings. Solar modules are further classified into types such as polycrystalline, amorphous silicon cells, cadmium telluride, monocrystalline, and others, catering to various end-users such as industrial, residential, commercial, and more.Asia-Pacific was the largest region in the distributed solar power generation market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the distributed solar power generation market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the distributed solar power generation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The distributed solar power generation market consists of revenues earned by entities by providing services such as grid support and energy storage, microgrids, energy management and monitoring services, financing and leasing services, maintenance, and operations. The market value includes the value of related goods sold by the service provider or included within the service offering. The distributed solar power generation market also includes sales of solar panels, inverters, mounting and racking systems, solar charge controllers, and solar energy management systems. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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