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    US Smart Solar Market

    ID: MRFR/E&P/14832-HCR
    100 Pages
    Snehal Singh
    October 2025

    US Smart Solar Market Research Report By Technology (Photovoltaic, Concentrated Solar Power, Solar Thermal Energy, Building-Integrated Photovoltaics), By Component (Solar Panels, Inverters, Batteries, Monitoring Systems), By Application (Residential, Commercial, Utility Scale) and By End Use (Energy Generation, Power Backup, Grid-Connected Applications) - Forecast to 2035

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    US Smart Solar Market Infographic
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    US Smart Solar Market Summary

    As per MRFR analysis, the US smart solar market Size was estimated at 5000.0 USD Million in 2024. The US smart solar market is projected to grow from 5525.0 USD Million in 2025 to 15000.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 10.5% during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The US smart solar market is experiencing robust growth driven by technological advancements and increasing energy demands.

    • The largest segment in the US smart solar market is residential solar installations, while the fastest-growing segment is commercial solar solutions.
    • There is a notable increase in the adoption of smart technologies, enhancing the efficiency and management of solar energy systems.
    • Government incentives and support are playing a crucial role in accelerating market growth and adoption of smart solar technologies.
    • Technological advancements in solar energy and rising energy costs are key drivers propelling the market forward.

    Market Size & Forecast

    2024 Market Size 5000.0 (USD Million)
    2035 Market Size 15000.0 (USD Million)

    Major Players

    First Solar (US), SunPower (US), Canadian Solar (CA), JinkoSolar (CN), Trina Solar (CN), LONGi Green Energy (CN), Enphase Energy (US), SMA Solar Technology (DE), Vivint Solar (US)

    US Smart Solar Market Trends

    The smart solar market is currently experiencing a transformative phase, driven by advancements in technology and increasing consumer awareness regarding sustainability. The integration of smart technologies into solar energy systems enhances efficiency and optimizes energy consumption. This evolution is characterized by the deployment of smart inverters, energy management systems, and real-time monitoring tools, which collectively contribute to improved performance and user engagement. As a result, homeowners and businesses are increasingly adopting these innovative solutions, leading to a more decentralized energy landscape. Furthermore, supportive government policies and incentives are fostering growth, encouraging investments in renewable energy infrastructure. In November 2025, the smart solar market appears poised for further expansion, as stakeholders recognize the potential for cost savings and environmental benefits. The shift towards electrification and the electrification of transportation systems may also drive demand for solar energy solutions. Additionally, the growing emphasis on energy independence and resilience in the face of climate change challenges suggests that the smart solar market will continue to evolve, adapting to the needs of consumers and the broader energy ecosystem. This dynamic environment indicates a promising future for smart solar technologies, as they become integral to the energy transition.

    Increased Adoption of Smart Technologies

    The integration of smart technologies into solar systems is becoming more prevalent. This trend includes the use of smart inverters and energy management systems that allow users to monitor and optimize their energy consumption in real-time. As consumers become more tech-savvy, the demand for these advanced solutions is likely to rise.

    Government Incentives and Support

    Government policies are playing a crucial role in promoting the smart solar market. Incentives such as tax credits and rebates encourage both residential and commercial investments in solar technologies. This support is essential for driving growth and making solar energy more accessible to a wider audience.

    Focus on Energy Resilience

    The increasing focus on energy resilience is shaping the smart solar market. As climate-related events become more frequent, consumers are seeking solutions that enhance energy security. Smart solar technologies offer the potential for greater reliability and independence, appealing to those concerned about energy disruptions.

    US Smart Solar Market Drivers

    Rising Energy Costs

    The smart solar market is being propelled by the rising costs of traditional energy sources. As fossil fuel prices fluctuate and often increase, consumers and businesses are seeking alternative energy solutions. In 2025, the average residential electricity price in the US has reached approximately $0.14 per kWh, prompting a shift towards renewable energy sources. Solar energy, particularly when integrated with smart technologies, offers a viable solution to mitigate these costs. By investing in solar systems, users can potentially reduce their energy bills by up to 50%, depending on their location and energy consumption patterns. This economic incentive is driving more households and commercial entities to adopt solar solutions, thereby expanding the smart solar market. The financial benefits associated with solar energy adoption are likely to continue influencing consumer behavior and market dynamics.

    Regulatory Framework and Policy Support

    The smart solar market is significantly influenced by the regulatory framework and policy support provided by federal and state governments. In 2025, various incentives, such as tax credits and rebates, are available to encourage solar adoption. The federal Investment Tax Credit (ITC) allows homeowners and businesses to deduct a substantial percentage of the cost of solar systems from their federal taxes. Additionally, many states have implemented Renewable Portfolio Standards (RPS) that mandate a certain percentage of energy to come from renewable sources. These policies create a favorable environment for the smart solar market, making solar installations more financially attractive. As regulatory support continues to evolve, it is likely to stimulate further growth in the market, encouraging more stakeholders to invest in solar technologies.

    Increased Demand for Energy Independence

    The smart solar market is witnessing a surge in demand for energy independence among consumers and businesses. As energy security becomes a priority, many are looking to reduce their reliance on traditional energy sources. In 2025, a notable trend shows that over 60% of consumers express interest in generating their own electricity through solar power. This desire for self-sufficiency is driving the adoption of smart solar technologies, which enable users to monitor and manage their energy consumption effectively. The integration of battery storage systems allows for energy storage during peak production times, providing users with greater control over their energy usage. This trend towards energy independence is likely to continue shaping the smart solar market, as more individuals and organizations seek to harness renewable energy for their own needs.

    Technological Advancements in Solar Energy

    The smart solar market is experiencing rapid technological advancements that enhance efficiency and performance. Innovations such as bifacial solar panels and energy storage systems are becoming increasingly prevalent. These technologies allow for greater energy capture and utilization, which is crucial for maximizing solar energy output. In 2025, the efficiency of solar panels has improved to an average of 22%, indicating a significant leap from previous years. Furthermore, the integration of artificial intelligence and machine learning in solar energy management systems is optimizing energy consumption patterns. This trend not only reduces costs but also increases the reliability of solar energy systems, making them more appealing to consumers and businesses alike. As these technologies continue to evolve, they are likely to drive growth in the smart solar market, attracting investments and fostering competition among manufacturers.

    Environmental Awareness and Sustainability Goals

    The growing emphasis on environmental sustainability is significantly influencing the smart solar market. As awareness of climate change and environmental degradation increases, both consumers and corporations are prioritizing sustainable practices. In 2025, a survey indicates that over 70% of US consumers are willing to pay a premium for products that are environmentally friendly. This shift in consumer behavior is encouraging businesses to adopt renewable energy solutions, including solar power. Companies are setting ambitious sustainability goals, with many aiming for carbon neutrality by 2030. The smart solar market is positioned to benefit from this trend, as solar energy is a clean and renewable resource. The alignment of solar technology with sustainability initiatives is likely to attract investments and partnerships, further driving growth in the market.

    Market Segment Insights

    By Technology: Photovoltaic (Largest) vs. Concentrated Solar Power (Fastest-Growing)

    Photovoltaic technology dominates the market share in the US smart solar market, accounting for a significant portion of energy generation. This segment benefits from the rapid advancements in solar cell efficiency and affordability, making it the preferred choice for residential and commercial installations. In contrast, Concentrated Solar Power (CSP), while smaller in share, is gaining traction due to its ability to generate electricity even when the sun isn’t shining, bolstered by energy storage solutions. Growth trends indicate a robust future for both photovoltaic and concentrated solar power technologies. Photovoltaic systems are increasingly being integrated into various applications, while CSP is capturing interest due to its scalability and potential for utility-scale power generation. Policy incentives and environmental concerns are further driving investments in these technologies, with a clear shift towards sustainable energy solutions becoming pivotal for the sector's expansion.

    Technology: Photovoltaic (Dominant) vs. Concentrated Solar Power (Emerging)

    Photovoltaic technology stands as the dominant force within the US smart solar market, characterized by its widespread adoption and continuous innovation in efficiency. These systems convert sunlight directly into electricity, making them highly effective for various installations, ranging from small residential rooftops to large solar farms. The ease of installation and decreasing costs are significant contributors to their market prevalence. Conversely, Concentrated Solar Power, while an emerging segment, utilizes mirrors or lenses to focus sunlight onto a small area, which generates heat that powers a turbine for electricity production. CSP's scalability and ability to store energy for non-sunny periods present strong growth potential as it addresses energy reliability concerns, setting it apart in the renewable landscape.

    By Component: Solar Panels (Largest) vs. Batteries (Fastest-Growing)

    In the US smart solar market, the component segment is dominated by solar panels, which hold the largest market share. This segment's growth has been facilitated by advancements in photovoltaic technology and the rising demand for renewable energy solutions. In contrast, batteries have emerged as the fastest-growing segment due to the increasing need for energy storage solutions as solar adoption expands. Looking ahead, growth trends in the component segment are driven by several factors. The surge in solar panel installations is augmented by government incentives and falling costs, making it an attractive investment. Batteries are also experiencing rapid growth as new technologies enhance storage capabilities, making solar energy more reliable and accessible for consumers, ultimately fueling further market expansion.

    Solar Panels (Dominant) vs. Batteries (Emerging)

    Solar panels are the dominant force in the US smart solar market, representing the backbone of solar energy systems due to their efficiency and technological advancements. Their widespread adoption is driven by decreasing costs and increasing efficiency, making them the preferred choice for both residential and commercial applications. On the other hand, batteries are emerging as a crucial component, particularly for energy storage needs. As solar energy generation grows, the demand for effective storage solutions will increase significantly, leading to innovations in battery technologies. This shift not only addresses energy reliability concerns but also enhances the overall viability of solar energy as a primary energy source.

    By Application: Residential (Largest) vs. Commercial (Fastest-Growing)

    The US smart solar market has seen a significant distribution of market share among the application segments. Residential applications currently hold the largest share, driven by increasing consumer awareness and incentives for solar adoption. In contrast, the commercial sector is rapidly gaining traction, capturing a noteworthy portion of the market as businesses aim to reduce energy costs and enhance sustainability measures. In terms of growth trends, the commercial segment is emerging as the fastest-growing, fueled by technological advancements and favorable regulatory frameworks. Strong demand for renewable energy solutions is propelling both residential and commercial installations, with businesses increasingly investing in solar technologies to boost operational efficiency. These factors are expected to drive impressive growth rates in the commercial space over the coming years as energy efficiency becomes a priority across sectors.

    Residential (Dominant) vs. Commercial (Emerging)

    The residential segment of the US smart solar market is characterized by its strong market presence, driven by the increasing adoption of solar panels among homeowners seeking to lower electricity bills and gain energy independence. It benefits from government incentives and financing options, making it an accessible choice for many households. Conversely, the commercial segment is emerging with remarkable growth, as more businesses recognize solar energy's potential to reduce costs and enhance brand reputation. Companies in this sector often pursue larger-scale installations and long-term energy solutions, leading to a competitive landscape that continuously innovates to meet energy demands. Together, these segments showcase a dynamic shift in energy consumption patterns amid rising environmental consciousness.

    By End Use: Energy Generation (Largest) vs. Power Backup (Fastest-Growing)

    The US smart solar market exhibits a diverse landscape across the end use segments, with Energy Generation leading the market share significantly. Power Backup follows closely, emerging as a critical segment that caters to the growing demand for energy resilience. Grid-Connected Applications represent a stable part of the market, providing essential connectivity for solar energy systems. The overall distribution indicates a robust preference for Energy Generation, reflecting its established market position and reliability as a primary segment. Growth trends in the US smart solar market are driven by increasing energy demands and a shift towards renewable sources. Power Backup is rapidly gaining traction due to rising awareness of energy security, especially in regions prone to outages. The adoption of advanced battery storage technologies and government incentives are also fueling the expansion of Grid-Connected Applications, as consumers seek efficient integration into existing power systems. This dynamic landscape promotes innovation and competition among stakeholders.

    Energy Generation (Dominant) vs. Power Backup (Emerging)

    Energy Generation stands as the dominant segment in the US smart solar market, characterized by significant investments in solar infrastructure and technology. It benefits from a strong emphasis on sustainability and the urgency to reduce carbon footprints. This segment has established itself through a robust network of installations, offering long-term reliability. Power Backup, while emerging, presents unique opportunities in the market, driven by consumer demand for energy independence and reliability during power outages. The innovation in battery technology, alongside favorable legislation promoting renewable energy, positions Power Backup as a fast-growing segment, appealing to homeowners and businesses alike who prioritize continuous power access in an increasingly unstable energy landscape.

    Get more detailed insights about US Smart Solar Market

    Key Players and Competitive Insights

    The smart solar market in the US is currently characterized by a dynamic competitive landscape, driven by technological advancements, regulatory support, and increasing consumer demand for sustainable energy solutions. Major players such as First Solar (US), SunPower (US), and Enphase Energy (US) are strategically positioning themselves through innovation and partnerships. First Solar (US) focuses on developing advanced thin-film solar technology, which enhances efficiency and reduces costs, while SunPower (US) emphasizes residential solar solutions and energy storage systems, catering to the growing demand for integrated energy solutions. Enphase Energy (US) is leveraging its expertise in microinverter technology to enhance system performance and reliability, thereby shaping a competitive environment that prioritizes technological differentiation and customer-centric solutions.

    Key business tactics within this market include localizing manufacturing and optimizing supply chains to mitigate risks and enhance responsiveness to market demands. The competitive structure appears moderately fragmented, with a mix of established players and emerging companies vying for market share. This fragmentation allows for diverse offerings and innovation, as companies seek to differentiate themselves through unique value propositions and operational efficiencies.

    In October 2025, First Solar (US) announced a strategic partnership with a leading energy storage provider to integrate battery solutions with its solar technology. This move is significant as it positions First Solar (US) to offer comprehensive energy solutions that address the intermittency of solar power, thereby enhancing its competitive edge in the market. The integration of storage capabilities is likely to attract a broader customer base seeking reliable and sustainable energy options.

    In September 2025, SunPower (US) launched a new line of solar panels featuring enhanced efficiency ratings, which could potentially set a new benchmark in the industry. This strategic initiative not only reinforces SunPower's (US) commitment to innovation but also aims to capture a larger share of the residential market, where efficiency and aesthetics are increasingly important to consumers. The introduction of these panels may lead to heightened competition among manufacturers to improve their product offerings.

    In August 2025, Enphase Energy (US) expanded its operations by entering into a joint venture with a prominent technology firm to develop AI-driven energy management systems. This collaboration is indicative of a broader trend towards digitalization in the smart solar market, as companies seek to leverage advanced technologies to optimize energy consumption and enhance user experience. The integration of AI could significantly improve system performance and customer engagement, positioning Enphase Energy (US) as a leader in the digital transformation of solar energy solutions.

    As of November 2025, current competitive trends in the smart solar market are heavily influenced by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are increasingly shaping the landscape, enabling companies to pool resources and expertise to drive innovation. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition towards a focus on technological innovation, reliability of supply chains, and the ability to offer comprehensive energy solutions. This shift underscores the importance of adaptability and forward-thinking strategies in navigating the complexities of the smart solar market.

    Key Companies in the US Smart Solar Market market include

    Industry Developments

    Amid increasing energy demands and climate initiatives, the US Smart Solar Market is witnessing significant activity. Enphase Energy has expanded its product offerings, enhancing its microinverter technology for better efficiency, while Tesla continues to innovate with its Solar Roof, increasing its presence in residential markets. 

    In September 2023, Sunnova Energy announced a strategic partnership with Duke Energy to enhance solar deployment in underserved areas. Merger activities are evident as Canadian Solar announced its acquisition of a solar project developer in August 2023, which will boost its project pipeline in the US. Moreover, JinkoSolar's recent collaborations with First Solar for module supply agreements reflect a strong commitment to enhancing solar capacity. In terms of market valuation, NextEra Energy maintains its leadership, boasting a significant share in renewable energy generation that positively impacts the sector. 

    The last couple of years have seen an uptick in bipartisan support for solar initiatives, with federal incentives making solar installations more affordable. Overall, the US Smart Solar Market is evolving rapidly, driven by technological advancements and firm government backing for renewable energy development.

    Future Outlook

    US Smart Solar Market Future Outlook

    The smart solar market is projected to grow at 10.5% CAGR from 2024 to 2035, driven by technological advancements, regulatory support, and increasing energy demands.

    New opportunities lie in:

    • Development of integrated energy management systems for commercial buildings.
    • Expansion of solar-as-a-service models for residential customers.
    • Investment in smart grid technologies to enhance energy distribution efficiency.

    By 2035, the smart solar market is expected to achieve substantial growth and innovation.

    Market Segmentation

    US Smart Solar Market End Use Outlook

    • Energy Generation
    • Power Backup
    • Grid-Connected Applications

    US Smart Solar Market Component Outlook

    • Solar Panels
    • Inverters
    • Batteries
    • Monitoring Systems

    US Smart Solar Market Technology Outlook

    • Photovoltaic
    • Concentrated Solar Power
    • Solar Thermal Energy
    • Building-Integrated Photovoltaics

    US Smart Solar Market Application Outlook

    • Residential
    • Commercial
    • Utility Scale

    Report Scope

    MARKET SIZE 2024 5000.0(USD Million)
    MARKET SIZE 2025 5525.0(USD Million)
    MARKET SIZE 2035 15000.0(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 10.5% (2024 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2024
    Market Forecast Units USD Million
    Key Companies Profiled First Solar (US), SunPower (US), Canadian Solar (CA), JinkoSolar (CN), Trina Solar (CN), LONGi Green Energy (CN), Enphase Energy (US), SMA Solar Technology (DE), Vivint Solar (US)
    Segments Covered Technology, Component, Application, End Use
    Key Market Opportunities Integration of advanced energy management systems enhances efficiency in the smart solar market.
    Key Market Dynamics Technological advancements drive efficiency and adoption in the smart solar market, reshaping competitive dynamics and consumer preferences.
    Countries Covered US

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    FAQs

    What is the expected market size of the US Smart Solar Market in 2024?

    The US Smart Solar Market is expected to be valued at 5.2 USD Billion in 2024.

    What is the projected growth rate of the US Smart Solar Market from 2025 to 2035?

    The market is anticipated to grow at a CAGR of 10.439% from 2025 to 2035.

    What will be the market size of the US Smart Solar Market by 2035?

    By 2035, the US Smart Solar Market is expected to reach a valuation of 15.5 USD Billion.

    Which technology segment holds the largest market share in 2024?

    The Photovoltaic segment is forecasted to be the largest, valued at 2.5 USD Billion in 2024.

    What is the market value for Concentrated Solar Power technology in 2035?

    The Concentrated Solar Power segment is expected to reach a market value of 4.5 USD Billion by 2035.

    Who are the key players in the US Smart Solar Market?

    Some major players in the market include Enphase Energy, Trina Solar, and Tesla among others.

    What market size is projected for Solar Thermal Energy by 2035?

    The Solar Thermal Energy segment is expected to be valued at 2.5 USD Billion in 2035.

    What opportunities are driving growth in the US Smart Solar Market?

    Increasing demand for renewable energy and energy independence are key growth drivers.

    What will the market value for Building-Integrated Photovoltaics be in 2024?

    The Building-Integrated Photovoltaics segment is expected to be valued at 0.4 USD Billion in 2024.

    How is the competitive landscape evolving in the US Smart Solar Market?

    The competitive landscape is becoming increasingly dynamic with significant participation from various established and emerging firms.

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