Grid Connected PV Systems Market Size, Share & Industry Analysis, By Component (Power Conditioning Unit, Grid Connection Equipment, Inverters, and Others), By Technology (Thin Film, Crystalline Silicon, and Others), By Application (Residential, Commercial, Utility, and Industrial), and Regional Forecast, 2026-2034

The global connected PV systems market is witnessing moderate growth, with a value of ~USD 59.2 billion in 2025. The market is projected to grow to ~USD 210.0 billion by 2034, exhibiting a CAGR of ~13.5% during the forecast period (2026-2034). The global market is slated to expand, driven by the growing significance of clean energy. A grid-connected photovoltaic (PV) system, also known as an on-grid solar system, is a solar power system that is connected to the public electricity grid. This type of system will generate energy from solar panels during the day. Any excess solar energy will be sold to the grid, and when the sun is not shining (for example, at night), electricity will come from the grid. A battery is not required for a grid-connected photovoltaic system, thereby reducing costs.

In October 2025, REIL (Electronics & Instruments Limited), a "Mini Ratna" Central Public Sector Enterprise established by the Ministry of Heavy Industries, released a Notice Inviting Tender (NIT No.: REIL/NIT/PMC/2025-26/001) to implement 22 MWp grid-connected solar power plants on government buildings in various states and union territories in the Renewable Energy Service Company (RESCO) model.

Impact of AI on the Grid-Connected PV Systems Market

In the grid-connected photovoltaic (PV) systems industry, Artificial Intelligence (AI) is becoming increasingly transformative, improving efficiency, reliability, and financial performance across the solar energy value chain. Managing variability, maximizing system performance, and minimizing operational expenses have become essential as solar penetration has increased globally. AI technologies are particularly well-suited to tackle these issues.

• The data from the DOE (Department of Energy) Solar Forecasting Workshop shows the roughly 1,600 MW-DC of installed behind-the-meter photovoltaic capacity represented in the datasets from the workshop participants, which demonstrates the scale of solar resource data that is now included in grid forecasting models used for planning and operations. The goal of the DOE's modelling initiatives, which are backed by national laboratories, is to lower uncertainty and refine the algorithms used to predict the performance of PV systems. This helps AI/ML methods that depend on precise models to predict energy production and enhance integration strategies.

Grid Connected PV Systems Market Driver

Rising Demand for Clean and Renewable Energy to Propel the Market Growth

One of the primary factors driving the expansion of the grid-connected photovoltaic (PV) systems market is the growing global emphasis on clean, renewable energy. Countries around the world are making efforts to reduce carbon emissions, lower reliance on fossil fuels, and fulfill obligations under climate agreements, including the Paris Agreement.

• In October 2025, Enphase Energy, a California-based distributor of solar inverters and energy storage systems, launched a new full off-grid solar and battery solution. This system is currently available in the U.S., with other markets expected to follow in 2026.

Grid Connected PV Systems Market Restraint

High Initial Installation and Infrastructure Costs to Restrain the Market

Although the prices of solar panels and inverters are substantially lower than they were ten years ago, the relatively high upfront capital required to establish grid-connected photovoltaic (PV) systems remains a significant barrier to market expansion. Grid-connected solar systems have high upfront costs, including panel, inverter, mounting system, cabling, and grid interconnection costs.

Moreover, design, engineering, permitting, and maintenance costs raise the total project cost. In developing and emerging economies, limited access to low-cost financing discourages residential and small commercial consumers from adopting grid-connected solar systems, particularly given high upfront costs.

Grid-Connected PV Systems Market Opportunity

Integration of Smart Grids and Energy Storage to Create Opportunity

The integration of smart grids and energy storage systems is emerging as a major market opportunity for grid-connected photovoltaic (PV) systems, as they address two significant issues with solar power: intermittency and grid stability.

Smart grids utilize digital communication, automation, and real-time data analytics to optimize the flow of electricity between producers and consumers. When integrated with appropriately sized grid-connected PV systems, they enable real-time power distribution, load balancing, and integration of distributed solar-derived generation into the electric power grid. This will enable utilities to manage variability in solar generation due to weather conditions or time of day.

• In August 2025, JinkoSolar Holding Co., Ltd. (“JinkoSolar”), a world-class developer of advanced solar module technology, recently provided support to a new Agri-PV project in Veringenstadt, Baden-Württemberg, with a total of 14,388 high-performance modules. The site, which enables dual land use for agricultural production and clean energy generation, was successfully connected to the public grid in April 2025 and is now operating at full capacity.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators
• Drivers, Restraints, Trends, and Opportunities
• Business Strategies Adopted by Key Players
• Impact of AI on the Global Grid-Connected PV Systems Market
• Consolidated SWOT Analysis of Key Players

Analysis By Component

The market is segmented by component into power conditioning units, grid connection equipment, inverters, and others.

The power conditioning units segment is the market's dominant segment. Power conditioning units (PCUs) are the leading component of the grid-connected PV systems market, as they play a crucial role in converting, managing, and optimizing power for the utility grid.

• The U.S. DOE's (Department of Energy) Solar Systems Integration Basics project predicts that by 2030, up to 80% of electricity might pass via power electronic equipment, emphasizing the growing significance of inverters and PCS in grid-connected PV systems and the overall grid operation.

The grid connection equipment segment is the second-largest in the market, enabling the safe, stable, and efficient integration of solar-generated electricity into the central power grid.

Analysis By Technology

Based on technology, the market is divided into thin film, crystalline silicon, and others.  

The crystalline silicon (c-Si) segment leads the grid-connected PV systems market, as it provides a widely used, reliable, efficient, and consequently cost-effective solar technology that currently accounts for the majority of global solar installations.

• According to International Energy Agency (IEA) statistics, crystalline polysilicon still holds more than 98% of the global market share for PV module production capacity.

The thin-film segment is the second-largest in the market. The thin-film segment ranks second in the grid-connected PV systems sector due to its inherent advantages, including lower manufacturing costs, improved performance in low-light and high-temperature conditions, flexibility, and its position as a viable alternative to crystalline silicon in certain applications.

Analysis By Application

By application, the market is divided into residential, commercial, utility, and industrial.

The residential segment is the dominant market segment, driven by the accelerated adoption of rooftop solar installations, fueled by rising electricity costs, government incentives, and growing consumer awareness of the benefits of clean energy.

• As per a report published in January 2026, the U.S. Energy Information Administration (EIA) estimates that the residential sector, which is dominated by rooftop and other grid-connected residential PV systems, makes up around 67% of the total small-scale solar capacity in the U.S.

The commercial segment is the second-largest. The segment is experiencing rapid growth as business increase efforts to reduce operating costs, meet sustainability goals, and ensure energy reliability through on-site solar generation.

Regional Analysis

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Geographically, the market has been analyzed across Europe, North America, Asia Pacific, Latin America, and the Middle East & Africa.

The PV systems market in North America's grid-connected market is experiencing rapid growth driven by strong policy support, declining solar energy generation costs, expanding renewable energy targets, and increasing adoption across residential, commercial, and utility sectors.

The Asia Pacific is the second-largest region in the world. The regional market is expanding rapidly due to strong government policies, rapid urbanization, lower solar power costs, and increasing energy demand across emerging economies.

• In July 2025, Trinasolar, a global leader in smart PV and energy storage solutions, announced its partnership with Solaris Energy (Pvt) Ltd., one of the leading solar distributors in Sri Lanka, to support the country's transition to clean energy. The two companies signed a Memorandum of Understanding (MOU) at SNEC 2025 in Shanghai, the world's largest solar exhibition. The MOU lays the groundwork for the supply and delivery of 25 megawatt-peak (MWp) of solar modules throughout Sri Lanka.

The grid-connected PV systems market in Europe is expected to grow at the highest CAGR during the forecast period. With the European Green Deal and national energy plans placing strong emphasis on decarbonizing the energy sector and achieving net-zero emissions by 2050, Europe has been a pioneer in renewable energy adoption for a long time.

Key Players Covered

The global grid-connected PV systems market is fragmented, with a large number of providers. Various market initiatives, R&D activities, and other factors are anticipated to drive market growth. In June 2025, Delta Electronics India received an order from KP Group for approximately 1 GW of solar PV inverters to be supplied over a 12-month timeframe. This order is part of three MoUs between Delta and KP Group to facilitate projects in solar, energy storage, green hydrogen, and EV charging infrastructure. In the U.S., the top 5 players account for around 35% of the market.

The report includes the profiles of the following key players:

• Trina Solar (China)
• JinkoSolar Holding Co., Ltd. (China)
• Canadian Solar Inc. (Canada)
• First Solar, Inc. (U.S.)
• Hanwha Q CELLS Co., Ltd. (South Korea)
• SMA Solar Technology AG (Germany)
• ABB Ltd. (Switzerland)
• Schneider Electric SE (France)
• Huawei Technologies Co., Ltd. (China)
• SolarEdge Technologies, Inc. (U.S.)
• LG Electronics Inc. (South Korea)
• JA Solar Technology Co., Ltd. (China)
• Delta Electronics, Inc. (Taiwan)
• SunPower Corporation (U.S.)

Key Industry Developments

• December 2024: ABB announced that it had agreed to acquire Gamesa Electric's power electronics unit, a Siemens Gamesa company in Spain, to strengthen ABB's position in the growing market for high-power renewable power conversion technology. The acquisition will significantly enhance ABB's existing power conversion product and service offerings for renewables OEMs and end users. It will add new engineering and portfolio assets that will support ABB's Motion business area's profitable growth strategy.
• October 2024: Schneider Electric, the global specialist in the digital transformation of energy management and automation, will unveil new developments and innovations at Enlit 2024. Amid increasing pressure on the energy sector, the company is providing end-to-end smart solutions across the energy chain, enabling businesses to thrive.