The solar lease service market is estimated to be valued at US$ 14.84 Bn in 2023 and is expected to exhibit a CAGR of 18.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

 

Market Overview:

 

The solar lease service market involves leasing of solar panels to homeowners and businesses by solar installation companies. The customers are not required to invest money upfront to install solar panels and can utilize solar energy through monthly payments under lease agreements with solar companies. Solar leasing provides flexible options to customers and helps in wider adoption of solar energy.

 

Market Dynamics:

 

The key drivers fueling the growth of solar lease service market include rising adoption of renewable energy sources and government incentives for solar installations. Solar energy is a clean source of energy and use of solar panels reduce carbon footprint. Many governments across regions are providing subsidies and tax credits to encourage people opting for solar energy. Also, rapid decline in prices of solar panels in recent years has made investment in solar economical for consumers. Additionally, flexible lease terms with low monthly payments compared to high upfront investment required for purchase of solar system is another factor propelling the solar lease service market growth. Thirdly, solar leasing removes the operational and maintenance responsibilities from customers and transfers it to solar installers, which simplifies the process of adopting solar energy.

 

SWOT Analysis

 

Strength: Solar lease services reduce upfront cost barriers for consumers by owning, maintaining, and insuring the solar energy system. Monthly payments are lower than utility bills. Battery storage integration allows energy independence and resilience during power outages. Solar panels have long lifespans of 25-30 years with minimal maintenance needs.

 

Weakness: Customers lose ownership of the solar assets and don't benefit from federal tax credits. Early contract termination fees apply if customers move homes before contract expiration. Solar leases lock customers into long term contracts for 10-25 years.

 

Opportunity: Growing public awareness around climate change is driving demand for solar and clean energy adoption. Favorable policies around net metering and renewable portfolio standards encourage solar leases. Rapid declines in solar costs make the technology accessible to middle income households.

 

Threats: Policy uncertainty around net metering and tax credits complicate the business case. Utility companies may introduce demand charges that raise rates for solar export. Expanding wildfires and extreme weather could damage solar equipment not covered by insurance. New battery technologies may disrupt leased solar value propositions over time.

 

Key Takeaways

 

The global solar lease service market is expected to witness high growth, exhibiting CAGR of 18% over the forecast period, due to increasing climate change concerns and favorable clean energy policies. Rapid declines in solar costs have made leased rooftop solar accessible to middle income households seeking energy cost savings without large upfront investments.

 

Regional analysis: North America dominated the market in 2023, accounting for over 30% share due to supportive net metering laws. Asia Pacific is expected to be the fastest growing region, expanding at a CAGR of 20% between 2023-2030 led by strong demand from China, Japan and India. Favorable feed-in-tariffs and residential solar mandates are driving high deployment rates.

 

Key players operating in the solar lease service market are SunPower Corporation, SolarCity Corporation, SunRun Inc., Vivint Solar Inc., Tesla Inc., JinkoSolar Holding Co. Ltd., Canadian Solar Inc., Yingli Green Energy Holding Co. Ltd., Trina Solar Limited, JA Solar Holdings Co. Ltd., Hanwha Q CELLS Co. Ltd., LONGi Solar, Risen Energy Co. Ltd., GCL-SI, Talesun, FIRST SOLAR, Lerri Solar, Kodiak Solar, Palmetto Clean Technology, Freedom Forever. SolarCity Corporation and SunRun Inc. have pioneered the leased solar model and have a significant market share. Newer players are focusing on differentiated offerings around battery storage and virtual power plants.

 

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https://www.rapidwebwire.com/solar-lease-service-market-size-share-growth-outlook-2023/