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Distributed Photovoltaic Grid-Connected System Market Revenue Outlook: What CAGR Is Expected Through 2030?
The distributed photovoltaic grid-connected system market size has experienced substantial growth in recent years. This market is projected to expand from $76.1 billion in 2025 to $86.52 billion in 2026, demonstrating a compound annual growth rate (CAGR) of 13.7%. The historical increase can be attributed to the expansion of residential solar adoption, the availability of net metering policies, declining solar panel costs, the development of basic grid interconnection standards, and increasing urban electricity demand.
The market size for distributed photovoltaic grid-connected systems is set for significant expansion in the upcoming years, with projections indicating it will reach $145.77 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 13.9%. This anticipated growth is driven by increasing investments in decentralized renewable energy, a rising uptake of smart inverters, the expansion of commercial and industrial solar rooftop installations, the growing integration of storage systems, and an increasing emphasis on grid flexibility and resilience. Key trends anticipated in this period include the wider deployment of rooftop grid-connected PV systems, the increased adoption of microinverters and smart inverters, greater integration of energy management systems, the broadening of small-scale commercial PV installations, and an enhanced focus on grid-compliant protection systems.
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Distributed Photovoltaic Grid-Connected System Market Development Factors: Which Trends Are Supporting Demand?
The increasing worldwide need for clean renewable energy is projected to drive the expansion of the distributed photovoltaic grid-connected system market in the future. Clean renewable energy involves generating and consuming electricity from sources like solar, wind, and hydropower, which emit low or no carbon and foster long-term environmental sustainability. This surge in demand stems from more ambitious government decarbonization goals and growing endeavors by industries and utilities to lessen reliance on fossil fuels and bolster energy security. Distributed photovoltaic grid-connected systems facilitate the uptake of clean renewable energy by allowing effective grid-connected solar power generation, which directly supplies electricity to current power networks and enhances renewable integration at the distribution stage. An example of this trend is the report in March 2025 by the International Renewable Energy Agency (IRENA), a UAE-based intergovernmental energy body, which stated that renewable power capacity expanded by 15.1% from 509 GW in 2023 to 585 GW in 2024, accounting for over 90% of new global power capacity installations. Consequently, the escalating worldwide demand for clean renewable energy is fueling the growth of the distributed photovoltaic grid-connected system market.
Distributed Photovoltaic Grid-Connected System Market Segment Performance And Strategic Opportunities
The distributed photovoltaic grid-connected system market covered in this report is segmented –
1) By Component: Solar Panels; Inverters; Mounting Structures; Monitoring And Control Systems; Balance Of System (BOS) Components
2) By System Type: Rooftop Distributed Photovoltaic Grid‑Connected Systems; Ground‑Mounted Small Distributed Photovoltaic Systems; Carport And Canopy Distributed Photovoltaic Systems
3) By Connectivity: Single-Phase Grid-Connected; Three-Phase Grid-Connected
4) By End User: Residential; Commercial; Industrial; Institutional
Subsegments:
1) By Solar Panels: Monocrystalline Solar Panels; Polycrystalline Solar Panels; Thin-Film Solar Panels; Bifacial Solar Panels; Concentrated Photovoltaic (CPV) Panels
2) By Inverters: String Inverters; Central Inverters; Microinverters; Hybrid Inverters; Battery-Based Inverters
3) By Mounting Structures: Roof-Mounted Systems; Ground-Mounted Systems; Tracking Systems; Floating Solar Mounts; Building-Integrated PV (BIPV)
4) By Monitoring And Control Systems: Energy Management Systems; Remote Monitoring Platforms; Fault Detection And Diagnostics Systems
5) By Balance Of System (BOS) Components: Cables And Wiring; Junction Boxes And Combiner Boxes; Transformers; Protection Devices; Energy Storage Units
Distributed Photovoltaic Grid-Connected System Market Transformation Trends: Which Innovations Are Driving Change?
Companies operating in the distributed photovoltaic grid-connected system market are focusing on developing advanced solar solutions, such as utility-scale and community-based PV systems, to enhance energy efficiency, reduce carbon emissions, and support renewable integration. Utility-scale and community-based PV systems are large solar power installations that supply electricity directly to the grid (utility-scale) or to local communities’ shared networks. For instance, in September 2023, the Asian Development Bank (ADB), a Philippines-based regional development bank, commissioned a grid-connected solar photovoltaic power plant in AltAI City, Mongolia. The 10 MW solar power facility is designed to provide clean electricity to the local grid, optimize energy distribution, and reduce reliance on fossil fuels. This plant features advanced solar modules and monitoring technologies, enabling efficient operation, real-time performance tracking, and long-term sustainability.
Distributed Photovoltaic Grid-Connected System Market Key Players: Which Companies Shape Industry Competition?
Major companies operating in the distributed photovoltaic grid-connected system market are Huawei Technologies Co. Ltd., Schneider Electric SE, ABB Ltd., JinkoSolar Holding Co. Ltd., Trina Solar Co. Ltd., LONGi Green Energy Technology Co. Ltd., Delta Electronics Inc., Sungrow Power Supply Co. Ltd., Canadian Solar Inc., First Solar Inc., SolarEdge Technologies Inc., Enphase Energy Inc., SMA Solar Technology AG, Waaree Energies Limited, Hanwha Q CELLS Co. Ltd., Ginlong Technologies Co. Ltd., Fronius International GmbH, Vikram Solar Private Limited, SunPower Corporation, Dongguan Kaideng Energy Technology Co. Ltd., Jiangsu Tianpu New Energy Co. Ltd., Altenergy Power System Inc., Project Drawdown, Xiamen Kesheng Metal Technology Co. Ltd., Jiangsu Simeier Photoelectric Technology Co. Ltd.
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Distributed Photovoltaic Grid-Connected System Market Regional Analysis: Which Region Leads By Revenue?
Asia-Pacific was the largest region in the distributed photovoltaic grid-connected system market in 2025, and it is expected to be the fastest-growing region in the forecast period. The regions covered in the distributed photovoltaic grid-connected system market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.