April 21, 2024

Rising demand for solar energy to propel growth of the Global Solar Lease Service Market

 

The global 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:
Solar lease service involves leasing solar panels to customers instead of selling them. This allows homeowners and businesses to use solar power without any upfront costs. The solar panels are owned, installed and maintained by the solar lease company. Some key advantages of solar lease services include low monthly payments, no large upfront costs, professional installation and monitoring by experts. With growing awareness about environmental protection and lower reliance on non-renewable energy sources, the demand for solar lease services is increasing across both commercial and residential sectors.

Market key trends:
One of the major trends in the solar lease service market is the evolution of subscription-based business models. Many companies are now offering solar subscriptions which provide solar power for a fixed monthly rental fee without any long-term contracts. This is gaining popularity due to its flexibility and zero commitments. Another trend is the integration of solar leases with home financing. Some companies are bundling solar leases with mortgages to attract new homeowners. This offers an affordable way for homeowners to install solar panels upfront. Rising adoption of smart technologies is another key trend, with many solar lease providers incorporating features like remote monitoring into their offerings.
Porter’s Analysis
Threat of new entrants: Low startup costs and little proprietary technology prevent new players from easily entering the solar lease service market. However, major barriers such as established brand names, access to distribution channels, and economies of scale of existing players deter new entrants.
Bargaining power of buyers: Individual homeowners have lower bargaining power due to limited financing options. However, large commercial and industrial clients can negotiate better deals and payment terms due to bulk purchases.
Bargaining power of suppliers: Major solar panel manufacturers dominate the supply market. This enables them to influence prices and dictates industry standards.
Threat of new substitutes: Alternate sources of energy production such as wind, hydro and geothermal remain a distant substitute to the flexibility provided by solar energy systems. New energy storage technologies could pose a future threat.
Competitive rivalry: Intense competition exists between solar leasing providers to gain market share.

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 government incentives and initiatives for solar adoption.

Regional analysis: North America dominated the solar lease service market in 2023, owing to supportive federal and state policies promoting renewable energy adoption in the US. Asia Pacific is expected to witness the fastest growth over the forecast period, led by rising investments in solar projects by China and India.

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. Key players are focusing on geographic expansion and partnerships with local installers to consolidate their presence.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it