Distributed Solar Power Generation Market Overview 

The global distributed solar power generation market is set to witness significant growth in the coming years. Valued at approximately USD 160.16 billion in 2025, the market is projected to reach USD 224.31 billion by 2030, growing at a CAGR of 6.97% during the forecast period (2025–2030). Distributed solar power generation, which involves generating electricity from solar panels installed at residential, commercial, and industrial locations, provides an alternative to traditional centralized electricity grids, offering cleaner energy and cost savings. 

Driving Factors in Distributed Solar Power Generation Market 

Declining Solar PV System Costs 

One of the primary trends in the distributed solar power generation market is the steady reduction in solar photovoltaic (PV) system costs. Over the past decade, solar panel prices have dropped by nearly 90% globally, while other components, such as inverters and mounting systems, have also become more affordable. This cost decline has significantly improved the levelized cost of electricity (LCOE) for distributed solar systems, encouraging adoption among residential, commercial, and industrial users. 

Increasing Residential Rooftop Solar Installations 

The reduction in solar PV prices, combined with government incentives, has led to a surge in rooftop solar adoption. Homeowners are increasingly installing rooftop PV systems to cut electricity bills and reduce dependency on traditional power grids. Programs like net metering in several countries allow users to sell excess energy back to the grid, further incentivizing rooftop installations. 

Falling Lithium-Ion Battery Prices 

Energy storage is critical for maximizing the benefits of distributed solar power. Lithium-ion battery costs have fallen by over 86% from 2010 to 2021, enabling homeowners and businesses to store excess solar energy efficiently. Lower storage costs increase the feasibility of off-grid and hybrid solar solutions, boosting overall distributed solar adoption. 

Explore the full report for in-depth insights and distributed solar power generation market forecasts - https://www.mordorintelligence.com/industry-reports/global-distributed-solar-power-generation-market-industry?utm_source=globbook  

Market Breakdown: Distributed Solar Power Generation 

Key Players in Distributed Solar Power Generation Market 

Conclusion 

The distributed solar power generation market is poised for steady growth between 2025 and 2030. Declining costs of solar PV modules and batteries, combined with increasing awareness of clean energy solutions and supportive government policies, are key factors driving market adoption. Asia-Pacific will continue to lead global demand, while North America and Europe maintain steady growth through incentives and sustainability programs.