Sunny days: The residential market is anticipated to create strong demand for solar installations

The Solar Panel Installation industry consists of operators that primarily install solar panels as part of general residential and commercial contracting services. Since the turn of the century, solar energy has exploded into a competitive substitute to traditional sources of power for both residential and commercial purposes. A strong expansion in corporate profit, broad economic improvements in the US economy, as well as favorable investment tax credits, kept demand from the nonresidential segment high. Industry operators benefited significantly from relatively inexpensive solar panel inputs over the five years to 2018, as a result of Chinese manufacturers flooding the US market...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • A strong expansion in corporate profit kept demand from the nonresidential segment high
  • Government-sponsored rebate programs have driven the adoption of solar systems
  • Manufacturers will use more energy to produce goods for both US and foreign markets
  • Industry Report - Industry Key Buyers Chapter

    The Solar Panel Installation industry has a low level of concentration, as the top four largest businesses account for less than 10.0% of total industry revenue. The majority of industry operators are smaller businesses that serve the housing and commercial real estate markets in narrow geographic areas. According to a report published by the National Renewable Energy Laboratory, about 64.0% of total industry operators employ less than 10 full time workers. Over the five years to 2018, the industry is expected to remain fragmented, as the number of industry establishments increase at an annualized rate of 22.3%, reaching 30,528 locations. The industry's low level of concentration is anticipated to continue over the five years to 2023...purchase to read more.

    Additional Insights for the Solar Panel Installation Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Solar Panel Installation Industry are

  • Ability to compete on tender
  • Having a good reputation
  • Management of seasonal production
  • IBISWorld analysts also discuss how external factors such as Electric power consumption and Corporate profit in the Solar Panel Installation industry impact industry performance..

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    What's in this report

    What is the Solar Panel Installation Industry?

    Industry operators install solar panels as part of general residential and commercial contracting services. These companies are contracted by a homeowner, a solar panel manufacturer or by solar marketing firms that arrange a buyer for solar panels and contract an operator to carry out the work. Installations of commercial-grade solar power grids are excluded from this report (IBISWorld report OD4493), as are solar thermal systems that lack photovoltaic panels.

    Industry Products
  • Silicone cell panel installation
  • Thin-film panel installation
  • Industry Activities
  • Solar tracker panel installation
  • Fixed rack solar panel installation
  • Ground-mounted solar panel installation
  • Roof-mounted solar panel installation
  • Monitoring services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Electric power consumption
  • Corporate profit
  • Per capita disposable income
  • Tax credits for energy efficiency

  • Current Performance
  • Power prices rise
  • The government steps in
  • Construction markets power industry
  • Chart: Revenue Growth

  • Industry Outlook
  • Electricity consumption to continue rising
  • Government aid to remain a factor
  • Industry profit and structure
  • Table: Solar Panel Installation Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Solar Panel Installation Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Electric Power Transmission
  • Home Builders
  • Roofing Contractors
  • Commercial Building Construction
  • Consumers

  • Key Selling Industries
  • Construction & Mining Equipment Wholesaling
  • Property, Casualty and Direct Insurance
  • Solar Panel Manufacturing

  • Products & Services
  • Silicone cell panel installation
  • Thin-film panel installation
  • Other
  • Chart: Solar Panel Installation Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential installation
  • Nonresidential installation greater than 500 kW
  • Nonresidential installation less than or equal to 500 kW
  • Chart: Major Market Segmentation for the Solar Panel Installation Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Solar Panel Installation

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Solar Panel Installation Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Solar Panel Installation Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Solar Panel Installation Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Electric power consumption (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Grid Parity
  • An equilibrium between the cost and power provided by traditional and alternative energy sources.
  • Photovoltaic
  • Abbreviated PV, the ability to turn generate electrical energy from light energy, usually from the sun.
  • Solar Power Purchasing Agreements
  • Abbreviated SPPA, this contractual obligation sets forth the terms by which a solar power provider will reimburse a third party financier for paying the up-front costs of system installation.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Solar Panel Installation Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Solar Panel Installation:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Solar Panel Installation market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Solar Panel Installation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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