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Solar lease services allow customers to benefit from solar energy without incurring large upfront costs. These services involve third-party ownership models where a solar company handles installation, financing, and maintenance of residential and commercial rooftop solar panel systems. Customers can sign long-term contracts to purchase the power generated at predictable rates that are typically lower than their utility’s retail electricity rates. This financing model has helped address the barriers of high installation costs and accelerated adoption of solar energy.
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 key trends:
One of the major trends driving the solar lease service market growth is the increased focus on digitalization. Solar lease service providers are adopting AI, IoT, and cloud-based technologies to remotely monitor solar panel performance, enable automated operation and maintenance, and assist with predicting output. This is helping improve operational efficiencies, detect faults early, and optimize energy generation. Another trend is the rising preference for integrated energy storage with leased solar systems. Storage helps time-shift self-consumption of solar power and provide backup during outages, adding more value to customers. These storage-as-a-service plans are gaining popularity.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as high capital requirements and established brands pose a challenge for new players. However, growing awareness about renewable energy provides opportunities.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of various options. Buyers can choose from multiple players offering solar lease services.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key components such as solar panels, inverters have few global suppliers with differentiation in technology.
Threat of new substitutes: The threat of substitutes is low as there are limited direct substitutes for renewable sources of energy such as solar.
Competitive rivalry: The competitive rivalry is high among the key global players due to technological advancements and customized offerings.
Key Takeaways
The global Solar Lease Service Market is expected to witness high growth over the forecast period driven by supportive government policies and declining solar equipment costs.
Regionally, the Asia Pacific region dominates the market currently due to the presence of leading manufacturers and high rooftop solar installations in countries like China and India.
Key players operating in the Solar Lease Service Market include 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. SunPower Corporation is a leading player dominating the market with wide global presence and cutting-edge panel technology.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
