Solar PV Microgrid Market Size - By Connectivity (Grid Connected, Off Grid), By Storage Device (Lithium-ion, Lead Acid, Flow Battery, Flywheels), By Grid Type, By Application, 2025 - 2034

Solar PV Microgrid Market Size

The global solar PV microgrid market size was valued at USD 3.2 billion in 2024 and is estimated to grow at a CAGR of 20.3% from 2025 to 2034. The declining cost of solar PV technology, coupled with advancements in battery storage systems, which allow users to generate electricity on-site and store excess energy for later use, will foster product adoption. The rising need for energy security and resilience, particularly in regions vulnerable to power outages or in areas where grid infrastructure is unreliable, will propel product demand.
 

Increasing need to provide electricity to remote and off-grid communities, especially in developing regions of Africa, Asia, and Latin America, will uplift solar PV microgrid adoption. According to Statista, in 2022 approximately 81% of urban residents in Sub-Saharan Africa had access to electricity, but only around one-third of the rural populace was electrified. This escalates product demand as a cost-effective and scalable solution where extending the central grid is economically unviable.
 

Growing government policies and regulatory frameworks promoting renewable energy integration are also playing a crucial role in product growth. Incentives such as subsidies, tax benefits, feed-in tariffs, and funding support from international agencies and development banks encourage microgrid deployment. Additionally, initiatives aligned with sustainable development goals (SDGs), especially SDG 7 (Affordable and Clean Energy), have accelerated investment in solar microgrid infrastructure.
 

Companies are at the forefront in developing and launching new product lines to overcome electricity demand using renewable power sources. In September 2024, Honeywell Automation India Ltd commissioned a Battery Energy Storage System microgrid for the SECI Lakshadweep Islands project, marking India's first on-grid solar project integrated with BESS for renewable energy distribution with a 1.7 MWp of solar capacity and 1.4 MWh of energy storage. Additionally, technological advancements in solar PV modules, energy storage systems, and smart grid solutions aimed at enhancing the efficiency and reliability of microgrids will foster business trends.
 

The reimposition of Trump-era tariffs on imported solar components will increase the cost of solar PV microgrid projects in the U.S., particularly those relying on low-cost panels from Asia. This is expected to slow deployment by raising capital expenditure and impacting project economics. Smaller and community-based microgrid initiatives could be especially affected due to tighter budgets. However, the tariffs are also anticipated to encourage domestic manufacturing, fostering a resilient supply chain and reducing dependency on imports.
 

Solar PV Microgrid Market Trends

• Increasing government initiatives, such as tax credits, grants, and subsidies to promote solar energy as a power source, will create lucrative opportunities for product adoption. Furthermore, many countries, particularly in North America, Europe, and Asia Pacific region, have introduced policies to incentivize the deployment of renewable energy systems, leading to business growth. Additionally, regulatory frameworks aimed at decentralizing power generation and promoting renewable energy solutions will further facilitate product adoption.
   
• Rising companies' investments in developing power sources in underdeveloped areas to support the electricity demand will augment the market trend. In September 2024, a solar-plus-storage microgrid project was built by Huawei Digital Power in Red Sea New City, Saudi Arabia. After a year of steady operation, the facility has produced more than 1 TWh of clean energy. Additionally, increasing focus on energy security and climate resilience will stimulate the product growth.
   
• Global shift towards renewable energy sources to mitigate climate change and meet carbon reduction goals will boost the integration of renewable energy into power systems, leading to business growth. Furthermore, continuous development of technologies such as advanced inverters, battery energy storage systems (BESS), and control systems to make microgrids more efficient and reliable will augment product penetration.
   
• Eminent players’ growing focus on providing renewable power sources to rural communities will augment the business scenario. By the end of 2024, Suriname will begin construction of hybrid solar microgrids aimed at electrifying 25 villages. Each system includes solar panels, battery storage, and a backup diesel generator. Increasing private sector involvement as well as public-private partnerships are further expanding the innovation, financing, and scalability of solar PV microgrids, hence improving the industry statistics.
   

Solar PV Microgrid Market Analysis

• Based on the grid type, the market is segmented into AC, DC and hybrid categories. The solar PV microgrid market was valued at USD 2 billion, USD 2.5 billion, and USD 3.2 billion in 2022, 2023, and 2024, respectively.
   
• Hybrid is anticipated to grow by more than USD 3 billion by 2034 owing to enhanced energy security and reliability. Increasing adoption of cost-efficient and fuel-saving grid solutions, especially in remote areas will boost the product adoption. Furthermore, rising pressure on industries, governments, and communities to meet their sustainability goals is set to stimulate product adoption by offering reduced emissions while maintaining grid stability.
   
• The DC segment holds a market share of 20.2% in 2024 due to its higher energy efficiency and reduced conversion losses. Companies' growing interest in expanding DC microgrid adoption in rural areas will complement the grid growth. In April 2022, Solarworx deployed its DC microgrid technology in Zalla, near Maroua in northern Cameroon. In conjunction with Solkamtech SARL, the system now powers 25 households and will add another 30 by the end of the year. Furthermore, the reduced number of components needed to drive system design and equipment costs will augment the market growth.
   
• The AC segment was valued at 1.6 billion in 2024 on account of its compatibility with existing infrastructure and widespread appliance use. Most household and commercial electrical devices operate on AC, making AC microgrids a practical choice for seamless integration without requiring conversion equipment. The configuration of AC systems enables easier interconnection to the grid as well as scalability, whether in on-grid or off-grid setups. This flexibility facilitates rural electrification and urban backup systems, thus augmenting market opportunities.
   

• Based on connectivity, the solar PV microgrid market is segmented into grid connected and off grid. The grid connected segment held 71.8% market share in 2024.
   
• Grid connected is set to grow in the forecasted period on account of its enhanced energy security and stability. Increasing demand for connectivity offering cost savings through both reduced energy bills and better energy management will propel grid-tied adoption. Furthermore, rising integration of advanced energy storage systems into grid-connected microgrids to improve their reliability and flexibility will foster product penetration.
   
• Off grid segment is expected to grow at an incremental rate of 19.5% by 2025 - 2034 driven by the need to provide reliable electricity in remote and underserved areas where grid extension is economically or technically unfeasible.
   
• Companies are extending their support in rural locations to escalate solar microgrid adoption. The Powerchina Corporation in June 2024 finished the second segment of the Suriname Village solar microgrid project which integrates off-grid solar with battery storage and diesel generator backup. This system encompasses 34 forest villages and has an estimated annual energy output of 5,314 MWh. Furthermore, programs from the government, international aid, and public-private initiatives enhance the utilize of off-grid solar, particularly within developing areas.
   

• The U.S. market was valued at USD 400 million, USD 470 million, and USD 500 million in 2022, 2023, and 2024, respectively. As of 2024, North America holds a market share of 20.8%, which is expected to improve further by 2034.
   
• The U.S. solar PV microgrid market is expected to show significant growth by 2034 driven by the need for reliable, clean, and affordable energy in remote and underserved regions. Companies are completing the solar microgrid projects and are planning to invest in the upcoming projects, driving the industry landscape. In April 2024, Enel North America and Eaton finished constructing Puerto Rico's largest clean energy microgrid at Eaton's circuit breaker facility located in Arecibo. Construction was carried out in phases integrating a 5 MWac solar array, 1.1 MW battery, and additional onsite generators to optimize energy resilience and sustainability.
   
• Asia Pacific solar PV microgrid market is anticipated to grow by more than USD 13.6 billion by 2034. Rapid urbanization in countries such as India, China, and Indonesia necessitates the need for sustainable energy solutions leading to product demand. Increasing government implementation of supportive policies and incentives to promote renewable energy adoption will create lucrative opportunities for the business landscape.
   
• Additionally, the spur towards decentralization of energy generation, especially in the remote areas where extending the grid is economically impractical, will enhance the product development. In November 2024, Tencent integrated a hybrid renewable microgrid into its data center in China. The system’s nominal power is 10.99 MW and its annual energy output is projected to be 14 million kWh.
   
• Europe solar PV microgrid market is set to grow at a CAGR of 12.7% by 2034. Increasing government implementation of supportive policies and incentives to promote renewable energy adoption will create lucrative opportunities for the business landscape. Technological advancements, declining solar and battery costs, and increasing demand for grid stability in remote and island communities also contribute to market trend. Moreover, solar PV microgrids support electrification, reduce reliance on fossil fuels, and enable efficient integration of renewables into local energy systems across Europe, leading to industry growth.
   

Solar PV Microgrid Market Share

• The top 5 companies, including Caterpillar, Schneider Electric, Tata Group account for around 33.2% market share. These firms are investing in research and development crucial for enhancing the efficiency and reliability of solar PV systems. Companies are focusing on advanced energy storage solutions, smart grid technology, and integration with IoT (Internet of Things) devices.
   
• Key players are forming partnerships with local governments, utilities, and technology firms to develop and implement microgrid projects. Furthermore, companies are expanding into emerging markets where demand for renewable energy is increasing. They are diversifying their product offerings to include hybrid systems that integrate solar with other renewable sources, enhancing energy resilience and reliability.
   

Solar PV Microgrid Market Companies

Eminent players operating in the solar PV microgrid industry are:

• BoxPower
• Caterpillar
• Coldwell Solar
• EnSync Energy Systems
• G&W Electric
• Megamax Solar
• Schneider Electric
• SepiSolar
• Tata Group
• Team Sustain
   

• Schneider Electric, a leader in the solar PV microgrid market, has revealed a notable rise in its 2024 third-quarter sales, with organic growth hitting 8% year-over-year to reach a record USD 9.7 billion. At the 2024 Alliance for Rural Electrification Energy Access Investment Forum, Schneider Electric introduced Villaya Flex, a microgrid solution designed to meet the energy needs of communities. The system aims to support the shift toward clean, self-sufficient power while addressing current energy challenges.
   
• In 2024, Caterpillar Inc. reported sales and revenues of USD 64.8 billion, maintaining its global position. The company is actively advancing solar PV microgrid solutions to deliver reliable, efficient, and sustainable energy across various sectors, including mining, remote communities, and industrial facilities.
   

Solar PV Microgrid Industry News

• In January 2024, Royal Johannesburg and Kensington Golf Club in South Africa collaborated with Solarise Africa, Hooray Power, and Caracal Engineering, has unveiled the largest solar microgrid at a golf club in the country. The project integrates renewable energy into the club’s infrastructure, significantly reducing both noise pollution and carbon emissions typically generated by conventional power sources. This solar initiative demonstrates the club commitment to environmental sustainability and provides a more reliable energy source, protecting operations from external power disruptions.
   
• In April 2023, ESS Tech, Inc. is poised to provide three Energy Warehouse systems to Coldwell Solar, a prominent player in California's renewable energy landscape. These systems are destined for a solar-plus-storage microgrid at three renowned wineries in Mendocino County: Scharffenberger Cellars, Roederer Estate, and Domaine Anderson. Coldwell Solar worked closely with the wineries to craft a system that meets their specific requirements, aiming for the microgrid to run by late 2023.
   

The Solar PV Microgrid market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “USD Billion & MW” from 2021 to 2034, for the following segments:

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Market, By Connectivity

• Grid connected
• Off Grid

Market, By Application

• Healthcare
• Educational institutes
• Military
• Utility
• Industrial/ commercial
• Remote
• Others

Market, By Storage Device

• Lithium-ion
• Lead acid
• Flow battery
• Flywheels
• Others

Market, By Grid Type

• AC
• DC
• Hybrid

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
  • Russia
  • Spain
  • Italy
  • Denmark
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
• Middle East and Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina
  • Chile