Rooftop Wind Energy Market Size To Rise USD 296.57 Mn By 2032

Published Date : 20 Dec 2023

The global rooftop wind energy market size exceeded USD 133 million in 2022 and is expected to rise to USD 296.57 million by 2032, growing at a CAGR of 8.4% during the forecast period.

Rooftop Wind Energy Market Size and Growth Rate From 2023 To 2032

Market Overview

The renewable energy business sector dedicated to the design, installation, and management of wind energy systems on building rooftops is known as the rooftop wind energy market. Rooftop wind energy systems are intended to capture wind power in urban or suburban contexts using the available rooftop space of residential, commercial, or industrial buildings. This is in contrast to traditional large-scale wind farms, which are erected in open areas. Small-scale wind turbines installed on rooftops, together with related power electronics, control systems, and occasionally energy storage options, are the main parts of rooftop wind energy systems. By producing power at the point of consumption, these systems hope to supply the building where they are installed with locally produced renewable energy.

Rooftop wind energy has been significantly fueled by the growing demand for renewable energy sources due to environmental concerns and the desire to cut carbon emissions. The efficiency and cost of wind turbines have increased due to technological advancements, especially in small-scale and distributed wind turbines appropriate for rooftop installations. The market for rooftop wind energy can be significantly improved by government subsidies, tax credits, and other financial incentives offered to encourage the use of renewable energy. Rooftop wind energy systems are a practical way to capture wind energy without needing big open expanses in crowded urban settings where traditional large-scale wind farms have limited room.

  • In October 2023, the $7 million equity investment was obtained by Hyderabad-based rooftop solar solution company Freyr Energy, which stated that the funds would be utilized to promote solar energy adoption among Indian retail customers. EDFI Electrifi, an impact investment facility funded by the European Union and run by the EDFI management firm, spearheaded the funding round with a $3 million investment.
  • In May 2023, Octopus Energy, a London-based company, stated that it would invest $1.8 billion in the Asia-Pacific energy industry to expedite the switch to clear energy. The business declared it would put $1.4 billion into wind and solar energy. Projects involving renewable energy will receive half of the funding.

Regional Snapshot

North America holds the largest share of the rooftop wind energy market. Interest in distributed energy generation—which includes wind energy devices installed on rooftops—has grown. These technologies lower transmission losses and boost energy efficiency by enabling energy production at or close to the point of consumption. Rooftop wind installations are becoming more and more feasible thanks to developments in wind turbine technology, including smaller and more effective designs.

Rooftop wind energy systems are frequently considered for commercial and urban settings where conventional ground-based wind farms may not have enough room. The sporadic nature of wind, site-specific issues, and potential regulatory barriers are obstacles facing the rooftop wind energy sector. North America has several key players in the rooftop wind energy market, including Vestas, Dongfang Electric Corporation, Sinovel, Goldwind, ENERCON GmbH, Suzlon Group, EDF Renewable Energy, and American Electric Power Company, Inc.

  • In July 2023, to construct expansions, new blade molds, and production equipment at its two Colorado facilities, Vestas intends to invest $40 million. This will create the infrastructure required to launch the V163-4.5 MW turbine and sustain local subcomponent manufacturing. Vestas plans to bring in between 800 and 1,000 local workers to help with the nacelle and blade plants' manufacturing operations.
  • In November 2023, a Canadian energy business, Enbridge Inc., funded the 749-MW DC/577-MW AC Fox Squirrel solar project in Ohio on behalf of EDF Renewables North America, a French power company EDF division. Enbridge will fund the first phase with USD 149 million (around EUR 137 million). It will invest in the other two phases in 2024 if specific requirements are satisfied.

Rooftop wind energy markets in the US may have different sizes, and several variables, including the state of the economy, government backing, and technological developments, influence their expansion. Rooftop wind energy systems have the potential to be integrated with other technologies for effective energy management as part of larger innovative city projects. Fostering acceptance and uptake of rooftop wind energy can be aided by raising public knowledge and educating people about its advantages. Technological developments in small wind turbines, such as more effective and silent designs, may expand the rooftop wind energy industry. Federal, state, and municipal incentive programs and regulations can significantly impact how quickly the rooftop wind energy market grows.

Initiatives for renewable energy have received backing from the Canadian government, and different provinces may have their laws and subsidies to promote the installation of rooftop wind-generating systems. Rooftop wind installations are becoming more and more feasible thanks to developments in wind turbine technology, including smaller and more effective designs.

In urban and suburban settings where space may be restricted and traditional wind farms are impractical, rooftop wind turbines are especially well-suited. The unpredictability of wind resources in urban environments, possible aesthetic difficulties, and legal and permitting issues are some of the challenges of rooftop wind energy. As part of Canada's attempts to shift to a more sustainable energy mix, rooftop wind energy can help lower greenhouse gas emissions and lessen reliance on conventional energy sources.

  • In December 2022, Manulife Investment Management (Manulife IM) invested $100 million on behalf of investors in Power Flex, a leading provider of intelligent solar, storage, and electric vehicle (EV) charging solutions for commercial and industrial customers. Power Flex is an affiliate of EDF Renewables North America.
  • In August 2023, despite a 43% year-over-year rise in solar investment to US$239 billion in the first half of 2023, renewable energy investment was still far short of what was needed to achieve the net zero target. Two-thirds of all global investments in renewable energy for the first half of 2023 went toward large- and small-scale solar systems, with a total investment of US$239 billion, according to BloombergNEF's 2H 2023 Renewable Energy Investment Tracker report.

Rooftop Wind Energy Market Report Scope

Report Coverage Details
Market Revenue in 2023 USD 143.51 Million
Projected Forecast Revenue by 2032 USD 296.57 Million
Growth Rate from 2023 to 2032 CAGR of 8.4%
Largest Market North America
Base Year 2022
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa


Market Dynamics

Drivers

Reduced carbon footprint

A renewable energy source, rooftop wind energy uses the wind's force to create electricity. Wind energy contributes to a cleaner energy mix because it operates without emitting greenhouse gases, unlike fossil fuels. In urban environments, rooftop wind turbines can be positioned strategically to support dispersed power. As a result, less electricity must be transmitted across long distances, reducing energy losses and improving system efficiency. The carbon footprint of wind turbine production can be reduced using recyclable and sustainable materials in their fabrication.

Urban integration

Rooftop wind turbines can effectively utilize the existing vertical space in cities with limited land. The ability to put small-scale, lightweight wind turbine systems on rooftops without requiring significant structural alterations has increased because of technological advancements in this field.

Restraints

Wind resource assessment

Acquire past wind speed information for the particular place. Meteorological stations, weather databases, or on-site anemometers are sources of this information. To comprehend the predominant wind patterns, gather wind direction data. This aids in wind turbine alignment for maximum energy generation. Evaluate the degree of turbulence to understand the differences in wind speed. Rooftop wind turbine performance and structural integrity can be impacted by high turbulence.

Installation and maintenance costs

The wind turbine's size, capacity, and technology will all affect how much it costs. In general, smaller rooftop wind turbines cost more per power unit than more giant utility-scale turbines. Expenses for the wiring, inverters, and other electrical parts needed to connect the wind energy system to the building's electrical system. Regular inspections are required to ensure the system is operating correctly. This could entail examining the electrical parts, the tower's structure, and the turbine blades. It is crucial to clean the turbine blades regularly to eliminate dirt and debris.

Opportunities

Urban and commercial applications

Governments promote rooftop wind systems and other renewable energy sources by providing incentives and legislation in many regions. By increasing public awareness of renewable energy sources and promoting sustainable habits, installing rooftop wind turbines in commercial spaces can have an educational impact. Rooftop wind turbines can provide emergency electricity during blackouts or other power shortages. Community power programs, in which several buildings or businesses work together to generate and share renewable energy, can include rooftop wind energy installations. Rooftop wind energy can help achieve the sustainability standards that are becoming increasingly important in many urban locations.

Environmental awareness

With the help of rooftop wind turbines, electricity can be produced without releasing greenhouse gases or other pollutants. This helps to lessen reliance on fossil fuels and mitigate the effects of climate change. Rooftop wind energy systems can reduce the carbon footprint of conventional grid electricity by producing electricity on-site and minimizing energy losses during transmission and shipping. Urban surroundings can incorporate rooftop wind turbines, making use of the area that cities have available to produce sustainable energy. The sustainability objectives of urban planning and development may benefit from this.

Recent Developments

  • In March 2023, Greece's Ministry of Environment and Energy announced A new $215.3 million subsidy scheme for solar installations and small storage systems in the residential and agricultural sectors. It is possible to install 10.8 kW of PV capacity and 10.8 kWh of battery storage in households and farming enterprises.
  • In May 2023, The Ikea microgrid is made up of a 3 MW/3.45 MWh battery energy storage system supported by Planet Ark Power's eleXsys energy management system for surplus export and a 1.2 MW rooftop solar system with 3,024 PV panels placed across the furnishings retailer's large Adelaide store. The South Australia-based energy infrastructure business Epic Energy will own and run the USD 4.3 million solar and storage microgrid designed and constructed by Planet Ark Power.

Key Market Players

  • Vestas Wind Systems A/S
  • Siemens Gamesa Renewable Energy
  • Nordex SE
  • General Electric Company (GE Renewable Energy)
  • Envision Energy
  • Suzlon Energy Limited
  • Enercon GmbH
  • Goldwind Science & Technology Co., Ltd.
  • Siemens AG
  • Bergey Windpower Co.
  • XZERES Wind Corporation
  • ABB Ltd.
  • Northern Power Systems
  • WindEnergy7 LLC
  • UGE International Ltd.

Market Segmentation

By Technology

  • Horizontal axis wind turbines (HAWTs)
  • Vertical axis wind turbines (VAWTs)

By Capacity

  • Micro-wind turbines (less than 10 kW)
  • Small wind turbines (10-100 kW)
  • Medium wind turbines (100-500 kW)

By Installation

  • On-grid systems
  • Off-grid systems

By End-use

  • Residential
  • Commercial
  • Industrial applications

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