Solar Engineering, Procurement & Construction Market - Global Forecast 2025-2030

The Solar Engineering, Procurement & Construction Market size was estimated at USD 134.83 billion in 2024 and expected to reach USD 147.90 billion in 2025, at a CAGR 10.27% to reach USD 242.51 billion by 2030.

The solar engineering, procurement, and construction (EPC) industry in the United States has matured into a critical backbone for the nation’s clean energy transition. With solar installations spanning from utility-scale arrays to distributed rooftop systems, EPC providers serve as the linchpin that transforms conceptual designs into operational assets. Against a backdrop of evolving policy incentives and technological advancements, companies are broadening their scope of services to include integrated offerings that span feasibility assessments through commissioning and ongoing operations.

In recent years, the industry’s strategic context has been shaped by heightened collaboration across stakeholders, including project developers, financiers, original equipment manufacturers, and grid operators. This convergence has spurred an accelerated pace of project delivery, underpinned by sophisticated project management methodologies and digital tools. As competition intensifies, leading EPC firms are proactively reshaping their value propositions by strengthening supply chain resilience and embedding advanced analytics into every phase of the project life cycle.

The solar EPC sector is undergoing a profound transformation driven by a convergence of regulatory frameworks, capital market innovations, and technological breakthroughs. Federal incentives and state-level renewable portfolio standards have increasingly aligned to lower the hurdle rate for solar investments, catalyzing the adoption of storage-augmented PV systems. Meanwhile, digitalization has revolutionized engineering and construction workflows, with cloud-based design platforms and AI-enabled predictive maintenance redefining efficiency benchmarks.

Simultaneously, the emergence of new financing structures-ranging from green bonds to community solar subscription models-has broadened access to project capital. EPC firms are now partnering with financial institutions on novel risk-sharing arrangements, which has enabled more aggressive bidding on turnkey contracts. In parallel, advances in modular construction and standardization have compressed project timelines and reduced labor intensity. As such, the industry is shifting from a commodity-driven model toward a service-oriented paradigm, where value is measured in lifecycle performance rather than upfront cost alone.

The landscape of U.S. solar EPC has been materially affected by safeguard and trade measures enacted under Section 201 of the Trade Act of 1974, which have influenced the cost basis of crystalline silicon photovoltaic (CSPV) components. From February 7, 2024, through February 6, 2025, the Section 201 tariff stood at 14.25% on CSPV cells and modules imported from covered nations above the 5 gigawatt annual quota, reflecting a calibrated approach to balancing domestic manufacturing growth against supply security. As of February 7, 2025, the ad valorem rate will step down to 14% and remain in effect until February 6, 2026, at which point the safeguard measure is slated to expire.

In parallel, the Biden administration’s expansion of the annual tariff-rate quota for solar cells from 5 GW to 12.5 GW, effective August 2024, has provided relief for large-scale project pipelines that rely on foreign-sourced wafers and cells. However, the concurrent rescission of the bifacial module exemption, announced in May 2024, reintroduced tariffs on panels that capture irradiance on both sides, leading to renewed price pressures for utility-scale developers. These dynamics have compelled EPC contractors to adjust procurement strategies, hedging import exposure through incremental investments in domestic module assembly facilities.

Beyond Section 201, antidumping and countervailing duty investigations continue to shape the supply chain, particularly for polysilicon and quartz feedstock sourced from China. On January 1, 2025, tariffs on Chinese-origin solar wafers and polysilicon increased from 25% to 50%, with tungsten products rising from 0% to 25% to curb circumvention practices. Collectively, these measures have driven up effective landed costs for critical PV inputs, leading to modest project timeline extensions as developers renegotiate contracts and secure alternative suppliers. Yet the enforced premium on offshore materials has also stimulated capital flows into U.S. manufacturing expansions, underscoring the trade-off between short-term cost escalation and long-term supply chain resiliency.

The U.S. solar EPC market is intricately segmented by service type, solar technology, installation configuration, mechanical tracking systems, project capacity tiers, and end-use applications. This multifaceted segmentation ensures that providers offer highly customized solutions across every project dimension. For instance, construction services span civil work, commissioning, electrical installation, and project management, enabling seamless on-site execution. Meanwhile, engineering offerings encompass feasibility studies, site survey and assessment, structural and electrical engineering, and advanced design and modeling to optimize system architecture and performance.

In parallel, the adoption of photovoltaic technologies-ranging from monocrystalline and polycrystalline silicon to thin film and concentrated solar power-has diversified the technology stack available to project stakeholders. Installation preferences further bifurcate the market into floating, ground-mounted, and rooftop systems, each presenting unique civil, mechanical, and electrical challenges. Tracker technologies introduce an additional layer of specialization, with dual-axis, single-axis, and fixed-tilt options tailored to land availability, irradiance profiles, and cost-effectiveness objectives. Moreover, capacity segmentation-across small-scale projects up to 1 MW, medium-scale arrays between 1 and 10 MW, and large-scale installations exceeding 10 MW-aligns resource allocation with project financing structures and off-taker requirements.

Finally, end-use segmentation delineates commercial, industrial, residential, and utility applications. Within the commercial sector, tailored solutions address the distinct needs of hotels and resorts, office parks, and retail and shopping complexes. These differentiated market segments drive strategic decision making for EPC firms, guiding resource deployment, technology partnerships, and capital investment priorities.

Regional dynamics continue to dictate the pace and character of solar EPC deployment across the globe, reflecting variations in regulatory regimes, grid infrastructure readiness, and investor appetites. In the Americas, the United States leads with robust policy support and private sector engagement, while Latin American markets pursue hybrid renewable portfolios to enhance energy security and attract foreign capital. Meanwhile, Canada’s focus on indigenous and remote-community electrification fosters niche opportunities for EPC providers with expertise in off-grid solar plus storage implementations.

Across Europe, the Middle East, and Africa, regulatory harmonization under the European Green Deal and GCC decarbonization strategies has spurred large-scale solar park developments and off-take agreements. African markets are increasingly integrating decentralized solar solutions to improve rural electrification, with multilateral financing institutions underwriting risk in frontier territories. In the Asia-Pacific region, China and India dominate capacity additions, leveraging local manufacturing ecosystems and ambitious national targets. Southeast Asia, Australia, and South Korea further illustrate diverse EPC corridors, as governments incentivize solar-plus-storage projects to stabilize grids and accelerate coal-to-clean power transitions.

A handful of leading EPC companies have established formidable footprints through scale, execution excellence, and technological differentiation. First Solar, with its proprietary thin-film panel technology and integrated project delivery model, continues to set benchmarks for large-scale solar farm deployments. SunPower leverages its high-efficiency monocrystalline modules and residential network to capture value in the distributed segment, while Black & Veatch distinguishes itself in complex grid interconnection and storage integration projects.

Other notable players include Bechtel, whose global engineering pedigree underpins utility-scale and multibillion-dollar infrastructure contracts, and Mortenson, which excels in modular construction and fast-track delivery for public and private clients. Additionally, JinkoSolar’s vertically integrated supply chain and aggressive capacity expansion afford competitive pricing for project developers. Collaboration among these companies and specialized component suppliers is increasingly common, as firms form joint ventures to de-risk large portfolios, pursue new geographic markets, and co-develop novel service offerings.

Industry leaders must adopt a multi-pronged strategy to navigate evolving market conditions and secure competitive advantage. First, investing in digital twin technology and AI-enhanced analytics will streamline project planning and predictive maintenance, reducing unplanned downtime and optimizing asset yields. Second, fostering strategic alliances with module manufacturers and storage integrators can mitigate supply chain disruptions and accelerate turnkey delivery commitments.

In addition, companies should explore diversified financing mechanisms-such as yieldcos, green bonds, and securitized cash flows-to lower the weighted average cost of capital and expand access to institutional investors. Concurrently, embedding sustainability reporting and circular economy principles into project execution will satisfy ESG mandates and strengthen corporate reputation. Finally, focusing on workforce development, including cross-disciplinary training in electrical, civil, and data science domains, will ensure that the talent pipeline aligns with the sector’s technical and operational demands.

This market research leverages a rigorous, multi-stage methodology that integrates primary interviews, secondary data analysis, and proprietary modelling. Primary research encompassed over 150 in-depth discussions with project developers, EPC executives, technology suppliers, and financial sponsors to capture firsthand insights into market drivers, execution challenges, and emerging best practices. Secondary research involved a systematic review of trade publications, policy documents, technical white papers, and industry databases to validate trends and quantify key performance indicators.

Quantitative analysis was performed using statistical and econometric techniques to identify correlations between tariff shifts, incentive structures, and deployment rates. A bottom-up approach was employed to forecast project timelines and cost trajectories, while sensitivity analyses assessed upside and downside scenarios. All data sources underwent a triage process for reliability, with conflicting inputs reconciled through an expert review panel. The resulting research framework ensures transparency, repeatability, and actionable intelligence for stakeholders across the EPC value chain.

The solar EPC sector in the United States is at an inflection point, shaped by transformative policy incentives, rapidly maturing technology platforms, and evolving trade landscapes. Market dynamics underscore a shift toward integrated service models that prioritize lifecycle performance, supply chain resilience, and ESG compliance. The cumulative impact of Section 201 and related trade measures has elevated component costs in the near term, yet it has simultaneously catalyzed domestic manufacturing investment and long-term industry stability.

Segmentation analysis highlights diverse opportunities across service types, technology classes, installation formats, tracker systems, capacity tiers, and end-use applications. Regional insights underscore that despite global divergences, convergent trends in digitalization, financing innovation, and sustainability are universal drivers. Leading EPC companies are differentiating through strategic partnerships, advanced analytics, and project delivery excellence. To navigate this dynamic environment, industry leaders must adopt a forward-looking posture, prioritizing technological agility, financial innovation, and robust talent development. This holistic perspective will illuminate pathways to optimized returns, accelerated deployment, and sustained competitive differentiation.

Are you ready to gain unparalleled strategic insight into the rapidly evolving solar EPC market? Reach out to Ketan Rohom, Associate Director of Sales & Marketing, to secure a comprehensive market research report that equips you with data-driven analysis, actionable recommendations, and exclusive trend forecasts. Let our tailored research empower your team to optimize investment decisions, accelerate project execution, and strengthen competitive positioning in the United States and beyond.

Connect with Ketan today to unlock the full potential of the solar EPC landscape and stay ahead of critical market shifts.