High expectations for the U.S. solar roofing market in 2024 may have been tempered by sustained high interest rates across the country and some rate declines in key states. Yet, roofers are still getting serious about solar.

“You can get very passionate about solar because you want to protect the environment. You can get passionate about it because you know it’s the future and want to be on the cutting edge. I’m excited about it because it’s a reason for people to replace their roofs prior to them needing to be replaced,” said Ken Kelly, founder of Kelly Roofing in Bonita Springs, Fla.

Kelly, RC’s 2019 Residential Roofing Contractor of the Year, was among the first roofing contractors in the country to install a Tesla Solar Roof. He recently retired from the company and is now consulting roofing contractors on various business models, including solar.

“It’s an economic driver for our industry as a whole, and if you’re not playing in that market, you’re either going to be out of the market, or someday you’ll be forced to, and you’ll be behind your competition,” he said.

Recent data from the Solar Energy Industries Association (SEIA) appear to validate the optimism. While the residential solar segment declined by double digits compared to 2023, commercial solar installations are slated to grow by 8%. The SEIA projects industry-wide annual growth will average 4% from 2025 to 2029, presenting myriad opportunities for roofing contractors.

Here are five things to know about the state of the solar roofing market:

1. The residential solar roofing segment is off to a slow start in 2024. Just seven states experienced year-over-year growth in solar capacity as financing interest rates remained high, and the SEIA reported slumping sales in Q2.
2. Of those states making gains, Texas was the leading state for solar installations during the first half of 2024, with 5.5 gigawatts of capacity added to the market. That’s nearly double the next state, Florida (2.9 gigawatts).
3. Perhaps reflecting industry trends, the number of residential roofers involved with solar dropped from 20% to 16% in RC’s Annual State of the Industry survey. Still, more than half of contractors said they expected solar sales to rise this year and projected increases over the next three years.  
4. Though only 7% of homeowners surveyed by RC indicated they currently have solar panels on their roofs, roughly 35% of all homeowners said they’re interested in both solar panels and solar shingles.
5. Proposed tariffs on imported solar cells could impact the marketplace this year and beyond. While still speculative, the SEIA said proposed tariffs could result in a 4% reduction in residential solar installations.  

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