Third-party ownership (TPO) of non-residential projects in the United States increased to 72% market share in 2024, up from 69% in 2023, according to the latest “U.S. Commercial Solar Competitive Landscape” report from Wood Mackenzie.
The report projects the TPO segment will continue to lead commercial and community solar financing, reaching 74% market share by 2026 before moderating to 62% by 2029. According to Wood Mackenzie, Nexamp held the largest TPO market share in 2024 (7%), followed by Summit Ridge Energy (6.5%) and Standard Solar (5.3%).
“The maturation of the tax credit transferability market is driving growth in third-party ownership,” said Amanda Colombo, Research Associate at Wood Mackenzie. “Transferable tax credits offer less complex, cheaper, and more flexible monetization options for TPO projects. Small and medium-scale project developers report that transferability has simplified third-party financing.”
Credit: Nexamp
The report also found that the overall U.S. commercial solar market set a new annual record in 2024, with 2.1 GWDC of new capacity installed nationwide. Key states like California, Maine and Illinois helped drive 8% year-over-year growth.
Looking ahead, Wood Mackenzie forecasts that over 11 GWDC of new commercial solar capacity will be added in the United States over the next five years. Rising electricity prices, growth in emerging markets and continued momentum from the Inflation Reduction Act are expected to be key drivers of installation growth.
“Emerging solar state markets across the country are experiencing a surge in installations, driven by favorable factors such as low development costs, untapped solar potential, and abundant available land,” said Colombo. “Notably, less established markets in the Midwest and Southeast regions are witnessing significant growth in commercial solar deployments.”
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