Solar thermal DHW market seen topping $5.98 billion by 2030

The global market for solar thermal systems used to heat domestic water is projected to grow from $4 billion in 2025 to $5.98 billion by 2030, according to a new report from The Business Research Company. The forecast points to stronger demand from green building standards, rising energy prices and broader adoption of efficient home heating systems.

Why it matters: - Solar thermal systems for domestic hot water can cut household energy bills by using sunlight instead of purchased electricity or fuel. - The market’s projected growth signals continued demand for lower-carbon home heating as energy costs and sustainability rules rise. - Asia-Pacific is expected to remain the largest and fastest-growing regional market, shaping where suppliers and installers focus investment.

What happened: - The Business Research Company released its "Solar Thermal For Domestic Hot Water (DHW) Market Report 2026 – Market Size, Trends, And Global Forecast 2026-2035." - The report puts the global solar thermal DHW market at $4 billion in 2025. - The market is forecast to reach $4.33 billion in 2026. - The report projects the market will cross $5.98 billion by 2030. - The forecast implies a CAGR of 8.2% from 2025 to 2026 and 8.4% through 2030.

The details: - Solar thermal DHW systems capture sunlight through collectors and store the thermal energy to heat water for bathing, cooking and cleaning. - The report links past growth to lower solar collector costs, greater reliance on fossil fuels, government incentives, urban residential construction and rising consumer awareness of renewable hot water options. - The forecast cites wider adoption of electrified heating systems, better thermal storage efficiency, hybrid solar heating in new buildings, stricter residential energy-efficiency rules and evacuated tube collector advances. - The report highlights several trends, including solar thermal systems paired with auxiliary heating, thermosiphon passive water heaters, rooftop retrofits in existing homes, high-efficiency vacuum tube collectors and modular plug-and-play solar hot water kits. - Green building certifications are helping drive adoption because developers want systems that support sustainability and energy-efficiency targets. - In July 2024, the Green Building Council said more than 46,000 residential projects earned LEED certification, up nearly 5% in new registrations from 2023. - Rising energy prices are also supporting demand. Eurostat said average household electricity prices in the European Union reached $31.21 (€28.9) per 100 kWh in the first half of 2023, up from $27.32 (€25.3) a year earlier. - Higher disposable income is making the upfront cost of solar water heating easier for households to absorb. - Statistics Iceland reported 6.6% growth in household disposable income in the second quarter of 2024 versus the prior year. - The report covers Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, and the Middle East and Africa.

Between the lines: - The market outlook reflects a mix of policy pressure and consumer economics, not just clean-energy preference. - Green certifications and energy-price inflation are pulling in the same direction, making solar hot water more attractive for both new construction and retrofits. - The emphasis on plug-and-play kits and auxiliary heating suggests suppliers are trying to reduce installation friction and address variable solar supply.

What's next: - The market is likely to benefit from more residential electrification, tighter efficiency standards and continued product improvements in collector and storage technologies. - Asia-Pacific’s lead suggests regional demand will remain a key indicator for the sector’s pace through 2030. - The report is available as a free sample and as the full market report.

The bottom line: - Solar thermal DHW is moving from a niche efficiency play to a broader home-heating market, with growth tied to cost savings, regulation and greener building standards.