Third-Party Ownership of U.S. Non-Residential Solar Projects Climbs to 72% in 2024, Wood Mackenzie Reports

Third-party ownership (TPO) continues to dominate the U.S. non-residential solar sector, with its market share rising to 72% in 2024 from 69% in 2023, according to the newly released US Commercial Solar Competitive Landscape 2025 report by Wood Mackenzie.

The report forecasts that TPO will remain the leading model for financing commercial and community solar projects in the near term, projecting a peak market share of 74% by 2026. However, this share is expected to moderate to 62% by 2029 as direct ownership options grow in viability.

Wood Mackenzie identifies Nexamp as the market leader in TPO for 2024 with a 7% share, followed by Summit Ridge Energy at 6.5% and Standard Solar at 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.”

The report also highlights a milestone year for the U.S. commercial solar sector, with a record-setting 2.1 GWdc of new capacity installed in 2024—a year-over-year growth of 8%. Leading states such as California, Maine, and Illinois played a key role in this expansion.

Looking forward, Wood Mackenzie anticipates more than 11 GWdc of new commercial solar capacity will be installed across the U.S. over the next five years. Key growth drivers include rising electricity prices, the increasing prominence of emerging markets, and sustained policy support under the Inflation Reduction Act.

“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,” Colombo added. “Notably, less established markets in the Midwest and Southeast regions are witnessing significant growth in commercial solar deployments.”

The findings underscore the evolving dynamics of the commercial solar market and the increasingly central role of third-party financing in accelerating clean energy adoption across diverse regions.