Global solar PV installations reached a record 664 GW in 2025, up 12% YoY, as per Global Solar Market Outlook 2026-2030
China remained the largest market, while India overtook the US to become the 2nd largest globally
Analysts project an 8% decline for 2026, but expect global solar capacity to exceed 6.6 TW by 2030
Global solar PV installations reached a record 664 GW in 2025, according to SolarPower Europe’s Global Solar Market Outlook 2026–2030. The report notes that solar electricity generation last year was equivalent to nearly 5 years of LNG flows through the Strait of Hormuz, underscoring solar’s growing role in strengthening energy security, reducing reliance on fossil fuels, and shielding economies from fuel price volatility.
The 664 annual addition represents a 12% increase from the previous year, although it also reflects a continued slowdown from the rapid growth rates seen in recent years, including 32% in 2025.
Nevertheless, solar remained the largest contributor to new renewable energy capacity in 2025, accounting for 77% of global renewable additions. Solar generation rose to 2,778 TWh, supplying around 9% of the world's electricity demand. The global solar fleet surpassed 3 TW in early 2026, having tripled in size within 4 years.
China continued to dominate the market with 382 GW of new installations, representing 57% of global additions. India became the world's 2nd-largest solar market after installing 45.7 GW of solar capacity, a 49% year-on-year (YoY) increase, overtaking the US. The EU-27 added 67.2 GW, recording modest annual growth of 1%.
Pakistan imported more than 50 GW of solar modules over the past 5 years, driven mainly by households and small businesses seeking reliable and affordable electricity amid power outages and rising energy costs. However, only 3.7 GW was registered under the country's net-metering scheme in 2025, suggesting that a significant amount of solar capacity may be operating outside official records. The country is forecast to install 27 GW of cumulative rooftop PV capacity by 2030 (see Pakistan: Rooftop Solar Helps Tackle Fuel Supply Disruptions).
The year also saw record deployment levels and stronger adoption of solar-plus-storage systems in markets including India, France, and Saudi Arabia.
Australia, the regional focus country in the report, hosts one of the world’s most mature rooftop markets. Its cumulative solar PV capacity at the end of the year exceeded 45 GW, including 4.8 GW in 2025, with around 2.8 GW coming from rooftop solar. The country is also seeing rapidly growing battery storage capacity.
SolarPower Europe CEO Walburga Hemetsberger said the latest figures confirm that 'the solar age is firmly established', noting that solar continues to outperform other energy technologies. However, she warned that future growth will increasingly depend on how well solar can be integrated into power systems rather than simply on adding more capacity.
Hemetsberger said grid congestion, curtailment, and negative electricity price signals are emerging challenges in several markets. She called for greater investment in grids, battery storage, and other flexibility solutions to support continued deployment of renewable energy.
After years of uninterrupted expansion, global solar installations are forecast to decline by 8% in 2026 to around 612 GW under the report’s medium scenario. The expected contraction would be the first decline in more than 2 decades.
The report attributes the slowdown mainly to China, where installations are projected to fall by 24% following changes to market policies. While most other regions are expected to continue growing, China's market size means its performance has a significant impact on global figures.
According to Sonia Dunlop, CEO of the Global Solar Council (GSC), the industry remains on track to more than double global solar capacity by 2030. Achieving this growth, however, will require stable policy frameworks, faster permitting processes, modernized grids, and stronger investment conditions. The association demands that governments integrate solar into national energy security strategies and accelerate the deployment of battery storage.
Despite the expected dip this year, the report forecasts annual installations to recover from 2027 onward, reaching 689 GW in 2027, 742 GW in 2029, 804 GW in 2030, and 864 GW by 2030. Under the high scenario, annual solar installations in 2030 may also exceed 1.16 TW. Total global solar capacity is projected to grow to 6.6 TW by the end of the decade, with the potential to reach 7.6 TW under a higher-growth scenario.
Speaking on the industry's next phase, Michael Schmela, Executive Advisor and Director of Market Intelligence at SolarPower Europe, said solar technology, economics, and its strategic value remain stronger than ever.
He noted that future growth will depend on policymakers keeping pace with rapid deployment by supporting battery storage, grid upgrades, and electrification measures.
“The solar message is crystal clear: the technology is ready for much more, the economics are compelling, and the strategic rationale has never been stronger. The task now is to ensure that policy frameworks keep pace with the extraordinary momentum of solar and battery storage. If they do, the next terawatts will arrive even sooner than currently expected,” stated Schmela.
The complete report, launched at The smarter E Europe/Intersolar Europe 2026 in Munich, Germany, is available for free download on SolarPower Europe’s website.