SolarPower Europe Forecasts 655 GW of New Solar in 2025

Short-term uncertainty clouds solar growth, but fundamentals support long-term expansion to meet climate goals
SPE
SPE’s 2025 projections factor in any policy changes in China and the US, as well as the implementation of existing policies in a timely manner in the EU. (Photo Credit: SolarPower Europe)
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Key Takeaways
  • Global solar additions may reach 655 GW in the medium scenario of SPE’s projections for 2025

  • Policy uncertainty in China, the US, and the EU could temper market expansion this year

  • Solar PV led 2024 renewables growth, but future targets demand an average of 1 TW annual installations by 2030

SolarPower Europe (SPE) expects the year 2025 to see a 10% year-on-year (YoY) growth for global solar PV additions, adding 655 GW, but the growth rate will drop from an impressive 33% experienced in 2023 when the installations reached 597 GW.  

Any possible policy changes in the 2 largest solar markets, China and the US, may further temper growth this year, not to forget the European Union’s (EU) failure to implement an effective policy framework at the Member State level. Factoring these in, SPE expects an 8% annual decline in its 2025 forecast to 548 GW, but a 30% surge to 774 GW in the high scenario sustained by low product prices and potential policy stimulus in China.

SPE makes these assertions in its flagship report, Global Market Outlook for Solar Power 2025-2029. According to this report, solar accounted for 81% of all new renewable energy capacity added worldwide last year, and its share in the global electricity generation improved to 7% in 2024.  

Nevertheless, to achieve the Global Solar Council’s 8 TW cumulative capacity target by 2030, the world would need to deploy roughly 1 TW/year on average. According to the report writers, annual global solar installations are projected to reach 930 GW by 2029 in the medium scenario, exceeding 1.2 TW in the high scenario. Adding 1 TW annually should be within reach by 2030.  

SPE
The global solar energy growth is tapering down as the world installed 33% more solar in 2024, compared to a 47% annual jump in 2022 and 85% in 2023. (Photo Credit: SolarPower Europe)

2024 installations  

China was the undisputed leader last year, achieving a 30% YoY growth to 329 GW and accounting for a 55% global market share. The US followed next with a 54% YoY jump, adding a record 50 GW, while India experienced a growth of 145% to 30.7 GW. Brazil was the 4th largest solar market in 2024 with 18.9 GW, and Germany was 5th with 17.4 GW capacity installed last year.  

The top 10 solar markets installed 81% of global solar capacity out of 597 GW. 

What helped grow the numbers last year were technology improvements, and of course, record-low solar component prices owing to overcapacity along the solar value chain. Solar PV is also growing in stature as a ‘cornerstone’ technology in climate, political, and energy security strategies globally.  

“The solar age is truly here. While the uptake of solar varies across regions across the world, a common theme is the importance of flexible, electrified energy systems – underpinned by critical technology like battery storage. Decisionmakers across the globe should ensure that their flexibility plans match, and maximise, the solar reality,” said SPE CEO Walburga Hemetsberger.   

Talking about the report at The smarter E / Intersolar Europe in Munich, SPE Executive Advisor and Director of Market Intelligence Michael Schmela cautions of a temporary stagnation in 2026 as China adjusts to its new solar market design. This market correction will be followed by double-digit growth from 2027 onward. 

“While long-term fundamentals – including continued low prices, largely based on further declining costs, cross-sectoral electrification, and strong energy security priorities – will support growing demand. But short-term uncertainties, particular around China’s evolving policy framework, could cause temporary slowdowns,” stated Schmela.  

The complete report is available for free download on SPE’s website.  

The TaiyangNews team will be attending Intersolar Europe 2025 in Munich from May 7 to 9. Feel free to email santhoshithakur@taiyangnews.info to schedule a meeting.  

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