Global Solar Market Reaches Record Growth in 2025 as PV Becomes Key Driver of Energy Transition

According to SolarPower Europe’s latest Global Solar Market Outlook 2026–2030, global solar photovoltaic (PV) installations reached a record 664 GW in 2025, representing a 12% year-on-year increase.

Solar power continued to lead global renewable energy expansion, accounting for 77% of new renewable energy capacity added worldwide. Global PV electricity generation increased to 2,778 TWh, supplying around 9% of global electricity demand, while total installed solar capacity surpassed 3 TW in early 2026.

China Remains the Largest Solar Market

China continued to dominate global solar deployment, adding 382 GW of new PV capacity in 2025, accounting for 57% of global additions.

India became the world’s second-largest solar market after installing 45.7 GW, achieving 49% year-on-year growth. The European Union added 67.2 GW of new solar capacity, while emerging markets such as Saudi Arabia, Pakistan, and Australia also showed strong solar demand growth.

Emerging Markets Drive New Opportunities

Solar adoption is accelerating in many developing markets as governments, businesses, and households seek more reliable and affordable energy solutions.

Pakistan, for example, has imported more than 50 GW of solar modules over the past five years, mainly driven by residential and small business demand. Australia also continued expanding its mature rooftop solar market, adding 4.8 GW in 2025, including approximately 2.8 GW of rooftop installations.

Meanwhile, the combination of solar PV and battery storage is becoming increasingly important in markets such as India, France, and Saudi Arabia, creating new opportunities for energy storage solutions.

Future Growth Depends on Grid and Storage Integration

SolarPower Europe highlighted that the next stage of solar growth will depend not only on adding more capacity but also on improving energy system integration.

Challenges such as grid congestion, curtailment, and negative electricity prices are increasing in some markets, driving demand for grid upgrades, battery storage systems, and smarter energy management solutions.

Although global PV installations may experience a temporary slowdown in 2026, the long-term outlook remains strong. SolarPower Europe expects annual global installations to recover from 2027 onward, potentially reaching 864 GW by 2030 under its medium scenario.

The global solar industry is entering a new phase where solar, storage, and intelligent energy solutions will work together to support a more secure and sustainable energy future.