The world installed a record 664 GW of solar PV capacity in 2025, according to SolarPower Europe's Global Solar Market Outlook 2026-2030. It marks another record year for the industry, though growth has slowed considerably. Annual capacity additions rose 12 percent last year, a sharp deceleration after several years of exceptional expansion, and the report forecasts a temporary contraction in 2026 before growth resumes in 2027.
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Solar remained the dominant force in renewable energy expansion, accounting for 77 percent of all new renewable capacity added globally in 2025. Solar generation reached 2,778 TWh over the year, covering around 9 percent of global electricity demand. The world's total installed solar fleet passed 3 TW in early 2026, having tripled in just four years.
SolarPower Europe
That growth remains heavily concentrated. China installed 382 GW in 2025, or 57 percent of the global total, while India overtook the United States to become the second-largest market with 45.7 GW, up 49 percent year on year. The EU-27, taken as a single market, would rank second globally with 67.2 GW installed, though growth there was flat at 1 percent.
SolarPower Europe
The market is now expected to contract for the first time in over two decades. Global installations are forecast to fall 8 percent in 2026, to 612 GW under the report's medium scenario, driven largely by a 24 percent drop in China following policy changes there. That decline outweighs continued growth in every other region.
SolarPower Europe
Walburga Hemetsberger, CEO of SolarPower Europe: "The solar age is firmly established. With another record year in capacity additions in 2025, solar continues to outperform all other energy technologies. However, the slowdown in growth we observed in 2025 and the expected dip in 2026 are important signals highlighting a new reality: scaling solar is no longer just about deploying more capacity but about how well it can be integrated into the system."
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Sonia Dunlop, CEO of the Global Solar Council, pointed to the same shift: "This report demonstrates the vital role solar plus storage has to play in an increasingly volatile world. Solar's long-term trend of record-breaking growth remains unchanged, despite policy adjustments in some of our biggest markets, and the industry is on track to more than double its capacity by 2030."
Despite the near-term dip, the report's long-term outlook stays firmly upward. Annual installations are projected to reach around 864 GW by 2030, with total global capacity climbing to 6.6 TW, and as high as 7.6 TW under a more optimistic scenario. Solar is expected to deliver around 60 percent of the renewable capacity the world needs to meet its 2030 climate targets. (TF)
