Global Trends and Market Changes in Solar Energy, 2025–2029

The year 2024 became one of the most remarkable in the development of global solar energy. New installed capacity reached nearly 600 GW, which is 33% more than the year before. This accounted for 81% of all new capacity added in the renewable energy sector and provided 7% of total global electricity generation. In terms of growth rate, solar energy expanded almost three times faster than wind power. As of 2024, global installed solar capacity surpassed 2 TW, a historic milestone: while reaching the first terawatt took around 70 years, adding the second required only two years.

Drivers of Rapid Growth

The sharp increase in capacity has been driven by two major factors:

• Technological progress and versatility of applications: solar energy is now widely used both in small-scale residential systems that provide energy independence for households, and in large industrial solar power plants.
• Declining prices of photovoltaic (PV) modules: surplus manufacturing capacity, primarily in China, has led to lower component costs, making solar energy more affordable worldwide.

2025–2029 Forecast

Despite the record-breaking performance of 2024, further market growth is expected to slow slightly. According to a realistic scenario by SolarPower Europe, global new solar capacity will reach 655 GW in 2025, representing around 10% growth. Between 2027 and 2029, stable double-digit annual increases are anticipated, enabling the market to reach 930 GW in newly added capacity by the end of 2029.

Meanwhile, the Global Solar Council has set a more ambitious target — 8 TW of installed solar capacity by 2030, which would require adding 1 TW of new capacity every single year. Achieving this will depend on addressing major regional imbalances, as current market development remains uneven.

Geographical Market Structure

The dominant share of the global market belongs to the Asia-Pacific region, led by China, which in 2024 increased its installed capacity by 30% to 329 GW, representing 55% of the global solar market. China remains the key driver of global expansion, but also highlights the industry’s dependence on a single country. The temporary slowdown is therefore considered a natural market adjustment, largely influenced by China’s manufacturing surplus.

At the same time, India has emerged as a new hub of solar growth, doubling its capacity in 2024 and ranking third globally. The country continues to demonstrate strong potential for future expansion.

In contrast, both the Middle East and Africa showed slower installation rates in 2024. Only 35 countries managed to add more than 1 GW of solar capacity during the year, fewer than initially expected. However, these regions are projected to accelerate growth in the coming years.