We use cookies to improve your experience and for marketing. Read our cookie policy or manage cookies.
Search across reports, market insights, and blog stories.
The world added a record 664 gigawatts of new solar photovoltaic capacity in 2025, bringing total global operational solar capacity above 3 terawatts, according to a report published by trade body SolarPower Europe. The milestone was reached less than two years after the global solar fleet passed the 2-terawatt mark.
SolarPower Europe’s Global Solar Market Outlook 2026-2030 report notes that solar electricity generation in 2025 was equivalent to 540 billion cubic meters of natural gas, or five years of gas shipments through the Strait of Hormuz, whose closure has significantly disrupted global energy systems. Solar photovoltaic technology led primary energy growth in 2025, surpassing gas for the first time, meeting 27 percent of additional energy demand. Bioenergy was second among renewables with 13 percent, while gas was second among non-renewables with 17 percent.
China remains by far the world’s leading solar market, adding 382 gigawatts of new capacity in 2025, roughly 100 gigawatts more than all other markets combined. The United States, which ranks second for cumulative operational capacity, saw new capacity additions decline by 14 percent between 2024 and 2025. SolarPower Europe described the U.S. solar sector as one of adjustment, with developers adapting to an increasingly hostile policy landscape under the current administration compared to the previous era’s incentives. Germany, Europe’s largest solar market, saw capacity additions remain unchanged between 2024 and 2025. Brazil, the world’s sixth-largest market, experienced a 23 percent year-on-year decline in new capacity additions. As a result, China’s share of global new capacity additions rose from 55 percent in 2024 to 57 percent in 2025.
China added 336 gigawatts more than the second-largest market, India, in 2025. China’s solar capacity is eight times larger than the second-largest market, nine times larger than the third, and 26 times larger than the fifth. The top ten markets accounted for 82 percent of global installations in 2025.
SolarPower Europe expects 2026 to see fewer capacity additions than in 2025. Its medium scenario anticipates an 8 percent year-on-year decline, while its low scenario suggests a 25 percent decline. Much of this slowdown stems from a changing policy landscape in China, where the China Photovoltaic Industry Association has sought to end the race to the bottom in solar module prices, which contributed to large deployment figures but made production unprofitable for many leading manufacturers. SolarPower Europe expects a 24 percent year-on-year drop in new installations in China, the first annual decline in over 20 years.
The 664 gigawatts added in 2025 represents just a 12 percent year-on-year increase over 2024, compared to 32 percent and 85 percent increases in previous years. While the medium scenario expects cumulative capacity to more than double to 6.6 terawatts by 2030, this is a downward revision from last year’s forecast of 7.1 terawatts.
SolarPower Europe’s CEO commented that the solar age is firmly established, but noted that the pace of new capacity additions is declining ahead of a forecast contraction. The trade body warned that in a growing number of markets, deployment is increasingly constrained by system integration challenges such as grid congestion, curtailment, and negative price signals. It called for urgent investment in grids, battery storage, and other non-fossil flexibility solutions.
The report makes several policy recommendations, including accelerating grid investment and changing electricity markets to reward flexibility and self-consumption. It highlights Australia as an example, pointing to increasing deployment of residential solar projects and battery energy storage systems. Around 69,000 battery energy storage systems were coupled with solar projects in Australia in April 2026, a pace described as extraordinary, meaning Australia’s distributed storage fleet could reach the multi-gigawatt-hour scale within months. This acceleration was driven by the Cheaper Home Batteries Program, broader policy momentum following Labor’s May 2025 re-election, and continued declines in system costs. Figures from Australia’s Clean Energy Regulator show the country’s large-scale renewable energy pipeline has reached 32 gigawatts of capacity.
Making Data-Driven Decisions to Grow Your Business
A Quick Overview of Market Performance
Understanding the Current State of The Market and its Prospects
Finding New Products to Diversify Your Business
Choosing the Best Countries to Establish Your Sustainable Supply Chain
Choosing the Best Countries to Boost Your Export
The Latest Trends and Insights into The Industry
The Largest Import Supplying Countries
The Largest Destinations for Exports
The Largest Producers on The Market and Their Profiles
The Largest Markets And Their Profiles
Instant access. No credit card needed.
Online access to 2M+ reports, dashboards, and tables. Trusted by Fortune 500 teams.
IndexBox, Inc.
2093 Philadelphia Pike #1441
Claymont, DE 19703, USA
Contact us
© 2026 IndexBox, Inc

source