© Depositphotos | Sergey Nivens
The world installed a record 664 GW of solar PV capacity in 2025, marking another record year for solar PV deployment according to SolarPower Europe’s Global Solar Market Outlook 2026-2030.
After extraordinary growth peaks in recent years, market growth slowed to 12% last year, signalling a shift in market dynamics. As solar continues to expand globally, the report also forecasts a temporary decline in installations in 2026, before growth is expected to resume in 2027.
The report also highlights solar’s central role in reinforcing energy security in a context of renewed geopolitical tensions and a second fossil fuel crisis in less than four years, offering a domestic and affordable solution to reduce dependence on imported fossil fuels and shield economies from price volatility. In 2025, the electricity generated by solar was equivalent to nearly five years of LNG flows through the Strait of Hormuz.
Walburga Hemetsberger, CEO of SolarPower Europe (she/her) said: “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.
In a growing number of markets, deployment is increasingly constrained by system integration challenges, from grid congestion to curtailment and negative price signals. We urgently need to invest in grids, battery storage, and other non-fossil flexibility solutions to continue integrating large volumes of renewables into our grids. If policymakers address these challenges, solar will continue to lead the energy transition and remain the most powerful tool to deliver energy security, competitiveness, and decarbonisation.”
Solar PV remained the backbone of global renewable energy expansion in 2025, accounting for 77% of all renewable capacity additions, while solar electricity generation reached 2,778 TWh, covering around 9% of global demand. The total global solar fleet crossed the 3 TW milestone in early 2026, tripling in just four years.
The global solar market continues to be heavily concentrated in a small number of countries. China installed 382 GW in 2025, accounting for 57% of global installations. At the same time, India became the world’s second-largest solar market, installing 45.7 GW (+49% year-on-year), surpassing the United States. As a single market, the EU-27 would rank second, with 67.2 GW installed and a 1% annual growth.
After years of uninterrupted expansion, global solar installations are expected to decline by 8% in 2026, reaching 612 GW under our Medium Scenario.
This first contraction in over 20 years is largely driven by China, where a 24% drop in installations is expected following policy changes. The decline outweighs continued growth in all other regions, highlighting China’s influence on global installations.
Sonia Dunlop, CEO of the Global Solar Council (she/her) said: “The global solar market reached new heights in 2025, with record installations and important markets such as India, France and Saudi Arabia making significant strides in solar + storage adoption.
This report demonstrates the vital role solar + 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.
As we continue to expand into new markets, we need policymakers to support our growth and cut the red tape holding solar back. Stable policy frameworks, faster permitting, grid modernisation and stronger investment environments will be what unlocks the next chapter of solar’s growth across both established and emerging markets.”
Markus Elsässer, CEO of Solar Promotion GmbH (he/him) said: “While 2025 marked another record-breaking year in global solar deployment, the focus is now shifting to how to efficiently integrate solar into the wider energy system, where the rapid deployment of storage, smarter infrastructure and stronger grids are much needed.
Events like The smarter E Europe are essential to bringing together the full solar value chain but also actors in the battery storage as well as e-mobility industries and policymakers, creating the space for exchange, collaboration, and alignment on the solutions needed to address solar’s opportunities and challenges.”
Despite the expected dip in 2026, the long-term outlook for solar remains robust. Annual installations are projected to reach around 864 GW by 2030, while total global capacity is expected to grow to 6.6 TW, with upward potential to 7.6 GW in the High scenario.
Solar will continue to be the main pillar of the energy transition, also in the short-term delivering around 60% of the renewable capacity needed to meet global 2030 targets.
SolarPower Europe 2026 | Global Solar Council | The smarter E Europe
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