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.
Solar dominates global renewable growth
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.
Global market expected to decline in 2026
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.
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