Global solar installations reached another historic milestone in 2025, surpassing 3 TW of cumulative capacity. Yet, according to SolarPower Europe, the industry is entering a new phase marked by slower growth and increasing grid integration challenges.
Reaching 3 TW marks a new chapter for photovoltaics worldwide
Is the fossil fuel crisis accelerating the energy transition? Only partially. While renewable energy capacity continues to expand, signs of strain are becoming increasingly evident, even in leading sectors such as solar power.
According to the latest Global Solar Market Outlook 2026-2030 published by SolarPower Europe, the global solar industry achieved another record year in 2025, adding 664 GW of new capacity and pushing total installed solar power beyond 3 TW worldwide.
The achievement is even more remarkable when viewed through a historical lens. From the commercialization of the first solar cell in 1954, it took 68 years to reach the first terawatt of installed solar capacity in 2022. Just two years later, the industry doubled that figure to 2 TW, and only another year and a half was needed to surpass the 3 TW milestone.
Photovoltaics worldwide now generate approximately 9% of global electricity demand, three times more than just five years ago.
The Global Solar Market Outlook 2026-2030
Despite these record-breaking figures, SolarPower Europe warns that the industry is entering a different stage of development.
A closer look at the data reveals that growth is no longer accelerating at the same pace. The association expects the global market to contract in 2026, largely because of a projected 24% decline in Chinese installations.
While most markets outside China are still expanding, the country’s dominant position means its domestic trends have a significant impact on global results.
Under SolarPower Europe’s medium scenario, global solar capacity is expected to reach 6.6 TW by 2030. However, this projection is 0.5 percentage points lower than the forecast published a year earlier.
The report is based on data from SolarPower Europe and highlights that future growth will increasingly depend not only on new installations but also on the ability of power systems to absorb and manage large volumes of renewable electricity.
Grid constraints are becoming the main challenge
In many mature solar markets, the key obstacle is no longer deploying additional capacity but integrating it into the electricity system.
Grid congestion, curtailment, and negative electricity pricing events are becoming more common, limiting the pace of new development.
According to SolarPower Europe, urgent investment in transmission infrastructure, battery storage, and other non-fossil flexibility solutions will be essential to maintain the expansion of renewable energy and support future growth in photovoltaics worldwide.
The Global Solar Market in 2025
The global solar market remained highly concentrated in 2025. The top 10 countries accounted for 82% of all newly installed capacity worldwide, according to SolarPower Europe.
China further strengthened its dominant position, installing 382 GW and representing 57% of global additions.
The most significant shift in the rankings came from India, which overtook the United States to become the world’s second-largest solar market after adding 45.7 GW in 2025.
Germany climbed to fourth place ahead of Brazil, while Spain, Saudi Arabia, France, Italy and Japan completed the top ten. Saudi Arabia recorded one of the strongest annual growth rates, increasing installations from 2.8 GW in 2024 to 8.4 GW in 2025.
The ranking of the leading solar markets was as follows:
- China: 382 GW (57%)
- India: 45.7 GW (7%)
- United States: 43.2 GW (7%)
- Germany: 17.4 GW (3%)
- Brazil: 14.5 GW (2%)
- Spain: 11.3 GW (2%)
- Saudi Arabia: 8.4 GW (1%)
- France: 6.9 GW (1%)
- Italy: 6.4 GW (1%)
- Japan: 5.8 GW (1%)
- Rest of the World: 18%
Photovoltaics Worldwide Face a Temporary Slowdown in 2026
After two decades of uninterrupted expansion, the global solar industry is expected to experience its first annual decline in 2026.
Under the medium scenario outlined by SolarPower Europe, new installations could fall by 8% year-on-year to approximately 612 GW.
Most of the decline is expected to come from China, where changes to incentive schemes and new mandatory standards for solar modules and inverters are likely to reduce deployment activity.
At the same time, increasing curtailment rates and more frequent negative electricity price events in mature solar markets are creating additional headwinds.
Nevertheless, long-term prospects remain robust. SolarPower Europe forecasts annual installations of around 864 GW by 2030, while total global solar capacity is expected to reach 6.6 TW, with the potential to climb as high as 7.6 TW under the most optimistic scenario.
