The global solar PV market reached a new milestone in 2025, with 664 GW of newly installed capacity, the highest annual figure ever recorded. This is according to the Global Solar Market Outlook 2026–2030 published by SolarPower Europe, confirming that solar PV continues to be the leading driver of the global energy transition.
Solar PV remains the driving force behind the energy transition
In 2025, solar accounted for 77% of all newly installed renewable energy capacity worldwide, generating approximately 2,778 TWh of electricity, equivalent to nearly 9% of global electricity demand.
Another major milestone was achieved at the beginning of 2026, when cumulative global solar PV capacity exceeded 3 TW, reinforcing solar’s position as a strategic technology for decarbonisation and the long-term development of renewable energy systems.
China continues to dominate the global solar PV market
The SolarPower Europe report highlights a strong geographical concentration of new installations.
In 2025 alone, China installed 382 GW of new solar PV capacity, representing 57% of the global market. This confirms the country’s dominant role both in deployment and across the entire photovoltaic manufacturing supply chain.
India ranked second with 45.7 GW of new installations, representing 49% year-on-year growth and overtaking the United States.
When considering the European Union as a single market, total installations reached 67.2 GW during 2025, confirming Europe’s continued importance in the global solar sector.
Italy ranks among the world’s top 10 solar PV markets
One of the most significant findings for Europe is Italy’s position within the global rankings.
In 2025, Italy accounted for approximately 1% of worldwide new solar PV installations, placing eighth globally, alongside France, Japan and Saudi Arabia.
Ahead of Italy are China, India, the United States, Germany, Spain and Brazil, which continue to lead international market growth.
Although Italy’s global market share remains relatively modest, the figures confirm the steady expansion of the Italian solar sector, driven by increasing deployment of Commercial & Industrial (C&I) systems, utility-scale projects and the growing adoption of battery energy storage solutions.
Global market expected to slow slightly in 2026
Alongside record-breaking growth, the report also highlights the possibility of a short-term slowdown.
SolarPower Europe forecasts an 8% decline in new global installations during 2026, reducing annual deployment to approximately 612 GW. If confirmed, this would represent the first contraction experienced by the solar industry in the past two decades.
The main reason is expected to be recent regulatory changes introduced in China, which could reduce domestic installations by around 24%. Given China’s share of the global market, such a slowdown would inevitably affect worldwide figures, despite continued growth across many other countries.
The next challenge: grid integration and battery energy storage
According to the report, the future growth of solar PV will no longer depend solely on installing more capacity, but increasingly on integrating photovoltaic systems into modern electricity networks.
Many markets are already facing challenges related to:
- grid congestion;
- negative electricity prices;
- increasing demand for grid flexibility;
- higher levels of self-consumption.
For installers, EPC contractors, system designers and energy professionals, this creates significant opportunities in areas such as:
- Battery Energy Storage Systems (BESS);
- energy management systems;
- PV and battery storage integration;
- smart energy management;
- grid flexibility and balancing services.
Combining solar PV with battery storage will become increasingly important to maximise self-consumption, reduce grid constraints and improve the economic value of renewable energy investments.
Long-term outlook to 2030 remains highly positive
Despite the expected slowdown in 2026, the long-term outlook for the global solar PV market remains extremely positive.
According to SolarPower Europe’s forecast, annual installations could reach 864 GW by 2030, while cumulative installed solar PV capacity is expected to increase to approximately 6.6 TW, more than double today’s levels.
For the renewable energy industry, the message is clear: solar PV will continue to play a central role in decarbonisation, energy security and industrial competitiveness.
For installers, designers and EPC companies, future success will not depend solely on installing more photovoltaic modules, but on delivering increasingly efficient, digitalised and integrated energy systems. Advanced technical expertise, battery storage, energy management and digital technologies will become the key competitive advantages shaping the market over the coming years.
For further insights into the data and forecasts presented in this article, read the Global Solar Market Outlook 2026–2030 published by SolarPower Europe.
