Global Solar Outlook 2025–2029: SolarPower Europe Forecasts 1 TW Annual Installations By 2030

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The global solar industry experienced unprecedented growth in 2024, with a record 597 gigawatts (GW) of new solar capacity installed, marking a 33% increase over the previous year. This surge brought the total global solar capacity to 2.2 terawatts (TW), solidifying solar power’s position as a cornerstone of the global energy transition. These findings are detailed in the report “Global Market Outlook for Solar Power 2025–2029,” released by SolarPower Europe on May 6, 2025.

Key Highlights From The Report

• 2024 Installations: The 597 GW added in 2024 represents the highest annual increase in solar capacity to date, underscoring the technology’s rapid adoption worldwide.
• China’s Dominance: China led the global market, contributing 329 GW of the new capacity, accounting for approximately 55% of global installations.
• India’s Rapid Growth: India emerged as the third-largest solar market, adding 30.7 GW in 2024—a 145% increase from the previous year. This growth aligns with India’s goal of achieving 500 GW of renewable energy capacity by 2030.
• Regional Developments: The Americas and Europe saw growth rates of 40% and 15%, respectively, while the Middle East and Africa experienced a decline in installations.

China & Asia Lead the Way

China once again dominated the global solar market, installing a record-breaking 329 GW in 2024, or more than half of global capacity additions. This nearly doubles the country’s already record-setting figures from 2023. The country’s expansion is fueled by both massive utility-scale projects and the surging adoption of distributed PV systems in urban and industrial zones.

India emerged as the third-largest solar market in 2024 with 30.7 GW of new capacity, marking a 145% increase from the previous year. This boom reflects strong policy momentum under the Indian government’s goal to reach 500 GW of non-fossil fuel energy capacity by 2030. Key developments include rapid growth in solar parks, aggressive auctioning of capacity, and significant investment from both domestic and international developers.

Japan and South Korea also contributed meaningfully to regional growth, while Southeast Asia continues to show promise despite regulatory headwinds in several countries.

Europe & The Americas Expand At A Steady Pace

The European Union added approximately 67 GW of new solar in 2024, representing a 15% increase over 2023 figures. Germany, Spain, and Italy continued to lead the continent, while Poland, France, and the Netherlands registered strong growth in commercial and residential installations. While high electricity prices, favorable feed-in tariffs, and expanded EU decarbonization targets continue to support solar adoption, grid congestion and permitting delays remain persistent challenges across several member states.

In the Americas, the United States installed around 40 GW of solar capacity in 2024, up nearly 35% year-on-year. This growth is largely attributed to the incentives provided under the Inflation Reduction Act, particularly the Investment Tax Credit extensions and domestic manufacturing support. Brazil also posted robust numbers with an estimated 14 GW in 2024, thanks to an expanding distributed generation segment and government support for rural electrification.

Regional Disparities Persist

Despite global progress, SolarPower Europe flags growing disparities in solar adoption between advanced economies and developing nations. Africa and parts of the Middle East saw a decline in new installations in 2024, primarily due to financing constraints, policy instability, and infrastructural bottlenecks. The report warns that without urgent international cooperation and investment, large swaths of the Global South may be left behind in the clean energy transition.

Forecasts & Projections

SolarPower Europe offers three growth scenarios for the next five years — low, medium, and high — with the medium scenario being considered the most likely under current policy trajectories and market conditions. Under this medium pathway, the world is expected to install:

• 655 GW in 2025
• 735 GW in 2026
• 820 GW in 2027
• 910 GW in 2028
• 1,000 GW in 2029

By the end of 2029, global installed solar capacity is forecasted to exceed 7 TW. This trajectory would position solar to provide more than 20% of global electricity demand, significantly advancing efforts to align with the Paris Agreement’s 1.5°C pathway.

Policy Recommendations

The report outlines several critical recommendations to sustain momentum and unlock the full potential of solar power:

• Grid Modernization: The rapid expansion of solar capacity is outpacing upgrades to grid infrastructure in many regions. The report calls for immediate investment in smart grids, digital monitoring systems, and transmission build-out to ensure stable integration of variable renewables.
• Permitting Reform: Lengthy and opaque permitting processes remain a bottleneck in both developed and developing markets. The report urges governments to streamline regulatory procedures, set clear timelines, and adopt digital permitting platforms.
• Energy Storage Deployment: With solar generation growing rapidly, large-scale energy storage is now essential for balancing supply and demand. The report recommends that governments include storage mandates in future solar tenders and offer incentives for standalone battery projects.
• Financing Access in Emerging Markets: Solar growth remains concentrated in OECD countries and China. To address this imbalance, SolarPower Europe advocates for international green finance mechanisms, blended finance models, and enhanced risk guarantees from multilateral institutions.
• Domestic Manufacturing and Supply Chain Resilience: The report highlights the growing concern over supply chain dependency, particularly on Chinese manufacturing. It suggests fostering regional manufacturing capabilities through subsidies, technology transfer programs, and public-private partnerships.

Industry Challenges & Risks

While the forecast is overwhelmingly positive, the solar sector still faces several headwinds:

• Trade Disputes and Tariffs: Ongoing geopolitical tensions and anti-dumping measures are creating uncertainty in module pricing and availability.
• Land Use Conflicts: Large-scale solar farms are increasingly facing opposition due to competition for agricultural and conservation land.
• Workforce Gaps: Rapid scaling is exacerbating labor shortages in engineering, installation, and operations.

SolarPower Europe emphasizes that overcoming these barriers will require coordinated policy action, sustained innovation, and global cooperation.

“It’s been 10 years since the GSC was established, and since then we’ve seen immense progress for solar – but this progress is not seen everywhere. Achieving the global target of tripling renewable energy capacity by the end of the decade is possible with solar, we need 1 TW of solar every year through 2030 and solar progress in more and more countries. That means action now to prepare for the future: smarter grids, faster permitting, bigger investments in emerging markets, and serious workforce planning.” — Sonia Dunlop, CEO at the Global Solar Council

Final Thoughts

The Global Market Outlook for Solar Power 2025–2029 paints a compelling picture of solar’s trajectory as the cornerstone of the global energy transition. With nearly 600 GW installed in a single year, solar has entered a new era, one defined not by niche adoption or subsidy dependence, but by scale, competitiveness, and necessity.

“The solar age is truly here. While the uptake of solar varies across regions across the world, a common theme is the importance of flexible, electrified energy systems — underpinned by critical technology like battery storage. Decision-makers across the globe should ensure that their flexibility plans match, and maximize, the solar reality.” — Walburga Hemetsberger, CEO of SolarPower Europe

As the industry gears up to reach 1 TW of new installations per year by 2030, stakeholders must now turn their focus to ensuring that growth is equitable, resilient, and embedded within broader energy system transformation efforts. Reaching the full potential of solar energy globally will require concerted efforts to address infrastructural, regulatory, and financial challenges. For a detailed analysis and country-specific insights, the full report is available at SolarPower Europe’s website.