Global solar installations hit a record high of 597 GW in 2024, a 33% increase year-over-year (YoY) from 2023, according to a new report from SolarPower Europe.

After global installations crossed the 2 TW solar capacity milestone in late 2024, the report predicts that global installations can reach 1 TW of solar capacity per year by the decade’s end.

In 2024, China alone added 329 GW of solar capacity, comprising 55% of global installations. Worldwide installations are expected to decline slightly in 2026 following changes in China’s market design in 2025.

The U.S. constituted 8% of the total installations, India 5%, Brazil 3%, Germany 3%, Spain 2%, Turkey 2%, Italy 1%, Japan 1%, and France 1%.

India’s resurgence pushed Brazil and Germany each down one position in the rankings. The two countries installed 18.9 GW and 17.4 GW of solar capacity, respectively.

The report recognized India as the third-largest solar market, doubling its installations in 2024. The country saw a 145% annual market increase according to the report.

Capacity additions in the Americas and Europe grew by 40% and 15%, respectively. Meanwhile, growth in the Middle East and Africa declined.

The report said that the global solar market is projected to continue its upward trajectory through 2029.

Solar energy comprised 46% of the global renewable energy capacity by the end of 2024, with 2.2 TW installed. The worldwide installed solar capacity is expected to exceed 7 TW by 2030, representing 65% of the total renewable capacity.

Solar Leads Energy Transition in 2024

Solar energy has continued to lead the clean energy transition in 2024, per the report. Of the estimated 735 GW of new renewable capacity installed worldwide, solar PV made up 81%, grid-connecting 597 GW, marking a 78% increase from 2023.

In 2024, solar PV produced 474 TWh more than the year before, with a 29% annual growth, outpacing all other power generation technologies both in absolute and relative terms.

Wind followed as a distant second at 185 TWh, growing by 8%, while hydro remained relatively stable at 183 TWh with a 4% increase.

Traditional energy sources like coal, gas, and nuclear have seen minimal growth of 1-2% annually, falling far short of the leading three renewable technologies.

GW-scale solar markets

The renewable energy market is witnessing an expansion in GW-scale solar with 35 countries installing over 1 GW of new capacity in 2024.

Countries adding the newer capacity include Colombia, the Philippines, Uzbekistan, Ireland, and the Czech Republic. The United Arab Emirates, which reached the GW scale in 2023, did not make it back in 2024.

According to SolarPower Europe’s forecast, this upward trajectory will accelerate in 2025. The report expects 10 additional countries to join the group with a total of 45 GW-scale markets.

In 2024, the Asia Pacific (APAC) region, including China, dominated the global solar market with 417 GW of new solar, 37% more than in 2023. While the global market share of China (taken as a separate region for its sheer size) stood at 55%, and APAC region without China stood at 15%. Combined, APAC with China captured 70% of global solar additions in 2024.

Besides another record-breaking year for China, the region was mostly marked by significant developments in India, which saw a 145% annual market increase, reaching 30.7 GW in yearly installations.

A Slowdown expected

As per the report, 2025 will be a pivotal year for the global PV industry. While the solar market continues to see unprecedented growth, fueled by China’s increasing installations, the market could experience a slowdown.

As solar’s growth continues, the urgent need for energy system flexibility solutions is quickly mounting. Policymakers and regulators have constantly underestimated the pace of solar development, leading to underinvestment in grid infrastructure and an outdated network.

This disconnect is already causing significant system issues in more developed markets, like increasing curtailment rates and more frequent negative electricity prices. These factors lower solar capture prices, jeopardizing the economic feasibility of new solar projects.

Regulators in markets worldwide, both mature and nascent PV and storage markets, must plan for the necessary system flexibility to solve these challenges before they occur. Despite these headwinds, the global solar PV market is still expected to grow by 10% in 2025, reaching 655 GW.

Global Solar Market Outlook

While the outlook for solar PV demand between 2025 and 2028 remains generally positive, expectations should be tempered by ongoing uncertainties. Broader geopolitical instability and economic volatility, coupled with mixed policy signals in some key markets, may influence the pace and scale of deployment.

Despite these uncertainties, global demand for solar PV is expected to continue following the upward direction in the near and medium term.

The policy uncertainty in the United States is also weighing on investor confidence. As a result, the report anticipates a slowdown of 8% from 51 GW in 2025 to 47 GW in 2026, with a further decrease expected in the following years.

In the High Scenario, stronger solar adoption across most regions supports annual growth rates of 11–13%, pushing yearly installations beyond the 1 TW threshold already by 2028.

In the Low Scenario, the growth slows to 3–8% annually, resulting in 694 GW of installations in 2029. In the Medium Scenario, the projected installations are 930 GW.

The Medium scenario anticipates the most likely development given the current state of play of the market. The Low Scenario forecast is based on the assumption that policymakers halt solar support and other issues arise, including interest rate hikes and severe financial crises.

The High Scenario forecasts the best optimal case in which policy support, financial conditions, and other factors are enhanced.

Bloomberg New Energy Finance’s Global PV Market Outlook’s solar report predicted that solar installations would exceed 520 GW in 2024.

As per the latest report from the International Renewable Energy Agency, global renewable energy capacity additions totaled 585 GW in 2024, a record 15.1% growth year-over-year, the highest annual increase since 2000.

Renewable energy represented 92.5% of the new power capacity additions globally, with Solar and wind energy jointly contributing 96.6% of the net renewable energy capacity additions in 2024.