2025 Snapshot of Global PV Markets

The Global PV Industry Surpasses 2.2 TW – But Faces New Pressures

In 2024, the PV sector marked another record-breaking year with over 600 GW of new installations. Global cumulative capacity soared past 2.2 TW, and for the first time, solar PV generated over 10% of the world’s electricity.

As solar power cements its role as a cornerstone of the energy transition, the latest trends reveal both immense opportunity and mounting complexity for the global PV industry.

Growth in Annual Capacity Across Major Markets

PV markets expanded rapidly in 2024, with at least 601.9 GW of new systems commissioned worldwide. China added 357 GW, accounting for nearly 60% of global additions and surpassing 1 TW in cumulative capacity.

The European Union contributed 62.6 GW, led by Germany (16.7 GW) and Spain (7.5 GW), while the USA followed closely with 47.1 GW.

India surged to 31.9 GW, more than doubling last year’s volume, and Pakistan emerged as a surprising fourth-place contender, reaching 17 GW in new capacity — largely driven by low-cost imports.

But this growth comes in a rapidly changing landscape. While PV continues to dominate new renewable capacity additions, falling module prices due to oversupply are shaking up global markets and pressuring manufacturers.

Policy & Market Trends 2024–2025

From remuneration models to manufacturing strategies, policy choices are reshaping global PV markets. Here’s what’s driving the shift.

Remuneration Mechanisms: Evolving for a Mature Market

Tenders remained central to utility-scale deployment in 2024, while PPAs and corporate PPAs gained ground globally. As companies aim to stabilise electricity costs and meet sustainability goals, long-term contracts are becoming mainstream. Countries like India, Türkiye, and EU members have adapted tender schemes to include criteria like local content or carbon footprint.

While PPA prices increased in Japan and North America, they dropped in Europe due to project oversupply. To boost investor confidence, France and Italy introduced guarantee schemes, while Malaysia and Portugal worked to expand PPA accessibility. Looking ahead, business models that combine hybrid systems and grid services are expected to grow, especially in markets affected by curtailment or negative prices.

Prosumers Powering Change

Rising electricity prices and falling PV costs have made prosumers an increasingly influential force. From individual rooftop installations to collective energy communities, prosumers are supported by a growing range of policies. While net metering remains common in emerging markets, net billing and self-consumption schemes are expanding in mature ones.

Innovative models like virtual self-consumption and shared generation within buildings are gaining popularity, especially in Europe. These allow small-scale generators to sell electricity directly to nearby consumers — without navigating complex licensing procedures.

Grid Integration and Curtailment: A Rising Challenge

With PV penetration rates exceeding 10% in 27 countries, grid operators are facing growing complexity. Grid congestionand connection delays hinder deployment in several markets, while curtailment events are becoming more frequent.

In response, policies now include grid service obligations, compensation for lost generation, and large-scale investments in storage and shared grid infrastructure. Greece has pioneered legal frameworks allowing real-time control of PV output.

New governance models will be crucial to allocate infrastructure costs fairly and enable the continued integration of variable renewables.

Local Manufacturing: Strategic but Challenging

Amid supply chain disruptions and price volatility, local PV manufacturing gained policy focus in 2024. While India, Türkiye, and the USA expanded capacity through tariffs and subsidies, Europe faced setbacks. Despite the NZIA and targeted incentives, several EU manufacturers shut down under price pressure.

New manufacturing zones emerged in the Middle East and North Africa, while Brazil and South Africa introduced tariffs to protect domestic industries. Australia’s Solar Sunshot programme added production subsidies, and India’s ALMM listensured that public projects source from vetted domestic manufacturers.

2025 Market Outlook: Growth with Complexity

IEA PVPS member countries expect stable or moderate growth in 2025. However, reduced tariffs and incentives may dampen momentum in countries like France, Austria, and the USA, while Japan and Australia could benefit from policy shifts.

Chinese module production is now more controlled, which could ease oversupply, though uninstalled stock remains high in markets like Pakistan. As curtailment rises and grid congestion spreads, new business models focused on resilience and flexibility — including storage and hybrid systems — are expected to take centre stage.

PV represented over 75% of all new renewable capacity in 2024, and around 60% of new generation. As electrification expands to sectors like transport and industry, solar will remain pivotal. Yet its success depends increasingly on policy agility, grid readiness, and sustainable industry development.

Download the full Snapshot 2025 report: https://iea-pvps.org/snapshot-reports/snapshot-2025/

Watch the recording of our webinar “Snapshot of Global PV Markets & Industry Insights”:

Part 1: https://www.youtube.com/watch?v=iIN4pVWZGyQ&t

Part 2: https://www.youtube.com/watch?v=kWvcS-6aH1o

About IEA PVPS Task 1

IEA PVPS Task 1 focuses on the analysis of policies, markets, and industries to advance the role of photovoltaics in the global energy transition. By delivering comprehensive reports, such as the annual Trends in PV Applications andSnapshot of Global PV Markets, Task 1 provides insights into the development of PV systems, applications, and market dynamics. These reports are widely regarded as essential resources for policymakers, industry stakeholders, and researchers, offering a comprehensive understanding of the trends and drivers shaping the future of solar power.

About IEA PVPS

The International Energy Agency Photovoltaic Power Systems Programme (IEA PVPS) supports the global transition to sustainable energy by promoting international collaboration on PV research, development, and application. Established in 1993, IEA PVPS now includes 30 members (27 countries and 3 organisations).