Global Solar Installations on Track to Hit 655 GW in 2025—Up 174% from 2022

Energy Box
May 9
2 min read

The global renewable energy sector is undergoing a profound transformation, driven by a combination of economic shifts, progressive policies, and rapid technological advancement. According to the Global Market Outlook for Solar Power 2025-2029 report by SolarPower Europe, solar energy is proving not only resilient in the face of global disruptions but also increasingly vital to energy security, climate goals, and industrial competitiveness.

Record-Breaking Growth Amid Global Headwinds

Despite inflation, supply chain disruptions, and geopolitical volatility—especially stemming from the ongoing Russia-Ukraine conflict—global solar photovoltaic (PV) installations soared to an unprecedented 239 GW in 2022. This represents a 45% year-on-year increase, showcasing the sector’s adaptability and growing importance in energy planning. Europe played a key role in this surge, adding 41.4 GW in 2022—a 47% rise from the previous year.

The European Union’s REPowerEU initiative, developed in response to the energy crisis, has significantly accelerated renewable energy uptake across the continent, emphasizing solar’s strategic role in achieving energy sovereignty.

Concentrated Leadership: 10 Markets Account for 81% of Capacity

A standout insight from the report is the dominance of the top 10 solar markets. In 2024, these countries are projected to install 597 GW, accounting for 81% of global solar capacity. As depicted by SolarPower Europe:

China dominates with 55% of global solar capacity.
The United States follows with 8%, bolstered by the Inflation Reduction Act.
India holds 5%, targeting 280 GW of solar by 2030.
Brazil and Germany contribute 3% each.
Spain, Türkiye, Italy, Japan, and France round out the list with 1% each.
The rest of the world makes up the remaining 19%.

This concentration highlights both the global momentum and the strategic leadership of key countries in shaping solar deployment trajectories.

Policy Alignment and Industrial Strategy Accelerate Growth

The Global Market Outlook for Solar Power 2025-2029 makes clear that this surge is not just market-driven—it is also the result of deliberate and ambitious government policies. Key examples include the United States’ Inflation Reduction Act and China’s ongoing leadership in both manufacturing and deployment. In India, large-scale tenders and ambitious national targets are playing a catalytic role. The synergy between public policy, private sector investment, and innovation in storage, grid integration, and hybrid systems is driving solar into new applications and regions.

Forecasting a Solar Future

Looking ahead, the report forecasts that annual solar installations could reach 655 GW by 2025, and 800 GW by 2027, more than tripling the 2022 benchmark. This exponential growth will depend on critical enablers: modernized grids, accelerated permitting processes, skilled labor, and international collaboration.