In 2024, solar power reached a historic milestone with 597 GW of new capacity installed, reflecting a 33% year-on-year increase and reaffirming its position as the leading renewable technology worldwide. As presented by SolarPower Europe in its Global Market Outlook 2025–2029, solar contributed 81% of all newly deployed renewable energy capacity globally.

“The year 2024 was a true landmark for solar energy,” the organisation notes, highlighting that solar nearly doubled its share of global electricity generation in just three years, reaching 7% of the total electricity mix.

China remains the unrivalled engine of growth

Growth is spearheaded by the Asia-Pacific region, which accounted for 70% of all new capacity additions. China alone installed 329 GW, more than double the combined total of the other top ten markets. This equates to 55% of all global additions, consolidating its unmatched dominance.

“China continues to play in a different league, installing over six times more than the second-largest market, the United States,” the report states. For comparison, India installed 30.7 GW, Brazil 18.9 GW and Germany 17.4 GW in 2024. India was the only major market to post a 145% year-on-year growth, reclaiming third place globally.

A booming technology is facing structural headwinds

Despite record momentum, the report warns of a market deceleration. Growth in 2025 is expected to slow to 10%, with 655 GW of new capacity in the medium scenario, a notable drop from the 85% spike seen in 2023. However, annual installations could reach 1 TW by 2030, enabling a cumulative global capacity of 7.1 TW under the base case and up to 8 TW under the high scenario.

“Double-digit growth is expected to resume from 2027, following a short stagnation in 2026 driven by China’s new market framework,” the report notes.

Regional disparities in growth and market share

Expansion remains highly uneven. Asia-Pacific holds 1.4 TW of total installed capacity, while Europe and the Americas each account for 14% of the global market. Europe added 82.1 GW in 2024, but slowed to 15% growth, down sharply from 50% in 2023.

“The number of countries with gigawatt-scale solar markets reached 35, although still below projections,” SolarPower Europe indicates. The Middle East and Africa were the only regions to contract, posting a 2% decline to 14.5 GW.

Price decline and manufacturing overcapacity as growth enablers

A major enabler of this boom is the historic drop in solar prices. Global overcapacity across the value chain—polysilicon, wafers, cells and modules—has driven costs to record lows, making solar more accessible than ever.

“Solar is now the lowest-cost power generation technology in many parts of the world,” the report affirms, which has helped sustain installations across both emerging and mature markets.

Grid integration and policy barriers remain critical challenges

The report raises concerns about grid integration issues in mature markets. Lagging infrastructure, slow permitting and falling capture prices pose a threat to new projects’ viability.

“Regulators underestimated solar’s growth, leading to underinvestment in grid capacity, which is now causing higher curtailment rates and lower capture prices,” SolarPower Europe warns.

To address this, the report calls for urgent action: modernising grids, scaling up battery storage, developing skilled labour, and updating policy frameworks to accommodate variable renewables.

On track for 7 TW and beyond

Cumulatively, the world reached 2.2 TW of installed solar capacity in 2024, doubling the total in just two years. In generation terms, solar delivered 2,000 TWh, comparable to India’s entire annual electricity consumption.

“The world crossed the 2 TW threshold in 2024. The next goal is to triple that by 2030,” the report concludes. If projections hold, solar will deliver 65% of the 11 TW global renewable energy target set at COP28.