Solar Power Market Size and Share - Growth Analysis Report and Forecast Trends 2026-2030

The global solar power market encompasses the production, installation, and operation of photovoltaic systems for electricity generation. It reached $153.271 billion in 2026, up from $137.02 billion in 2025, reflecting sustained expansion despite short-term supply chain and policy headwinds in key markets like the U.S.

• •The market is projected to grow at a CAGR of 11.86% through 2030, driven by falling panel costs and grid parity in most regions.
• •Global solar capacity surpassed 1.4 terawatts by 2025, with utility-scale installations accounting for over 60% of new deployments.

Government incentives, climate commitments under the Paris Agreement, and corporate renewable energy procurement are major catalysts for solar adoption. Technological advancements have reduced the levelized cost of solar electricity to under $0.05 per kWh in sun-rich regions, making it the cheapest source of new power in many countries.

• •Over 80 countries have implemented feed-in tariffs, tax credits, or net metering policies to support solar deployment.
• •Corporate demand for renewables surged in 2025, with over 200 Fortune 500 companies committing to 100% renewable power, primarily via solar.

The market is segmented by application (residential, commercial & industrial, utility-scale) and geography, with Asia-Pacific leading in both capacity and manufacturing. China dominates global solar panel production and installation, while the U.S. and EU are key growth markets despite policy volatility.

• •Asia-Pacific accounted for nearly 60% of global solar installations in 2025, led by China, India, and Vietnam.
• •The U.S. installed 43.1 GWdc in 2025 despite a 14% year-over-year decline due to supply chain delays and tariff uncertainties.

What are the recent trends and outlook?

The market is shifting toward higher-efficiency PERC and TOPCon cells, bifacial modules, and integrated storage solutions. Emerging markets in Latin America, the Middle East, and Africa are poised for rapid growth, while policy stability and grid modernization remain critical for sustained expansion.

• •Bifacial solar panels are projected to capture over 35% of the utility-scale market by 2030 due to higher energy yields.
• •Solar-plus-storage deployments increased by 45% year-over-year in 2025, driven by grid reliability needs and time-of-use pricing.