Solar Electricity Market Report 2026

The solar electricity market size has grown rapidly in recent years. It will grow from $117.74 billion in 2025 to $138.62 billion in 2026 at a compound annual growth rate (CAGR) of 17.7%. The growth in the historic period can be attributed to declining solar module costs, expansion of grid-connected renewable projects, increasing electricity demand, supportive renewable energy policies, growth of distributed generation models.

The solar electricity market size is expected to see rapid growth in the next few years. It will grow to $236.19 billion in 2030 at a compound annual growth rate (CAGR) of 14.3%. The growth in the forecast period can be attributed to increasing investments in grid modernization, rising adoption of high-efficiency PV technologies, expansion of utility-scale solar auctions, growing demand for clean electricity, increasing electrification across end-use sectors. Major trends in the forecast period include expansion of utility-scale solar power plants, rising deployment of distributed rooftop solar systems, growing adoption of bifacial solar panels, increasing grid integration of solar power, enhanced focus on transmission efficiency.

Anticipated growth in the solar electricity market is further driven by the escalating adoption of renewable energy sources for power generation. Renewable energy encompasses energy derived from naturally replenishing sources such as sunlight, wind, water, geothermal heat, and organic matter, offering sustainable alternatives with minimal environmental impact. Against the backdrop of environmental concerns, reduced greenhouse gas emissions, and the imperative shift away from fossil fuels for climate change mitigation, renewable energy sources have become integral. The adoption of renewable energy supports the solar electricity market by creating a conducive environment for sustainable energy solutions, fostering consumer demand, and attracting investments and incentives for solar power technologies and installations. Supported by this trend, the International Energy Agency projects an increase in the global contribution of renewable energy to the power generation mix, from 29% to 35% by 2025, underscoring the growing adoption of renewable sources for electricity generation and its positive impact on the solar electricity market.

Leading companies in the solar electricity market are actively engaged in the development of community solar projects to maintain their market position. Community solar projects involve collaborative investments from multiple individuals, businesses, or organizations in a centralized solar energy installation, allowing shared benefits. As an illustration, in September 2023, SolarEdge Technologies Inc., an Israeli renewable energy semiconductor manufacturing company, launched the high-power three-phase SolarEdge 330kW Inverter and the H1300 Power Optimizer. Specifically designed for community solar, agri-PV, and small-to-medium scale ground-mount utility PV projects, this advanced inverter and optimizer solution aim to enhance energy production efficiency and reduce costs in the utility solar segment. It offers improved return on investment (ROI), design flexibility, safety features, module-level monitoring, and a lower Levelized Cost of Energy (LCOE). Suited for the expanding community solar market, the technology provides developers with site selection flexibility and contributes to resource conservation by minimizing the need for extensive site grading.

In September 2023, EDF Renewables, a UK-based company specializing in renewable energy production, development, and operations, acquired SAS Energy for an undisclosed amount. This acquisition is intended to boost EDF’s growth in the renewable energy sector by adding more than 45 solar projects currently in construction and development to its portfolio. SAS Energy is a UK-based provider of solar energy solutions for the commercial and industrial sectors.

Major companies operating in the solar electricity market are SPIC Solar, Enel SpA, Canadian Solar Inc, Engie, Adani Green Energy Limited, Datang International Power Generation Company Limited, Acciona Energia S.A, Electricite De France SA, Huaneng Power International Inc., Trina Solar Limited, Waaree Group, Tata Power Solar Systems Ltd., Urja Global Limited, Wuxi Suntech Power Co. Ltd., Azure Power, Vivaan Solar, Ja Solar Holdings Co. Ltd, Aiko Solar, Zhongli, Suntech, IBC Solar AG, Centrotherm International Ag, Schott Solar Ag, Ecotricity Group Ltd, Lightsource BP Renewable Energy Investments Limited, Hive Energy, Solaria Energia Y Medio Ambiente Sa, Iberdrola SA, EDF En, Wagner Solar.

Asia-Pacific was the largest region in the solar electricity market in 2025. Western Europe was the second largest region in the global solar electricity market analysis. The regions covered in the solar electricity market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the solar electricity market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The solar electricity market consists of sales of passive solar gain, solar thermal, concentrated solar power, and solar photovoltaics. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.