Solar Electricity Market Report 2025

The solar electricity market size has grown rapidly in recent years. It will grow from $103.58 billion in 2024 to $123.37 billion in 2025 at a compound annual growth rate (CAGR) of 19.1%. The growth in the historic period can be attributed to strong economic growth in emerging markets, high cost of diesel power, initiatives by companies to promote solar electricity, and a rise in research and development (r&d) investments.

The solar electricity market size is expected to see rapid growth in the next few years. It will grow to $219.29 billion in 2029 at a compound annual growth rate (CAGR) of 15.5%. The growth in the forecast period can be attributed to an urge to go green and corporate csr, rising urbanization and technological advancements. Major trends in the forecast period include embracing the adoption of digital technologies and artificial intelligence, implementing solar pairing with storage offers cost synergies, operational efficiencies, and the opportunity to reduce storage capital costs in addition to the solar investment tax credit, growth path for the solar energy industry can be carved out with the successful implementation of such projects with nascent technologies leading to growth in the solar electricity market.

Increased funding from government entities has played a significant role in fostering the expansion of the solar electricity market. Notably, the market has experienced positive outcomes due to heightened governmental investments in advanced research and development initiatives related to solar panel technologies. As an illustration, in February 2023, the International Renewable Energy Agency reported a record-breaking global investment of USD 1.3 trillion in energy transition technologies, showcasing a substantial 19% increase from 2021 levels. Hence, the augmented financial support from government organizations dedicated to advancing solar energy technology has propelled the solar electricity market.

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.

The solar power market is witnessing a growing integration of artificial intelligence (AI) to meet its increasing demands. Artificial intelligence involves the simulation of human intelligence processes by machinery, particularly in computer systems. Common AI applications in the solar industry include expert systems, natural language processing (NLP), speech recognition, and machine vision. The incorporation of machine learning through microgrid controllers and AI represents the latest technological solution in solar energy, addressing the evolving requirements of businesses. These technologies continue to advance to cater to the growing needs of the solar sector, offering energy-efficient solutions. Notably, ongoing software developments are shaping the trajectory of companies applying AI and machine learning to solar energy technology. For instance, in 2022, an innovative project was announced in collaboration with Mekorot, Israel’s national water company, involving the testing of a floating AI-powered solar panel designed to generate electricity by tracking the sun. This solar photovoltaic (PV) system was developed by Israeli startup Xfloat.

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 include 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, Statkraft As, National Grid Plc, Agder Energi Sa, 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, Cobra Instalaciones Y Servicios Sa, Red Electrica Corporacion Sa, Edf En, Saint Gobain, Wagner Solar, Ekotechnik Czech Sro, Svp Solar Sro, Solar Global As, Solartec Holding As, Photon Energy Nv, Modus Energy, Polski Solar Holding, Renesola Ltd, Sunshine Solar Energy Srl, Amerisolar, Altius-Solar, Nivus Gmbh, Danagroup.Hu, Nextera Energy Inc, Vestas Wind Systems A/S, General Electric Co, M. A. Mortenson Company, First Solar, Inc, Sunpower Corporation, Renewable Energy Systems Ltd, Rosendin Electric Inc, Hanwha Corporation, Inkosolar Holding Co. Ltd, Swinerton Renewable Energy, 8minute Solar Energy, Atlas Renewable Energy, Sonnedix Power Holdings Ltd, Enerwhere Sustainable Energy Dmcc, Acwa Power Barka Saog, Alsa Solar Systems Llc, Benban Solar Project, Kathu Solar Park, Ilanga Concentrated Solar Power 1, Jasper Solar Power Project, Kalkbult Solar Plant, Kaxu Solar One, Lesedi Solar Pv Project.

Asia-Pacific was the largest region in the solar electricity market in 2024. 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, 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, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Solar electricity is a form of renewable energy harnessed from sunlight, utilizing the sun's energy either directly as thermal energy or through the utilization of photovoltaic cells embedded in solar panels and transparent photovoltaic glass to produce electrical power. The generated electricity is then fed into electric power transmission systems, responsible for transporting significant power quantities from generating facilities to substations. Additionally, distribution systems play a role in transporting electricity over shorter distances to cater to local customer needs.

The primary technologies involved in solar electricity comprise photovoltaic systems and concentrated solar power systems. A photovoltaic (PV) system comprises solar panels, inverters, and other electrical and mechanical components that leverage the sun's radiation to generate power. Diverse solar modules, including monocrystalline, polycrystalline, cadmium telluride, amorphous silicon cells, among others, are employed across various sectors, including residential, commercial, and industrial applications.

The solar electricity market research report is one of a series of new reports that provides solar electricity market statistics, including solar electricity industry global market size, regional shares, competitors with a solar electricity market share, detailed solar electricity market segments, market trends and opportunities, and any further data you may need to thrive in the solar electricity industry. This solar electricity market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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.

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