Solar Power Market Overview, 2030

The worldwide solar energy market has experienced significant growth over recent decades, establishing itself as a primary source of renewable energy. Solar energy, captured mainly through photovoltaic (PV) systems and concentrated solar power (CSP), is sourced from the sun's energy, which is plentiful, clean, and renewable. The origins of solar energy can be traced back to the mid-20th century, marked by the creation of the first practical photovoltaic cell in the 1950s by researchers at Bell Labs. Initial uses were restricted, mainly focused on space exploration; however, as time passed, improvements in technology, lowered costs, and increasing environmental concerns propelled the growth of solar energy.

During the 1990s and early 2000s, the market started to surge, with nations like Germany and Japan becoming pioneers in solar energy adoption. Germany’s Feed-in Tariff (FiT) policy, implemented in the early 2000s, significantly contributed to encouraging solar power uptake by providing fixed payments for electricity generated from renewable sources. The major advancement occurred in the 2010s when solar panel prices decreased dramatically due to technological improvements, economies of scale, and enhanced manufacturing practices. The global solar market grew swiftly, with countries such as China, India, the United States, and various European countries at the forefront of both solar panel installations and the creation of large-scale solar power facilities. By 2020, China emerged as the global leader in solar capacity, followed by the U. S. and India, as numerous other countries expedited their solar energy investments. The shift towards solar energy is propelled by the worldwide initiative for clean energy and the pressing necessity to address climate change. Global agreements, including the Paris Agreement, together with decreasing solar installation expenses, have stimulated additional growth, establishing solar power as a crucial component of the future global energy mix.

According to the research report, 'Global solar power Market Overview, 2030,', the Global solar power market was valued at more than USD 247.51 Billion in 2024, with the CAGR of 12.58% from 2025-2030. The worldwide solar power sector is undergoing rapid expansion owing to various key opportunities and challenges that are influencing its future. One primary opportunity is the rising global demand for renewable energy, fueled by growing concerns regarding climate change and the necessity to lower greenhouse gas emissions. Nations across the globe are enacting supportive policies, like subsidies, tax breaks, and feed-in tariffs, which promote the use of solar technologies.

Furthermore, the ongoing decrease in the cost of solar panels and developments in solar technology, including bifacial panels and solar storage solutions, have rendered solar energy more affordable and accessible to a broader audience. Nonetheless, the market encounters numerous obstacles. Intermittency and energy storage continue to be a major challenge as solar power generation relies on weather and daylight conditions, necessitating efficient energy storage systems for consistent power supply. In addition, the high initial capital investment required for large-scale solar projects may dissuade potential investors, notwithstanding the long-term savings on energy expenses. The availability of land for large-scale solar farms may also pose a constraint in densely populated areas. Growth factors for the global solar power market encompass technological advancements, government incentives, and the rising awareness of environmental sustainability. The solar industry gains from ongoing research and development, resulting in enhanced panel efficiency, improved energy storage solutions, and cost reductions. Corporate investment from significant energy firms is similarly propelling growth. The history of solar power is characterized by consistent technological advancements, from initial experimental cells to the current highly efficient commercial systems. As solar energy becomes more mainstream, promotion and marketing are concentrating on informing consumers about the long-term financial advantages, simplicity of installation, and environmental effects.

Market Drivers

Government Policies and Incentives: Policies from governments, along with subsidies and financial incentives, are significant drivers behind the expansion of the global solar power market. Numerous nations have established renewable energy goals, tax breaks, feed-in tariffs, and grants to promote the use of solar energy. For instance, Germany’s Feed-in Tariff (FiT) policy spurred rapid solar energy growth in the early 2000s, and similar initiatives in countries such as the U. S., China, and India have facilitated a substantial rise in solar installations. These policies foster an attractive investment climate for solar technology, rendering it financially feasible for both individual consumers and major developers to embrace solar energy.

Declining Costs and Technological Advancements: Over the last ten years, the prices of solar panels and associated technologies have significantly dropped due to ongoing technological improvements, economies of scale, and enhanced manufacturing efficiencies. As solar energy grows more affordable, it has become competitive with traditional fossil fuels, even in locations lacking subsidies. Breakthroughs like bifacial solar panels, solar batteries, and perovskite solar cells have additionally boosted efficiency and dependability, establishing solar energy as a more feasible and appealing option. These innovations have resulted in lowered installation expenses and the overall cost of solar energy production, which is anticipated to persist in the future.

Market Challenges

Energy Storage and Intermittency: A significant challenge confronting the solar power market is its intermittency - solar energy production relies on sunlight, making it accessible only during daylight hours or under certain weather conditions. This unpredictability can lead to discrepancies between supply and demand, especially in areas with inconsistent sunlight. Efficient energy storage solutions, such as batteries, are essential for storing surplus energy produced during sunny spells for utilization during overcast days or at night. Nonetheless, energy storage technologies are still developing and can be expensive, posing a hurdle to widespread implementation.

Grid Integration and Infrastructure: For solar power, especially on a large scale, sufficient infrastructure is necessary for its effective incorporation into current power grids. Many grids in underdeveloped or rural regions are not equipped to accommodate the influx of intermittent solar energy. Enhancing grids and investing in smart grid technologies to handle the variability associated with solar energy remains a considerable challenge for several nations. Additionally, transmission infrastructure must be improved to facilitate the movement of solar energy from rural areas (typically where large solar farms are situated) to urban centers, where demand is the highest.

Market Trends

Decentralized Solar Solutions (Residential and Commercial Solar: A prominent trend in the solar market is the increasing uptake of residential and commercial solar systems. An increasing number of homeowners and businesses are opting for solar power to lower their energy expenses, enhance energy autonomy, and support sustainability. Rooftop solar panels, combined with energy storage systems, are becoming more prevalent in both developed and developing nations. This trend is especially strong in regions where electricity costs are elevated or grid reliability poses a challenge.

Floating Solar Farms and Solar in Unconventional Areas: Another rising trend is the creation of floating solar farms. These consist of solar panels placed on bodies of water, like lakes or reservoirs, providing an innovative approach for regions with limited land. Floating solar systems present numerous benefits, such as decreased land usage and enhanced efficiency owing to the cooling effect of water. Nations like China, India, and Japan are currently investigating this technology, and significant growth is anticipated in the upcoming years. Moreover, solar installations in unconventional areas, including deserts or unused landfills, are increasingly common as nations aim to maximize land use for clean energy production.

Photovoltaic (PV) technology is at the forefront and expanding the quickest in the global solar power sector owing to its scalability, lowering costs, and capability to be utilized in both residential and commercial areas.

Photovoltaic (PV) technology, which transforms sunlight directly into electricity using solar cells, has become the leading technology in the global solar power sector. A major contributing factor to its dominance is costs reduction. In the last ten years, prices for PV solar panels have significantly decreased because of technological advancements, economies of scale, and enhancements in manufacturing capacity, rendering solar energy more economical for both residential and commercial uses. Since 2010, the cost of installing solar panels has fallen by over 70%, and this trend of decline is projected to persist, making PV systems more obtainable for a broader array of consumers.

PV technology is also extremely scalable, signifying that it can be deployed at various scales, from small residential rooftop setups to expansive utility-scale solar farms. This versatility enables PV to accommodate varied energy requirements across numerous regions and industries. Moreover, PV solar systems are comparatively straightforward to install and maintain, facilitating their widespread usage. Rooftop solar systems, for example, empower homeowners to attain energy independence, while large-scale solar farms can produce substantial quantities of clean energy, aiding national grids. Another significant aspect propelling PV’s market leadership is its efficiency. Breakthroughs in PV technologies, including monocrystalline silicon cells, bifacial panels, and thin-film technologies, have improved energy conversion rates, enabling solar panels to yield more electricity in smaller areas. Additionally, the worldwide shift towards sustainable energy resources has been expedited by policies and government incentives advocating for the use of renewable technologies such as PV, establishing it as the fastest-growing segment in the solar market. The blend of affordability, adaptability, and ongoing innovation positions photovoltaic technology as a clear frontrunner in the global solar power sector.

Batteries represent the most rapidly growing segment in the worldwide solar power market because of their capacity to store solar energy, facilitating a dependable power supply and improving the efficiency of solar power systems.

The battery storage market is swiftly evolving as an essential addition to solar power systems, establishing itself as the fastest-growing segment in the global solar power market. Solar energy generation is characteristically intermittent, signifying it is produced solely when the sun is shining. This leads to difficulties in providing a consistent power supply, particularly at night or on cloudy days. Batteries tackle this issue by retaining excess energy produced during the day for use during times of insufficient sunlight. This energy storage function considerably enhances the reliability and adaptability of solar energy systems, rendering them more practical for consumers and grid operators alike.

The chief reason for the swift expansion of batteries in the solar market is the growing demand for energy storage solutions. As the global adoption of solar energy increases, both residential and commercial consumers are looking for effective methods to store the energy they generate to decrease dependence on the grid and minimize energy expenses. Batteries, especially lithium-ion batteries, have emerged as the favored storage technology due to their greater energy density, extended lifespan, and reducing costs. In recent years, the prices of battery storage systems have decreased significantly, making them more accessible for various applications. Moreover, government policies and incentives are significantly contributing to the increased uptake of battery storage. Nations with high rates of solar adoption, like the U. S., Germany, and Australia, are promoting the integration of solar and storage systems via tax rebates, subsidies, and financing alternatives. As utilities increasingly rely on smart grids to control fluctuating renewable energy, batteries are becoming fundamental in sustaining grid stability. The rising demand for energy independence, along with advancements in battery technology, guarantees that battery storage is a pivotal factor in the ongoing evolution of the global solar power market.

Roof-mounted solar systems are the quickest expanding segment in the worldwide solar power sector due to their affordability, minimal spatial requirements, and the increasing trend towards decentralized energy solutions.

Roof-mounted solar systems have become the rapidly expanding segment within the international solar power market, mainly due to their effective, cost-efficient method for capturing solar energy in both residential and commercial structures. The primary benefit of roof-mounted solar panels is that they necessitate no extra land for placement, rendering them suitable for urban and suburban locations where space is restricted. This is particularly crucial in highly populated areas where acquiring land for ground-mounted solar installations is both difficult and expensive. As solar technology continues to advance, the performance and cost-effectiveness of roof-mounted panels have greatly improved, enhancing adoption rates.

Decreasing installation expenses, innovations in solar panel effectiveness, and the presence of government incentives have made rooftop solar increasingly appealing. Consumers are attracted to the concept of producing their own electricity and decreasing their dependence on the grid, especially as electricity costs increase. In various areas, residential customers can achieve substantial savings on their energy bills by outfitting their rooftops with solar panels. Moreover, incentives such as net metering (which allows solar owners to sell surplus energy back to the grid) have further encouraged homeowners to set up roof-mounted solar systems. The decentralization of energy generation plays a significant role in promoting the expansion of roof-mounted systems. As more individuals and businesses pursue energy autonomy, decentralized solutions such as rooftop solar enable them to generate their own electricity, reducing dependence on traditional utility providers and lessening the effects of power outages or grid breakdowns. Additionally, many businesses and homeowners are becoming increasingly environmentally aware, aiming to lessen their carbon emissions by utilizing clean energy alternatives. As these components align, roof-mounted solar installations are anticipated to remain the fastest-growing segment in the international solar power market.

The residential solar power sector is leading and expanding most rapidly in the worldwide solar power market due to increasing consumer desires for energy autonomy, financial savings, and ecological sustainability.

The residential solar power market is the most rapidly growing segment in the global solar energy sector, fueled by various factors that address the changing demands and preferences of consumers. One of the main causes for this expansion is the increasing appetite for energy independence. Homeowners are progressively opting for solar energy as a means to lessen their dependence on conventional power grids and alleviate the dangers linked to volatile energy prices and supply interruptions. With solar panels placed on their rooftops, residential users can produce their own electricity and possibly reach energy self-sufficiency, particularly when combined with energy storage solutions like batteries.

Financial savings are another crucial element for the growth of residential solar systems. As the price of solar panels has significantly dropped in recent years due to technological improvements and economies of scale, residential solar installations have become more economically feasible for homeowners. The falling cost of solar technology, along with the presence of government incentives, such as tax credits and subsidies, has rendered solar installations more reachable for a broader spectrum of consumers. Additionally, with net metering regulations applicable in many areas, homeowners can return surplus energy back to the grid, thereby further decreasing their electricity expenses. Environmental sustainability is also a motivating factor, as consumers grow more aware of their carbon footprint and the ecological consequences of traditional energy sources. Residential solar power presents a clean energy alternative that corresponds with the increasing global initiative towards renewable energy and climate change mitigation. As ecological concerns and energy independence gain prominence, the residential solar power market continues to expand swiftly, reinforcing its status as the fastest-growing sector in the global solar power market.

The Asia-Pacific sector is the quickest expanding in the worldwide solar energy market due to its substantial population, rising energy needs, and strong governmental backing for renewable energy projects.

The Asia-Pacific (APAC) region has emerged as the quickest expanding segment in the worldwide solar energy market, propelled by a blend of factors including swift economic growth, increasing energy necessities, and government-supported renewable energy projects. This area is home to some of the planet’s most populated nations, including China and India, where energy usage is soaring rapidly as a result of urban expansion, industrial growth, and population increase. As these nations develop, the need for energy escalates, placing considerable strain on conventional power sources like coal and natural gas. Solar energy has become an appealing alternative, providing a sustainable and clean energy option to address this rising demand.

Specifically, China has emerged as a global frontrunner in solar energy, both regarding production and installation capacity. The nation has made significant investments in solar technologies and has led the way in manufacturing solar panels, making them more cost-effective and accessible throughout the world. India, likewise, has established ambitious targets for enhancing its solar capacity, with the government aiming for 100 GW of solar power by 2022, driven by both policy support and international investment in the renewable industry. Government regulations in the APAC region, such as feed-in tariffs, tax benefits, and subsidies, have further expedited the adoption of solar energy, making it more economically viable for both residential and commercial users. Moreover, the region enjoys abundant sunlight, particularly in nations like India, Australia, and parts of Southeast Asia, making it suitable for solar energy production. As renewable energy emerges as a global priority, the Asia-Pacific region’s commitment to clean energy, along with supportive policies and technological advancements, positions it as the fastest-growing area in the worldwide solar power market, with rapid uptake anticipated to persist.

Key Developments

• 2000-2010: The global solar power sector began to gain traction in the early 2000s. In 2004, Germany launched its Feed-in Tariff (FiT) initiative, which paved the way for widespread solar utilization. By 2009, worldwide solar installations surpassed 20 GW, with nations like Spain and Germany at the forefront of solar energy utilization. Throughout this timeframe, advancements in photovoltaic (PV) technology and governmental incentives significantly contributed to rising global interest in solar power.
• 2011-2015: Starting in 2011, the solar power sector saw considerable expansion. China emerged as a key player, and its capacity for manufacturing solar panels increased remarkably, leading to a substantial reduction in solar panel prices. By 2014, global solar installations exceeded 180 GW. Solar energy also began penetrating residential markets in nations such as the U. S., Japan, and Australia. In 2015, the Paris Agreement regarding climate change was established, further enhancing the drive for renewable energy globally, with solar power leading the charge.
• 2016-2020: In this period, worldwide solar capacity surpassed 500 GW by 2020, fueled by cost reductions, enhanced efficiency, and stronger political backing. The price of solar panels continued to decrease, making solar energy more accessible for both commercial and residential users. In 2017, India initiated its National Solar Mission, targeting 100 GW of solar capacity by 2022. In 2020, the market also witnessed an increased incorporation of solar storage solutions such as batteries, addressing the issue of solar power intermittency.

Major Companies present in the market

Canadian Solar Inc., Trina Solar Co., Limited, Jinko Solar Holding Co., Limited, Longi Green Energy Technology Co., Limited, JA Solar Technology Co., Limited, Sunpower Corporation, First Solar Inc., Hanwha Corporation, Abengoa, S.A., Engie SA.

Considered in this report

• Geography: Global
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• Global solar power market with its value and forecast along with its segments
• Region-wise solar power market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions covered in the report

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle-East & Africa

Types of Technology in the report

• Solar Photovoltaic
• Concentrated Solar Power (CSP)
• Others

By Product

• Solar Panels
• Charge Controllers
• Batteries
• Inverters
• Others

By Installation

• Ground mounted
• Roof mounted
• Others

By Application in the report

• Residential
• Commercial/ Industrial
• Others

The approach of the report

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to solar power industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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