1. Growing market diversity strengthens the industry

PV expansion is no longer concentrated on the large industrial nations. New gigawatt markets are emerging in South America, Southeast Asia and Eastern Europe. Projects there not only benefit from falling system costs, but also from government funding and growing investor interest. Decentralized applications, off-grid systems and self-consumption solutions are becoming increasingly important, especially in regions with unstable networks.

2. Changing production and technology

Global production of solar modules rose to around 728 GW in 2024 – this corresponds to an increase of around 19 percent. More than 86 percent of production still comes from China. Technologically, advanced cell types such as n-Type and TopCon, which offer higher efficiency and longer lifespan, dominate. More and more companies are investing in new manufacturing sites outside of China to diversify supply chains and minimize geopolitical risks.

“In 2024, the first signs of price stabilization began to appear towards the end of the year as targeted efforts were made to improve the sustainability of manufacturers,” says Gaëtan Masson, Task 1 Manager at the IEA PVPS program

3. Challenges for the solar industry

Despite the boom, the industry faces significant challenges that could slow growth or make it more expensive:

• Excess capacity puts a strain on prices and returns
• Project financing is made difficult by fluctuating electricity prices
• Grid connectivity is becoming a brake on growth in many countries
• Dependence on China remains geopolitically critical
• Storage and network management are key to system integration

4. Europe: Progress with hurdles

The European Union had around 62.6 GW of newly installed PV capacity in 2024. Germany remains the leader, but Spain, Italy and the Netherlands are also recording strong developments. Challenges continue to exist in the availability of space, permits and the shortage of skilled workers. Municipal projects and local energy cooperatives are becoming increasingly important in driving forward the energy transition at a regional level.

5. The findings show one thing: the future is solar

With over 35 countries adding more than one gigawatt of solar power capacity annually, photovoltaics is now a key global technology. The combination of growing acceptance, technological innovations and new business models is making the sector more robust and competitive. Anyone who relies on storage integration, smart networks and cross-sector applications now will be among the winners of the energy transition in the coming decade.

At the same time, the focus is shifting: instead of pure feed-in, more and more countries are focusing on self-consumption, grid stability and cross-sector integration. Storage solutions, intelligent control and regional value chains are becoming the benchmark for sustainable success. Photovoltaics is therefore not only part of the solution, but also the driving force of a new energy system.