Solar PV Global Industry Report 2025: Short, Medium, and Long Terms Forecasts - 1 to 2 years (2025-2026), 3 to 4 years (2027-2028), and 5 to 11 years (2029-2035) - ResearchAndMarkets.com

The "Solar PV Industry, Global, 2023-2035" report has been added to ResearchAndMarkets.com's offering.

Solar PV accounted for 45% of all power generation investment in 2024, and is forecast to maintain this throughout the next decade. Inflation drove up project costs in 2023, but lower module and PV inverter costs meant costs started to decline in 2023 and continued to decline in 2024-a rarity for the power industry.

Residential, commercial, and industrial customers are increasingly investing in solar PV as a way to reduce electricity bills as the payback becomes more attractive. When combined with battery energy storage systems (BESS), solar PV can provide system owners with additional revenue opportunities.

The revenue forecast reflects annual CAPEX and is accrued to the year the solar PV asset becomes operational. The CAPEX includes PV modules, inverters, balance-of-system costs, installation, and commissioning costs (these apply to larger commercial and industrial and grid-scale projects).

Short, medium, and long terms refer to 1 to 2 years (2025-2026), 3 to 4 years (2027-2028), and 5 to 11 years (2029-2035), respectively.

The Impact of the Top 3 Strategic Imperatives on the Solar PV Industry

Competitive Intensity

Why: The level of competition in the solar PV industry is high. Chinese module producers have invested huge sums in new production facilities, meaning there is now major overcapacity, even with the high levels of demand. This has driven prices to record lows.

Analyst Perspective: For project developers, the declining module process are enabling them to bring down projects costs, thus making solar PV more competitive. Tax credits in the United States are partially countering this, because top qualify developers need to prove they are using locally sourced materials which have a higher cost.

Geopolitical Chaos

Why: Major conflicts have made energy security a major concern. Increasing economic competition is resulting in a higher use of tariffs, principally by the United States. Tariffs act to distort industries by making imported goods more expensive and domestically produced goods more competitive.

Analyst Perspective: Tariffs (and incentives) are increasing investment in markets outside of China, particularly in the United States. Despite this, China's dominance will be largely unchallenged because it is so far ahead already and has driven costs so low.

Innovative Business Models

Why: As the intelligence of the grid increases, those assets on the grid gain more importance. There has been strong growth in residential solar PV in the past two years, and more commercial & industrial businesses will install PV as the costs continue to decline.

Analyst Perspective: The electricity produced from Solar PV projects is an asset. When combined with other DER such as BESS and EV Chargers it can generate additional revenues for the asset owners - or it can mitigate potential demand charges or high electricity bills.

Growth Drivers

• Many countries have national energy and climate plans that set specific targets for RE, with solar PV usually accounting for a significant percentage of projects, with support programs such as FITs, incentives, tax credits, quotas, obligations, green certificates, and auctions.
• Cost reductions and advancements in storage technologies make solar+ storage an increasingly attractive proposition as customers look to boost self-consumption and solar farm operators seek to maximize revenues.
• After a blip because of pressures in the global supply chain, solar PV technology costs are falling again, particularly for modules, meaning that total project costs declined and are forecast to continue a slow decline.
• Higher electricity costs incentivize residential and C&I customers to invest in onsite generation while helping the latter comply with corporate environmental, social, and corporate governance (ESG) targets.
• Geopolitical concerns and the recent volatility in energy commodity prices have made energy security a major issue in many countries. Installing solar PV is a hedge against this, as it ensures a supply of electricity, reducing consumption of fossil fuels.
• Technological advancements, such as trackers, bifacial panels, and higher-efficiency cells, boost the project economics of solar PV, making it a more attractive investment option.

Growth Restraints

• Securing grid connections results in permitting delays, a major concern for the industry. The existing T&D infrastructure in many countries requires significant investment to ensure the effective integration of renewables. Strong demand growth has led to long delays for T&D hardware. Adding a BESS to a solar PV installation can reduce the amount of additional T&D investment that is required.
• Permitting remains a challenge in several countries, taking up to 4 years to win approval for a grid-scale solar PV project in Europe and North America. The situation is improving but will remain a factor in delaying projects.
• While most countries still provide strong incentives for solar, some have reduced them, deterring potential investors.

Growth Opportunities

• Repowering of Solar PV Assets
• Advanced Servicing Propositions
• Floating Solar PV

Key Industry Trends

• Trend 1: Module Prices have Bottomed Out, but Pressure on Manufacturers Remains Intense
• Trend 2: President Trump's Election Brings Uncertainty to the Industry, but it Should Only Suffer Limited Disruption
• Trend 3: PPA's Continue to Account for a Higher Share of Renewable Projects - Solar Dominates the Total Volume of Projects
• Trend 4: Solar-plus-storage, the Perfect Match for Both Sides of the Meter
• Trend 5: Efficiency Gains Drive Growth of Advanced Solar Trackers
• Trend 6: Advanced Servicing Propositions are Becoming an Increasingly Crucial Component of Solar PV Maintenance Strategies
• Trend 7: Revamping and Repowering Opportunities are Increasing as More Assets Reach the End of their Optimum Operational Lifetime
• Trend 8: Agri PV Developments Mean Crops and Solar can Coexist
• Trend 9: Asia is the Future Hotspot for Floating Solar PV FPV
• Trend 10: PV Recycling Reduces the Requirement for Virgin Materials and Minimizes Landfilling
• Trend 11: New Materials are being Deployed Commercially
• Trend 12: Solar is being Increasingly Incorporated in Urban Environments

Key Topics Covered:

Research Scope

• Scope of Analysis
• End-user Segmentation
• Regional Segmentation
• Key Value Chain Competitors

Strategic Imperatives

• Why is it Increasingly Difficult to Grow?
• The Strategic Imperative
• The Impact of the Top 3 Strategic Imperatives on the Solar PV Industry

Growth Opportunity Analysis

• Key Findings
• Growth Drivers
• Growth Restraints
• Value Chain

Global Forecasts

• Forecast Assumptions
• Annual Capacity Addition Forecast by Region
• Cumulative Installed Capacity Forecast by Region
• Capex Forecast by Region
• Annual Capacity Additions by Segment
• Cumulative Installed Capacity Forecast by Segment
• Capex Forecast by Segment
• Electricity Generated from Solar PV in 2035
• Installed Capacity & Electricity Generation in 2035

Regional Analysis

• Capex Forecast - China
• Capex Forecast - North America
• Capex Forecast by Country - North America
• Capex Forecast - Latin America
• Capex Forecast by Country - Latin America
• Capex Forecast - Western Europe
• Capex Forecast by Country - Western Europe
• Capex Forecast - Central & Eastern Europe
• Capex Forecast by Country - Central & Eastern Europe
• Capex Forecast - East Asia
• Capex Forecast by Country - East Asia
• Capex Forecast - India & South Asia
• Capex Forecast by Country - India & South Asia
• Capex Forecast - ANZ & Pacific
• Capex Forecast by Country - ANZ & Pacific
• Capex Forecast - ASEAN
• Revenue Forecast - ASEAN
• Capex Forecast - Middle East & North Africa
• Capex Forecast by Country - Middle East & North Africa
• Capex Forecast - Sub-Saharan Africa
• Capex Forecast by Country - Sub-Saharan Africa
• Capex Forecast - Russia & CIS
• Capex Forecast by Country - Russia & CIS

Appendix & Next Steps

• Benefits and Impacts of Growth Opportunities
• Next Steps

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