In 2025, the world installed a record 664 GW of solar PV capacity, according to the annual Global Market Outlook report by SolarPower Europe, the European solar energy association of which the Serbian RES Association is a member.
After exceptional growth in previous years, the market slowed to 12%, signaling a shift in dynamics. Forecasts indicate a temporary decline in installations.
According to the report, Serbia is expected to reach 1 GW of installed solar capacity during 2026.
The report highlights the central role of solar in strengthening energy security amid new geopolitical tensions and a second fossil fuel crisis in less than four years. In 2025 alone, solar electricity generation was equivalent to nearly five years of LNG flows through the Strait of Hormuz.
-The solar era is firmly established. With yet another record year in 2025, solar continues to outperform all other energy technologies – emphasized Walburga Hemetsberger, CEO of SolarPower Europe.
However, the slowdown in growth and the expected decline in 2026 signal a new reality: scaling solar is no longer just about installing capacity, but about integrating it into the system.
Solar accounted for 77% of all new renewable capacity in 2025, while generation reached 2,778 TWh, covering about 9% of global demand. Total global solar capacity surpassed 3 TW at the start of 2026, tripling in just four years.
The majority of the market remains concentrated in a small number of countries. China dominates with 382 GW of installations (57% of the global share), followed by India with 45.7 GW. The EU-27 added 67.2 GW, with modest growth of 1%.
After more than two decades of continuous growth, global solar installations in 2026 are expected to decline by 8%, to 612 GW. The main reason is a 24% drop in China due to policy changes, outweighing growth in other regions.
Sonia Dunlop, CEO of the Global Solar Council, stressed – Solar + storage plays a crucial role in an increasingly unstable world. The long-term trend of record growth remains unchanged, and the industry is on track to more than double capacity by 2030.
Despite the temporary decline, forecasts remain optimistic: annual installations are expected to reach around 864 GW by 2030. The total expected capacity is 6.6 TW, with potential growth up to 7.6 TW in a high scenario.
Solar will continue to be the main pillar of the energy transition, providing about 60% of the renewable capacity needed to achieve global targets by 2030.
