In 2024, the global solar photovoltaic (PV) industry experienced explosive growth, with newly installed capacity surpassing 1 terawatt (TW) for the first time. This milestone not only marks a breakthrough in the cost-effectiveness of PV technology but also reflects the accelerating global energy transition and shifting geopolitical dynamics. However, beneath the market boom lie challenges such as supply chain competition, technological rivalries, and diverging regional policies. 

2024 Global Solar PV Market: High Growth Meets Structural Contradictions

According to the International Energy Agency (IEA), global solar PV installations reached 1.2 TW in 2024, a 35% year-on-year increase, accounting for 72% of new renewable energy capacity. China, the U.S., and India contributed 65% of the global growth. 

• China: Led with 420 GW of new installations (35% of the global total), with distributed PV surpassing 50% for the first time. Residential installations in Shandong, Hebei, and Henan exceeded 100 GW. 

• United States: Added 320 GW, driven by the Inflation Reduction Act (IRA) tax credit extension to 2032. Utility-scale projects dominated (70%), but supply chain localization requirements pushed project delays to 18%. 

• India: Installed 35 GW, with module import prices dropping to $0.22/W (down 30% YoY). However, domestic manufacturing utilization remained below 60%, fueling trade protectionism. 

Meanwhile, price wars and technological advancements created a “fire and ice” scenario. 

• Polysilicon oversupply worsened: With global capacity hitting 8 million tons—double the demand. Chinese production costs in Xinjiang and Inner Mongolia fell to ¥30/kg, forcing closures of 120,000 tons of high-cost capacity in Europe and the U.S. 

• Module prices plunged: Chinese 550W bifacial modules hit $0.13/W FOB Europe, down 40% from 2023, triggering bankruptcies like Germany’s SolarWorld. 

• Technology shifts accelerated: TOPCon cell efficiency reached 26.8%, with costs just 5% higher than PERC. HJT cells, with 95% bifaciality, captured over 60% market share in desert regions. 

Four Key Trends for the Global Solar PV Market in 2025

Despite module oversupply, policy uncertainty, protectionism, and grid bottlenecks will slow growth. Global installations are expected to dip to 493 GWdc in 2025. 

Trend 1: A More Complex Policy Landscape

The solar industry must navigate shifting policies. Elections, weaker incentives, power sector reforms, and conservative climate agendas will reduce installations after years of rapid growth. 

Trend 2: Data Centers Drive New Demand

Data centers’ need for stable, zero-carbon power will reshape solar project development. Hybrid projects (solar + wind + storage/gas) will rise, along with innovations in contracts and system design. Solar PPA prices may climb due to competition. 

Trend 3: A Return to Rationality

After a tough 2024, 2025 will see a market correction. Module prices will rise to offset manufacturers’ losses. China will remain the top producer, while India, the U.S., and the Middle East add 100+ GW of capacity. Chinese government support will be key to stabilizing the industry. 

Trend 4: Efficiency Breakthroughs and Material Innovations

• N-type cells will replace PERC as the mainstream. 

• IBC technology will dominate distributed PV. 

• 2,000Vdc inverters will cut costs and improve scalability. 

• AI-powered trackers and robotics will boost efficiency and address labor shortages. 

Regional Market Deep Dive

China: Tech Leadership and Global Expansion 

• Perovskite-silicon tandem cells hit 33.7% efficiency. 

• Exports hit $80 billion, with focus shifting to the Middle East and Latin America. 

U.S.: Local Manufacturing vs. Trade Barriers

• IRA spurred $22 billion in domestic investments. 

• Tariffs raised project costs by 12%, delaying deployments. 

Europe: Green Push and Hydrogen Ambition 

• Germany’s renewables share exceeded 52%. 

• The EU plans 50 GW of electrolyzers for green hydrogen. 

Emerging Markets: High Risk, High Reward

• India’s 40% battery tariff may raise system costs by 20%. 

• Africa’s off-grid solar boom faces currency risks. 

Conclusion

2024 was a historic year for solar PV, but 2025 will be about “technology integration” and “application diversification.” China’s tech edge positions it as a leader in multi-junction cells and integrated energy systems. Yet, geopolitical risks loom. Over the next decade, solar could grow from 6% to 22% of global electricity, becoming a cornerstone of decarbonization—but the race for innovation and influence is just beginning. 

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