The global solar energy market is expected to grow at a CAGR of 14.18% from a valuation of US$172.341 billion in 2025 to reach a market size of US$334.456 billion in 2030.
Solar energy is an abundant renewable energy that is sourced from sunlight and then transformed into electrical energy. It can capture this energy for a range of purposes, such as electricity generation, interior lighting, and water heating for residential, commercial, and industrial use. In energy terms, the amount of solar energy consumed is projected to reach 3,478.452 TWh by 2029 from 1,175.699 TWh in 2022, at a CAGR of 16.76%. The market was estimated at US$XX million in 2018.
Photovoltaics, solar heating and cooling, and concentrating solar power are the three primary methods for utilizing solar energy. To operate anything from portable electronics like calculators and road signs up to houses and big corporate enterprises, photovoltaics directly convert sunlight into energy using an electronic process. Both solar heating and cooling (SHC) and concentrating solar power (CSP) applications use the heat produced by the sun to operate conventional electricity-generating turbines in the scenario of CSP power plants or offer space or heating water in the situation of SHC systems. Both of these methods can also store the energy they produce for distribution after the sun sets, using cutting-edge solar and storage technologies.
For consumers and companies to have fair access to clean energy systems like solar, all of these applications rely on supportive policy frameworks at the municipal, state, and federal levels. For instance, as part of the Paris Agreement commitments, India's government set an ambitious target of achieving 175 GW of renewable energy capacity by 2022.
In order to power its activities, Cainiao Network, the logistics division of Alibaba Group, began to use distributed solar power in March 2022. This power was produced by rooftop solar panels placed in the company's bonded warehouses in China. On the rooftop of a 100,000-square-meter warehouse, the company had installed PV power production systems that can generate enough electricity to power more than 3,000 homes annually and have a storage capacity of 7.862 MW. The warehouse operations at Cainiao will be powered by the solar power system, and any extra energy will be sent to the grid. In numerous countries, including China, the US, and the European Union, to name a few, schemes like FiT and capital subsidies are driving solar installation. For instance, in May 2019, China's National Development and Reform Commission (NDRC) declared solar FIT payments for large-scale projects. Commercial and industrial solar photovoltaic projects originated for individual consumption, and extra power sent back into the grid is subject to a FiT of RMB 0.10/kWh.
Additionally, countries like India have identified the potential of renewable energy, such as solar and wind, in decarbonizing the economy and meeting targets as per the Paris Agreement, and the Government of India has been increasingly bent towards increasing the share of renewables in the country's energy mix. The government aimed at 25,750 MW of new power generation capacity from solar plants under the ambitious Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM) scheme by 2022, with more than INR 32,000 crore in overall financials.
Solar PV systems use semiconductor-based solar panels, usually silicon, to directly convert sunlight into electricity. Direct current (DC) electricity flows from the solar cells when sunlight strikes them, exciting electrons. In homes, businesses, and the electrical grid, this DC electricity is transformed into alternating current (AC) via an inverter. For the next five years, solar photovoltaic (PV) is predicted to add significantly more yearly capacity to renewable energy sources than wind and hydropower combined. The IEA reports that in 2022, solar PV generation climbed by 270 TWh or 26 percent to reach nearly 1300 TWh. This surpassed wind power for the first time in 2022 and showed the greatest absolute generation growth of all renewable technologies.
Moreover, population expansion, urbanization, and the electrification of numerous industries, including transportation, are all contributing factors to the ongoing rise in the world's electricity consumption. In areas with sparse or unstable grid infrastructure, solar photovoltaic systems provide a decentralized and scalable way to meet this increasing energy demand.
It is anticipated that the rising industrial demand for electricity and the growing feasibility of smaller-scale solar energy system installations will increase demand even more. Due to the rising affordability of solar energy systems for the residential sector, the residential end-use market is anticipated to grow significantly over the forecast period. Since investments in technologies to boost production efficiency have been made, the cost of these systems has decreased over the past ten years. Product adoption has also increased as a result of incentive programs and policies implemented by numerous governments. It is anticipated that this will lead to an increase in market demand.
The adoption of solar energy is being encouraged by the implementation of supportive policies and ambitious targets for renewable energy by several Asia-Pacific nations, including China, India, and Japan.
Feed-in tariffs, renewable portfolio standards, and solar installation subsidies are a few examples of these policies. A sustainable and scalable answer to this expanding energy need is provided by solar energy.
Consequently, the region has a robust market opportunity for the implementation of solar energy. Furthermore, ambitious large-scale solar energy projects have been initiated by several Asia-Pacific countries. For example, with its vast solar farms and parks, China has led the world in utility-scale solar installations. The region now has more cumulative solar capacity thanks to these large-scale projects, and this has made it a dominant force in the global solar market.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Solar Energy Market Size in 2025 | US$172.341 billion |
| Solar Energy Market Size in 2030 | US$334.456 billion |
| Growth Rate | CAGR of 14.18% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the Solar Energy Market |
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| Customization Scope | Free report customization with purchase |
Segmentation
Page last updated on: September 23, 2025