Solar Electricity Global Market Report 2026

Solar electricity is a form of renewable energy harnessed from sunlight, utilizing the sun's energy either directly as thermal energy or through the utilization of photovoltaic cells embedded in solar panels and transparent photovoltaic glass to produce electrical power. The generated electricity is then fed into electric power transmission systems, responsible for transporting significant power quantities from generating facilities to substations. Additionally, distribution systems play a role in transporting electricity over shorter distances to cater to local customer needs.

The primary technologies involved in solar electricity comprise photovoltaic systems and concentrated solar power systems. A photovoltaic (PV) system comprises solar panels, inverters, and other electrical and mechanical components that leverage the sun's radiation to generate power. Diverse solar modules, including monocrystalline, polycrystalline, cadmium telluride, amorphous silicon cells, among others, are employed across various sectors, including residential, commercial, and industrial applications.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are influencing the solar electricity market by increasing costs of imported photovoltaic modules, silicon wafers, inverters, mounting structures, and power electronics. Utility-scale projects in North America and Europe are most affected due to module import dependence, while Asia-Pacific faces pricing volatility in export-driven manufacturing. These tariffs are raising project development costs and delaying commissioning timelines. However, they are also driving domestic module manufacturing, regional supply chain diversification, and investment in local solar production capacity.

The solar electricity market research report is one of a series of new reports from The Business Research Company that provides solar electricity market statistics, including solar electricity industry global market size, regional shares, competitors with a solar electricity market share, detailed solar electricity market segments, market trends and opportunities, and any further data you may need to thrive in the solar electricity industry. This solar electricity market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The solar electricity market size has grown rapidly in recent years. It will grow from $117.74 billion in 2025 to $138.62 billion in 2026 at a compound annual growth rate (CAGR) of 17.7%. The growth in the historic period can be attributed to declining solar module costs, expansion of grid-connected renewable projects, increasing electricity demand, supportive renewable energy policies, growth of distributed generation models.

The solar electricity market size is expected to see rapid growth in the next few years. It will grow to $236.19 billion in 2030 at a compound annual growth rate (CAGR) of 14.3%. The growth in the forecast period can be attributed to increasing investments in grid modernization, rising adoption of high-efficiency PV technologies, expansion of utility-scale solar auctions, growing demand for clean electricity, increasing electrification across end-use sectors. Major trends in the forecast period include expansion of utility-scale solar power plants, rising deployment of distributed rooftop solar systems, growing adoption of bifacial solar panels, increasing grid integration of solar power, enhanced focus on transmission efficiency.

Anticipated growth in the solar electricity market is further driven by the escalating adoption of renewable energy sources for power generation. Renewable energy encompasses energy derived from naturally replenishing sources such as sunlight, wind, water, geothermal heat, and organic matter, offering sustainable alternatives with minimal environmental impact. Against the backdrop of environmental concerns, reduced greenhouse gas emissions, and the imperative shift away from fossil fuels for climate change mitigation, renewable energy sources have become integral. The adoption of renewable energy supports the solar electricity market by creating a conducive environment for sustainable energy solutions, fostering consumer demand, and attracting investments and incentives for solar power technologies and installations. Supported by this trend, the International Energy Agency projects an increase in the global contribution of renewable energy to the power generation mix, from 29% to 35% by 2025, underscoring the growing adoption of renewable sources for electricity generation and its positive impact on the solar electricity market.

Leading companies in the solar electricity market are actively engaged in the development of community solar projects to maintain their market position. Community solar projects involve collaborative investments from multiple individuals, businesses, or organizations in a centralized solar energy installation, allowing shared benefits. As an illustration, in September 2023, SolarEdge Technologies Inc., an Israeli renewable energy semiconductor manufacturing company, launched the high-power three-phase SolarEdge 330kW Inverter and the H1300 Power Optimizer. Specifically designed for community solar, agri-PV, and small-to-medium scale ground-mount utility PV projects, this advanced inverter and optimizer solution aim to enhance energy production efficiency and reduce costs in the utility solar segment. It offers improved return on investment (ROI), design flexibility, safety features, module-level monitoring, and a lower Levelized Cost of Energy (LCOE). Suited for the expanding community solar market, the technology provides developers with site selection flexibility and contributes to resource conservation by minimizing the need for extensive site grading.

In September 2023, EDF Renewables, a UK-based company specializing in renewable energy production, development, and operations, acquired SAS Energy for an undisclosed amount. This acquisition is intended to boost EDF's growth in the renewable energy sector by adding more than 45 solar projects currently in construction and development to its portfolio. SAS Energy is a UK-based provider of solar energy solutions for the commercial and industrial sectors.

Major companies operating in the solar electricity market are SPIC Solar, Enel SpA, Canadian Solar Inc, Engie, Adani Green Energy Limited, Datang International Power Generation Company Limited, Acciona Energia S.A, Electricite De France SA, Huaneng Power International Inc., Trina Solar Limited, Waaree Group, Tata Power Solar Systems Ltd., Urja Global Limited, Wuxi Suntech Power Co. Ltd., Azure Power, Vivaan Solar, Ja Solar Holdings Co. Ltd, Aiko Solar, Zhongli, Suntech, IBC Solar AG, Centrotherm International Ag, Schott Solar Ag, Ecotricity Group Ltd, Lightsource BP Renewable Energy Investments Limited, Hive Energy, Solaria Energia Y Medio Ambiente Sa, Iberdrola SA, EDF En, Wagner Solar

Asia-Pacific was the largest region in the solar electricity market in 2025. Western Europe was the second largest region in the global solar electricity market analysis. The regions covered in the solar electricity market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the solar electricity market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The solar electricity market consists of sales of passive solar gain, solar thermal, concentrated solar power, and solar photovoltaics. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Solar Electricity Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses solar electricity market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for solar electricity ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The solar electricity market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Technology: Photovoltaic Systems; Concentrated Solar Power Systems
• 2) By Solar Module: Monocrystalline; Polycrystalline; Cadmium Telluride; Amorphous Silicon Cells; Other Solar Modules
• 3) By End User: Residential; Commercial
• Subsegments:
• 1) By Photovoltaic Systems: Crystalline Silicon Photovoltaic (C-Si) Systems; Thin-Film Photovoltaic Systems; Bifacial Solar Panels; Building-Integrated Photovoltaics (Bipv)
• 2) By Concentrated Solar Power Systems: Parabolic Trough Systems; Solar Power Towers; Fresnel Reflectors; Dish Or Engine Systems
• Companies Mentioned: SPIC Solar; Enel SpA; Canadian Solar Inc; Engie; Adani Green Energy Limited; Datang International Power Generation Company Limited; Acciona Energia S.A; Electricite De France SA; Huaneng Power International Inc.; Trina Solar Limited; Waaree Group; Tata Power Solar Systems Ltd.; Urja Global Limited; Wuxi Suntech Power Co. Ltd.; Azure Power; Vivaan Solar; Ja Solar Holdings Co. Ltd; Aiko Solar; Zhongli; Suntech; IBC Solar AG; Centrotherm International Ag; Schott Solar Ag; Ecotricity Group Ltd; Lightsource BP Renewable Energy Investments Limited; Hive Energy; Solaria Energia Y Medio Ambiente Sa; Iberdrola SA; EDF En; Wagner Solar
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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