Global Solar PV Industry Outlook 2025: Key Growth Opportunities and Trends Through 2035

Solar PV Global Industry Report 2025: Growth Opportunities

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The Solar PV investment landscape saw a significant surge in 2024, accounting for 45% of global power generation funding, and this trend is expected to continue over the next decade. Despite inflationary pressures in 2023, the decline in module and inverter costs led to reduced project expenses—a rare occurrence in the power sector. The combination of solar PV with Battery Energy Storage Systems (BESS) presents lucrative revenue opportunities for investors.

On June 19, 2025, Research and Markets announced the addition of the report titled “Solar PV Industry, Global, 2023-2035” to their portfolio. The report highlights that solar PV’s share of power generation investment in 2024 is projected to remain strong throughout the next decade. While inflation increased project costs in 2023, falling module and inverter prices contributed to a decrease in overall expenses, continuing into 2024. This trend has made solar PV a more attractive option for residential, commercial, and industrial customers seeking to lower their electricity bills.

The revenue forecasts presented in the report reflect annual capital expenditures (CAPEX) attributed to the year the solar PV asset becomes operational. This CAPEX encompasses costs related to PV modules, inverters, balance-of-system components, installation, and commissioning, particularly applicable to larger commercial, industrial, and grid-scale projects. The report categorizes timelines as follows: short term (1-2 years, 2025-2026), medium term (3-4 years, 2027-2028), and long term (5-11 years, 2029-2035).

### The Impact of Key Strategic Imperatives on the Solar PV Industry

**Competitive Intensity**
The solar PV industry is marked by high competition, particularly due to significant investments by Chinese module producers in new manufacturing facilities, leading to an oversupply despite strong demand. This has resulted in record-low prices for solar modules. For project developers, the reduction in module prices allows for lower project costs, enhancing the competitiveness of solar PV. However, tax credits in the United States necessitate that top qualifying developers use locally sourced materials, which can be more expensive.

**Geopolitical Factors**
Ongoing global conflicts have heightened concerns about energy security, increasing economic competition and the imposition of tariffs, especially in the United States. These tariffs distort the market by making imported goods pricier, thereby favoring domestically produced alternatives. As a result, investments are shifting towards markets outside of China, particularly in the U.S., although China’s stronghold in the industry remains largely unchallenged due to its cost advantages.

**Innovative Business Models**
With advancements in grid intelligence, assets connected to the grid are gaining importance. The residential solar PV market has seen substantial growth over the past two years, and as costs continue to decline, more commercial and industrial entities are likely to install PV systems. The electricity generated by solar PV projects can serve as an asset; when paired with other distributed energy resources (DERs) such as BESS and EV chargers, it opens up avenues for additional revenue or helps mitigate high electricity bills.

### Growth Drivers

Numerous countries have implemented national energy and climate plans with specific renewable energy targets, often designating solar PV as a significant contributor. Support programs—including feed-in tariffs (FITs), incentives, tax credits, quotas, obligations, green certificates, and auctions—further bolster solar PV projects. Technological advancements in storage solutions are enhancing the appeal of solar-plus-storage systems, as customers aim to increase self-consumption and solar farm operators seek to optimize revenue.

After experiencing disruptions in the global supply chain, the costs associated with solar PV technology, especially for modules, are again on the decline. This reduction in total project costs is anticipated to persist. Additionally, rising electricity prices are motivating residential and commercial customers to invest in onsite generation, which aligns with corporate environmental, social, and governance (ESG) objectives.

### Growth Restraints

Securing grid connections can lead to permitting delays, which is a significant concern for the industry. Many countries’ existing transmission and distribution (T&D) infrastructure necessitates substantial investment to ensure effective integration of renewables. The surge in demand has resulted in long wait times for T&D hardware. Adding a BESS to a solar PV installation can help mitigate the T&D investment required.

Permitting processes remain challenging in several regions, with approvals for grid-scale solar PV projects taking up to four years in Europe and North America. Although improvements are underway, these delays will continue to impact project timelines. While most countries offer robust incentives for solar, some have reduced these, which may deter potential investors.

### Growth Opportunities

– **Repowering of Solar PV Assets**
– **Advanced Servicing Propositions**
– **Floating Solar PV**

### Key Industry Trends

1. Module prices have likely stabilized, but manufacturers still face intense pressure.
2. Political changes may introduce uncertainty, but significant disruptions are expected to be limited.
3. Power Purchase Agreements (PPAs) are increasingly comprising a larger share of renewable projects, with solar leading in project volume.
4. The combination of solar with storage is becoming ideal for managing energy needs.
5. Efficiency improvements are driving the growth of advanced solar trackers.
6. Enhanced servicing propositions are becoming vital in solar PV maintenance strategies.
7. Opportunities for revamping and repowering are increasing as more assets approach the end of their optimal operational lifespan.
8. Agri PV developments are showing that crops and solar can coexist harmoniously.
9. Asia is emerging as a key market for floating solar PV (FPV).
10. PV recycling initiatives are reducing the need for virgin materials and minimizing landfill contributions.
11. New materials are being commercially deployed in the industry.
12. Solar technology is increasingly being integrated into urban environments.

### Conclusion

The report provides comprehensive insights into the solar PV industry, outlining growth drivers, challenges, and opportunities. For further information, please visit [Research and Markets](https://www.researchandmarkets.com/r/yg2m7b).