Solar PV Industry Report 2025: Key Growth Opportunities and Trends Shaping the Future of Renewable Energy

Solar PV Global Industry Report 2025: Growth Opportunities

The “Solar PV Industry, Global, 2023-2035” report from Research and Markets highlights significant growth opportunities in the solar photovoltaic (PV) sector. In 2024, solar PV investments represented 45% of all power generation funding, a trend expected to continue for the next decade. Despite inflationary pressures in 2023, the costs of modules and inverters have declined, making project expenses lower—a rare occurrence in the power sector. The integration of solar PV with battery energy storage systems (BESS) presents lucrative revenue opportunities for system owners.

The revenue forecast encompasses annual capital expenditure (CAPEX) accrued in the year the solar PV asset begins operations. This CAPEX includes costs for PV modules, inverters, balance-of-system components, installation, and commissioning, particularly relevant for larger commercial, industrial, and grid-scale projects. The report categorizes timeframes as short (1-2 years: 2025-2026), medium (3-4 years: 2027-2028), and long (5-11 years: 2029-2035).

### Key Strategic Imperatives Impacting the Solar PV Industry

1. **Competitive Intensity**
The solar PV industry experiences intense competition. Chinese manufacturers have invested heavily in new production facilities, resulting in significant overcapacity despite strong demand, which has driven prices to record lows. Analysts note that falling module prices allow project developers to reduce costs, enhancing the competitiveness of solar PV. However, tax credits in the United States require developers to use locally sourced materials, which can be more expensive.

2. **Geopolitical Chaos**
Ongoing conflicts have heightened concerns about energy security, with increased tariffs—mainly from the United States—distorting markets by making imported products more costly and favoring domestic production. While tariffs and incentives are prompting investment in markets outside China, the country’s stronghold on the industry remains largely unchallenged due to its advanced position and low costs.

3. **Innovative Business Models**
As grid intelligence improves, assets connected to the grid gain greater importance. The past two years have seen a surge in residential solar PV installations, and more commercial and industrial entities are adopting PV technology as costs decline. Analysts highlight that the electricity generated from solar PV projects is a valuable asset. When paired with other distributed energy resources (DER) such as BESS and EV chargers, it can create additional revenue streams or help mitigate demand charges and high electricity expenses.

### Growth Drivers

Many nations have established national energy and climate plans with specific renewable energy (RE) targets, often featuring solar PV prominently. Support programs like feed-in tariffs (FITs), incentives, tax credits, quotas, and green certificates bolster this growth.

Technological advancements in storage solutions are making solar-plus-storage increasingly appealing as customers aim to enhance self-consumption, while solar farm operators seek to maximize revenue. Following a brief setback due to global supply chain challenges, the costs of solar PV technology, particularly modules, are declining again, leading to lower overall project costs.

Higher electricity prices are motivating residential and commercial customers to invest in onsite generation, aiding businesses in meeting their environmental, social, and corporate governance (ESG) objectives. Furthermore, geopolitical issues and fluctuating energy commodity prices have underscored the importance of energy security, making solar PV a valuable hedge by ensuring a reliable electricity supply and reducing fossil fuel dependency.

Technological innovations—such as trackers, bifacial panels, and more efficient cells—are enhancing the economic viability of solar PV, making it an appealing investment choice.

### Growth Restraints

Challenges in securing grid connections are leading to permitting delays, a significant concern for the industry. The existing transmission and distribution (T&D) infrastructure in many regions requires substantial investment to effectively integrate renewable sources. The surge in demand has resulted in prolonged delays for T&D hardware. Incorporating BESS into solar PV installations can mitigate additional T&D investment needs.

Permitting processes remain cumbersome in several countries, with approvals for grid-scale solar PV projects in Europe and North America sometimes taking up to four years. Although the situation is improving, these delays continue to hinder project timelines.

While many countries maintain robust incentives for solar, some have scaled back, potentially deterring future investment.

### Growth Opportunities

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

### Key Industry Trends

1. Module prices have stabilized, but manufacturers still face intense pressure.
2. Political changes, such as President Trump’s election, introduce uncertainty, though disruptions should be minimal.
3. Power purchase agreements (PPAs) are increasingly dominating renewable project shares, with solar leading in total project volume.
4. Solar-plus-storage solutions are becoming ideal for both energy producers and consumers.
5. Efficiency gains are driving the growth of advanced solar trackers.
6. Advanced servicing solutions are becoming crucial for solar PV maintenance strategies.
7. Opportunities for revamping and repowering are rising as more assets near the end of their optimal operational lifetimes.
8. Agricultural PV developments enable crops and solar installations to coexist harmoniously.
9. Asia is emerging as the key hotspot for floating solar PV projects.
10. PV recycling minimizes the need for new materials and reduces landfill waste.
11. The deployment of new materials is becoming more common.
12. Solar technology is increasingly integrated into urban environments.

This report provides a comprehensive overview of the solar PV industry, including research scope, end-user segmentation, regional analysis, and forecasts for capacity and CAPEX across various regions and segments.

For further details, visit [Research and Markets](https://www.researchandmarkets.com/r/yg2m7b).