Photovoltaics

Record expansion: Nearly 3 terawatts of installed photovoltaic capacity worldwide in 2025

The figures from the latest report, “Trends in PV Applications 2026”, confirm a further record expansion for 2025, although growth was slower compared with the two exceptional previous years. The International Energy Agency’s (IEA) PVPS (Photovoltaic Power Systems) programme publishes up-to-date data on photovoltaics annually in this report.

A key finding of the report is that global installed photovoltaic capacity reached 2.96 terawatts by the end of 2025. This cumulative total is based on an expansion of around 690 gigawatts installed last year – an increase of around 15 per cent compared with 2024. The figures in the report highlight a significant expansion in photovoltaic capacity in 2025.

However, compared with 2023 and 2024 – years that saw exceptionally high levels of expansion – growth in 2025 was more moderate. The report’s authors have identified very low module costs and sustained strong photovoltaic expansion in China and other key markets as key factors contributing to last year’s global growth.

Germany remains in first place in Europe – China once again well ahead in the global rankings

In 2025, 18 gigawatts of new photovoltaic capacity were installed in Germany. If this capacity were broken down into conventional rooftop solar modules with an output of 400 watts, this would correspond to 45 million modules. In a global comparison of capacity additions, Germany thus ranks fourth and, within the European Union, is well ahead of Spain (12 GW), France (7.4 GW), Italy (6.7 GW), and Poland (3.7 GW).

Viewed as a single market, the EU recorded an increase of 68 gigawatts in installed photovoltaic capacity in 2025. This corresponds to a rise of around five per cent compared with the previous year. In the global ranking, the EU would take second place with this increase.

As in previous years, China has comfortably defended its top position as the world’s largest photovoltaic market. In 2025, 415 gigawatts of new photovoltaic capacity was installed in China, which is 16 per cent more than in 2024 and accounts for approximately 60 per cent of global new installations. India (54 GW) moves up to second place, followed by the United States (43 GW), Germany (18 GW), and Pakistan (14 GW). The fact that photovoltaic expansion is also spreading geographically is evident from the number of 36 countries that had installed more than one gigawatt of photovoltaic capacity by 2025 – three more countries than in 2024.

Next phase of global PV growth begins

The authors of the report also highlight various developments shaping the PV sector. Distributed PV has continued to grow, with 282 gigawatts of new installed capacity (228 gigawatts in 2024). According to the report, the expansion of storage capacity has also accelerated significantly. Combining the annual increases in energy capacity of battery energy storage systems in the EU and the US, these rose from 2.9 GWh in 2020 to 79 GWh in 2025. N-type technologies, which, as the next generation of silicon solar cells, are more efficient, longer-lasting, and more stable than conventional p-type PERC cells, have gained further market share: by 2025, these accounted for around 82 per cent of the crystalline silicon wafers used for cell manufacturing.

The authors report a theoretical market penetration of around 12 per cent for photovoltaics worldwide. At this scale, photovoltaics is no longer a marginal source of electricity in a growing number of markets. In addition to electricity generation itself, the report also sees photovoltaics making an increasing contribution to areas such as the temporal and local provision of electricity, system stability, grid services, and the resilience of the electricity grid.

Background on the Photovoltaics Power Systems Programme

The IEA’s PVPS Programme consists of various research projects, known as “tasks”, to which members from around the world contribute. Germany is active in several tasks. The current report, “Trends in Photovoltaic Applications 2026”, stems from Task 1, “Strategic PV Analysis & Outreach”. In its report, the relevant working group examines annual global developments in the photovoltaic sector. This also includes detailed industry analyses and statistics. Fundamentally, IEA PVPS Task 1 is dedicated to promoting and facilitating the exchange and dissemination of information on the technical, economic, environmental, and social aspects of photovoltaic systems. (av)