Global Solar PV Market to Install 649 GW in 2026 Amid Pricing Pressures and Policy Shifts

Global Photovoltaic Market Forecast

• The global solar photovoltaic (PV) industry is projected to install approximately 649 gigawatts (GW) of new capacity in 2026, marking a slight decline compared to the previous year due to market adjustments and policy changes.
• The solar PV market size is expected to grow from USD 323.5 billion in 2025 to around USD 331 billion in 2026, with a compound annual growth rate (CAGR) of 8.1% anticipated through 2035.
• The International Energy Agency (IEA) forecasts solar energy will account for nearly half of the global growth in electricity demand through 2026, with cumulative installed capacity reaching nearly 8 terawatts (TW) by 2034.

Direction Analysis

• The market is entering a phase of adjustment characterized by oversupply and pricing pressure, especially as major players like China adapt to new policies and market dynamics.
• The U.S. solar market is transitioning toward solar-plus-storage solutions to better manage demand volatility and leverage growth in electric vehicles and data centers.
• Key challenges include a decline in federal tax credits and the impact of trade policies, which are reshaping competitive dynamics in the industry.

Emerging Trends

1. Technological Advancements: Innovations such as TOPCon and HJT (Heterojunction Technology) are expected to improve efficiency and lower costs.
2. Policy Impacts: Significant policy shifts in markets including the U.S., China, EU, and India are driving a restructuring of the solar PV market, moving away from globalization-driven expansion.
3. Storage Integration: Increased integration of energy storage systems is critical for managing the intermittent nature of solar energy.
4. Rooftop Solar Growth: Distributed solar installations, especially rooftop systems, are rising due to higher retail electricity prices and supportive policies.
5. Market Consolidation: Consolidation among manufacturers and developers is becoming more pronounced as the industry addresses oversupply and competitive challenges.

Key Players

Major companies driving the solar PV market include:

• LONGi Green Energy
• Trina Solar
• JinkoSolar
• JA Solar
• First Solar

These companies are focused on expanding production capacities and advancing technology to maintain competitive advantage.

Additional Resources

• Wood Mackenzie Solar 2026 Outlook
• Global Solar Market 2026 Outlook
• IEA Renewable Energy Report