Solar Energy Market: Expecting a Slight Pace Slowdown Amidst Continued Growth
Expansion of solar energy market continues at a modest pace
Hang out with us as we talk about the forthcoming predictions for the global solar energy market. Despite the slowed-down growth, it's still poised to keep growing by double-digits, according to industry estimations – but don't expect record-breaking, new-high capacity additions in the near future. This, as per the German Solar Industry Association (BSW Solar) and European umbrella organization Solar Power Europe's consistent forecasts. The worldwide solar energy sector might even eclipse the 600-gigawatt threshold this year, which is approximately double the 2022 figure.
Germany scores high on the international stage, thanks to its relatively smaller territory. In an analysis by BSW Solar last year, Germany ranked fourth with nearly 100 gigawatts of total installed capacity, surpassed only by China, the USA, and India – countries considerably larger in size. By 2024, Germany's solar power installed capacity is predicted to jump by a substantial 14 percent or 17.5 gigawatts.
This year, growth might dip a tad. Carsten Körnig admitted, "We see a slight slowdown." Interestingly, private homeowners might install fewer rooftop solar systems this year, but demand remains robust for solar systems on balconies, with estimates indicating approximately 800,000 such systems in 2024.
As the market flourishes, it might eventually reach a growth saturation point where hefty year-over-year percentage growth slows down due to a larger base. Or, it might be that technological and financial challenges, like integrating solar energy into the grid and ensuring profitable large-scale projects, are influencing percentage growth rates. Government policies and economic incentives also play significant roles in shaping solar market growth, so changes in these factors can impact growth rates over time.
Sources: ntv.de, dpa
On a positive note, the overall global solar market developments continue to predict robust expansion. The utility solar PV EPC market, for example, is projected to soar at a CAGR of 9.5% from 2025 to 2029. Additionally, solar capacity additions are expected to approach 1 TW per year by 2030, increasing from 585 GW in 2024.
[1] Global Solar PV EPC Market to grow at CAGR 9.5% from 2025 to 2029: Market Research report: Market Reports World[2] Achieving annual solar capacity additions of nearly 1 TW per year by 2030: IEA - International Energy Agency[3] Solar Power World, USA: Solar Power World magazine, the leading industry publication for the U.S. solar industry
Read more about the global solar market'
- The Commission has also noted that the utility solar PV EPC market is projected to considerably increase, with a Compound Annual Growth Rate (CAGR) of 9.5% from 2025 to 2029.
- By 2030, solar capacity additions might approach 1TW per year, according to the International Energy Agency (IEA).
- Despite the slight pace slowdown of the global solar energy market, Germany's solar power installed capacity is expected to grow significantly, with an anticipated increase of 14 percent or 17.5 gigawatts by 2024.
- Germany, thanks to its relatively smaller territory, has been able to achieve nearly 100 gigawatts of total installed solar capacity and is predicted to continue expanding in the renewable-energy sector.
- In the solar industry, environmental science plays a crucial role not only in the development of sustainable technologies but also in the analysis of environmental impacts, which is essential for the responsible growth of the market.
- The growth and development of the global solar energy market significantly rely on the finance sector, as investment opportunities and incentives can influence the industry's progress and contribute to the expansion of renewable energy worldwide.
