Solar Market Report 2026

The solar market size has grown steadily in recent years. It will grow from $282.25 billion in 2025 to $295.65 billion in 2026 at a compound annual growth rate (CAGR) of 4.7%. The growth in the historic period can be attributed to expansion of renewable energy policies, declining photovoltaic module costs, increasing electricity demand, early adoption of grid-connected solar systems, growth of utility-scale solar projects.

The solar market size is expected to see steady growth in the next few years. It will grow to $342.55 billion in 2030 at a compound annual growth rate (CAGR) of 3.7%. The growth in the forecast period can be attributed to expansion of net-zero commitments, increasing investments in energy storage integration, rising adoption of bifacial and advanced solar technologies, growing focus on decentralized energy generation, expansion of smart grid infrastructure. Major trends in the forecast period include increasing deployment of high-efficiency solar modules, rising adoption of utility-scale solar installations, growing integration of solar with energy storage systems, expansion of distributed rooftop solar solutions, enhanced focus on grid-connected solar infrastructure.

The increasing demand for renewable energy sources is expected to drive the growth of the solar market in the coming years. Renewable energy sources are natural resources, such as sunlight, wind, water, and biomass, that are continuously replenished and can be used to generate clean and sustainable energy. Demand for solar energy is fueled by the need for renewable solutions that reduce carbon emissions, lower energy costs, and decrease reliance on finite fossil fuels. Solar power enables the generation of clean electricity and heat by harnessing abundant sunlight, helping reduce fossil fuel dependence and support long-term sustainability goals. For example, in December 2024, Eurostat, a Luxembourg-based government organization, reported that renewable energy sources accounted for 24.5% of the EU’s gross final energy consumption in 2023, representing an increase of about 1.4 percentage points compared to 2022. Consequently, the growing demand for renewable energy sources is fueling the expansion of the solar market.

Major companies operating in the solar market are concentrating on developing advanced solutions, such as high-efficiency solar modules, to improve energy yield and system reliability. High-efficiency solar modules increase power generation per unit area and maintain consistent performance under varying operating conditions, making them suitable for residential, commercial, and utility-scale applications. For example, in October 2025, Vikram Solar Limited, an India-based manufacturer, launched the Hypersol Pro solar panel, which offers module efficiency of up to 23.69% and eliminates reverse power loss. The panel delivers stable output even under partial shading or uneven rooftop conditions and is designed for residential, commercial, industrial, and utility-scale installations. Hypersol Pro reduces mismatch losses, ensures more predictable energy output, and aligns with India’s renewable energy objectives under the Production-Linked Incentive scheme, while also creating export opportunities in regions with stringent quality standards such as Europe and Africa.

In September 2025, SunPower Inc., a US-based solar energy technology company, acquired Sunder Energy for an undisclosed amount. Through this acquisition, SunPower aims to broaden its renewable energy solutions portfolio and strengthen its capabilities in energy storage and grid integration. Sunder Energy LLC is a US-based energy technology company specializing in advanced energy storage systems and smart grid solutions for residential and commercial applications.

Major companies operating in the solar market are Reliance Industries Limited, Hanwha Group, NTPC Limited, JSW Group, Kyocera Corporation, Trina Solar Co. Ltd., JinkoSolar Holding Co. Ltd., Sungrow Power Supply Co. Ltd., Canadian Solar Inc., First Solar Inc., LONGi Green Energy Technology Co. Ltd., SolarEdge Technologies Inc., Sunrun Inc., Yingli Solar, Shoals Technologies Group Inc., Sterling and Wilson Renewable Energy Limited, Waaree Energies Limited, Solaria Energía y Medio Ambiente S.A., Vikram Solar Limited, Borosil Renewables Limited, Loom Solar.

Asia-Pacific was the largest region in the solar market in 2025. The regions covered in the solar market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the solar market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The solar market consists of sales of solar panels, solar mounting structures, and solar inverters. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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