Bloomberg New Energy Finance (BloombergNEF) forecasts new solar PV additions in 2025 to reach up to 698 GW DC, representing a 17% annual growth over the 599 GW DC the world added in 2024.

This forecast is higher than the global market intelligence firm’s January 2025 outlook for 670 GW DC capacity for the current year as was shared by Jenny Chase, BloombergNEF’s Lead Solar Analyst, at the TaiyangNews Solar Market 2024 Review & 2025 Outlook Webinar.  

The revised projections were shared by BNEF analyst Youru Tan at a China Photovoltaic Industry Association (CPIA) seminar recently. According to the revised numbers, global solar PV installations will grow to 753 GW DC in 2026 and further to 780 GW DC in 2027.

Global annual solar PV additions will exceed the 800 GW DC mark in 2028 with 803 GW DC, according to Tan, reaching an eventual 993 GW DC in 2035. He predicted an average annual growth rate of 3.6% between 2025 and 2035.

As large-scale renewable energy projects come online this year, China will likely contribute 368 GW DC/302 GW AC in 2025, spread across utility, commercial and residential segments after installing 277.17 GW DC in 2024. Nevertheless, the CPIA expects the Chinese market to add up to 255 GW capacity in 2025.

The US, which is the next big market on its list, will likely continue its strong solar build despite policy uncertainty under President Donald Trump’s administration as corporates, especially technology companies, continue to invest in solar power. BloombergNEF expects it to grow by 54 GW DC in 2025, albeit at a slower rate. The country installed a record 50 GW DC in 2024.

Tan was also upbeat about the opportunity cheaper solar modules bring to the untapped markets. Between January 2022 and January 2025, module prices have dropped by 60%, cells declined by 44%, wafers by 79%, and polysilicon by 84%, according to BloombergNEF.

However, this has been squeezing the margins of solar PV manufacturers across the supply chain.

With trade tariffs and protectionist measures in place in several big markets, Chinese solar product exports are now expanding to more destinations including Pakistan, Turkey, Saudi Arabia, and Brazil, among others. At the same time, production diversification is also on the rise outside of China.

India now has the largest annual solar module production capacity outside of China with 74 GW, followed by the US with 50 GW and Vietnam with 40 GW. Thailand, with a solar cell manufacturing capacity of 34 GW, and Vietnam, with its 30 GW wafer manufacturing capacity, are the largest producers in the respective categories.