The Global and Indian PV Solar Panel Market Scenario in 2025

The photovoltaic PV solar panel market has experienced significant growth in recent years, driven by technological advancements, supportive policies, and increasing environmental awareness. As of 2025, the global and Indian PV solar panel markets exhibit dynamic trends and developments.​

Global PV Solar Panel Market Overview

The global PV solar panel market has witnessed remarkable expansion, with projections indicating a substantial increase in market size. Factors such as declining costs, improved efficiency, and heightened focus on renewable energy sources have contributed to this growth. China continues to dominate the global solar panel industry, accounting for a significant share of production and installations. The country's extensive manufacturing capabilities, cost advantages, and government support have solidified its position as a global leader in solar energy.

In contrast, regions like Europe and North America are striving to enhance their solar energy capacities. While Europe has made strides in solar adoption, challenges such as high production costs and policy uncertainties have hindered its competitiveness. The United States, on the other hand, has implemented measures to encourage domestic solar manufacturing, including incentives and tariffs aimed at reducing reliance on imports.

Indian PV Solar Panel Market Scenario

India has emerged as a prominent player in the global solar energy landscape, achieving significant milestones in PV solar panel installations and manufacturing.​

Record-Breaking Installations

In 2024, India set a new record by installing 24.5 GW of solar capacity, marking a 145% increase from the previous year. This achievement brought the country's total renewable energy capacity to 209.44 GW, with solar accounting for 47% of the total . The growth was driven by substantial additions in utility-scale projects, rooftop systems, and off-grid installations.

Regional Contributions

States like Rajasthan, Gujarat, and Tamil Nadu played pivotal roles in India's solar expansion. Rajasthan led with 7.09 GW of new installations, followed by Gujarat with 4.32 GW and Tamil Nadu with 1.73 GW. These regions leveraged abundant sunlight and favorable policies to attract investments and accelerate project development.

Rooftop Solar Initiatives

The "PM Surya Ghar: Muft Bijli Yojana," a government initiative, significantly boosted rooftop solar installations. By the end of 2024, approximately 700,000 rooftop systems were installed under this program, contributing to a 53% year-on-year growth in rooftop solar capacity.

Off-Grid Solar Expansion

Off-grid solar solutions also saw remarkable growth, with 1.48 GW of capacity added in 2024, representing a 197% increase from the previous year. These systems are instrumental in providing electricity to remote and underserved areas, enhancing energy access and supporting sustainable development goals .​

Challenges and Opportunities

Despite the impressive growth, India faces challenges in its solar energy journey. Financial struggles, planning inefficiencies, and regulatory weaknesses have been observed in the sector. For instance, allegations of corruption in major solar projects have exposed vulnerabilities in the industry.

However, these challenges also present opportunities for improvement. Strengthening regulatory frameworks, enhancing transparency, and fostering competition can address existing issues and further accelerate the growth of the solar sector.​

Future Outlook

The future of the PV solar panel market appears promising, with continued advancements in technology and supportive policies. India's commitment to achieving 30 GW of rooftop solar capacity by 2027 underscores its dedication to expanding solar energy adoption. Additionally, the country's growing manufacturing capacity positions it as a potential leader in global solar exports ​

Globally, the shift towards renewable energy sources, coupled with declining costs and improved efficiency, is expected to drive further growth in the PV solar panel market. Collaborations between governments, industries, and communities will be crucial in realizing the full potential of solar energy and achieving sustainable energy goals.​

In conclusion, the PV solar panel market in 2025 reflects a dynamic and evolving landscape. India's remarkable achievements in solar installations and manufacturing, alongside global trends, highlight the transformative potential of solar energy in addressing climate change and meeting the world's growing energy demands.​