Global solar market trends in 2025

Data centre growth will have a role to play.

The global solar market, projected to reach 493 gigawatts (GW) in 2025 despite a minor 0.5% decrease, will be influenced by four key factors according to Wood Mackenzie.

In its report “Global solar: four things to look for in 2025,” the company said one of the trends that will shape the solar industry is the need to adapt to a new, more uncertain policy paradigm. Solar deployment will decelerate in many countries as they change policies.

“Post-election uncertainty, waning incentives, power sector reforms and a shift towards less ambitious climate agendas, will drive solar installations to stagnate at 493 GWdc after years of exponential growth,” the study said.

Another driver is the growth of data centres as they demand for firm, zero-emissions capacity. More solar projects will be paired with wind, storage and/or natural gas to meet higher energy needs. There will also be innovation in contractual terms, business models, and system architectures.

Data centre-driven competition for energy will increase solar power purchase agreements prices.

Wood Mackenzie said this year will be the year of rationalisation for solar power. After two years of low panel prices due to global overcapacity, costs will increase to compensate for the profit losses on the manufacturer side.

China will remain a major manufacturing hub, and emerging hubs in India, the US and the Middle East are expected to add at least 100 GW to the global manufacturing capacity.

This year, N-type cells will displace legacy p-type PERC as the predominant technology. Integrated Back Contact cell technology will dominate the distributed generation segment.

Furthermore, AI-powered smart trackers will enhance efficiency, and robots will increasingly be used in construction and maintenance to address rising labour costs and shortages, the report said.