Global solar to hit 8 TWdc by 2034 as balcony solar goes mainstream

India to overtake US as key solar market.

The solar market’s fundamentals and demand will remain strong in 2026 as the global economy continues to push for renewable energy, an outlook from Wood Mackenzie said.

It is also projected to be one of the primary new sources of electricity generation supplying this load growth over the next five years, the outlook added.

Data centres, manufacturing facilities, and transport electrification are driving growth in the United States (US) and Asia Pacific.

Cumulative solar capacity installed worldwide is also set to nearly triple, from almost 3 terawatts direct current (TWdc) today to nearly 8 TWdc by 2034.

Despite global challenges in the market, China remains the world’s largest market, as structural changes to energy market policy led to notably fewer solar installations in the second half of 2025.

India is set to displace the US as the world’s second-largest market, as new local content requirements and challenges with finalising offtake arrangements pose headwinds, the report said.

Masdar and the Emirates Water and Electricity Company also broke ground on a 5.2-gigawatt direct current solar photovoltaic facility paired with 19 gigawatt-hours of battery storage in Abu Dhabi in October 2025.

It is the world’s first gigawatt-scale renewable project, engineered to deliver 1 gigawatt of continuous baseload power.

Balcony solar—also known as plug-in solar—is an inverter that can be plugged directly into a wall outlet and supply a home with some electricity without the need for an electrician, utility interconnection approval, or permits.

Having grown mostly in Germany, the electricity rules and regulations enabling its adoption appear to have remained relatively contained to that market, according to the report.