What's Happening?
The global solar power industry is expected to experience its first-ever decline in annual capacity installations in 2026, following a period of rapid growth. According to BNEF's Global PV Market Outlook, developers are projected to add 649 gigawatts
of solar power capacity in 2026, a slight decrease from the 655 gigawatts expected in 2025. This decline is attributed to policy changes in major solar markets, including China and the United States. In China, a new renewables pricing mechanism and stricter controls on solar manufacturing have impacted installations. In the U.S., the Trump Administration's policies have created uncertainties, threatening numerous solar projects.
Why It's Important?
The anticipated decline in solar power expansion highlights the impact of policy decisions on the renewable energy sector. The slowdown in major markets like China and the U.S. could affect global efforts to transition to clean energy and combat climate change. The U.S. solar industry faces challenges due to political uncertainties, potentially affecting planned projects and investments. This situation underscores the need for stable and supportive policies to sustain growth in the renewable energy sector and achieve environmental goals.
What's Next?
The solar industry may need to adapt to new market realities and policy environments in 2026. Stakeholders could focus on improving the quality and sustainability of solar projects rather than rapid expansion. The industry might also explore opportunities in emerging markets to offset the slowdown in major economies. Policymakers and industry leaders will need to collaborate to address challenges and ensure the continued growth of solar energy as a key component of global energy transition strategies.
