The global energy sector reached a major milestone in 2024 as total installed solar photovoltaic (PV) capacity climbed to 1,865 gigawatts (GW), marking a sharp rise from 710 GW at the end of 2020. The figures show how rapidly solar power has expanded in just four years. In 2024 alone, around 451 GW of new solar PV capacity was added worldwide, accounting for more than three-quarters of all new renewable energy installations and confirming solar as the fastest-growing clean energy source, according to Solarquarter.
A key driver behind this growth has been the steady decline in costs. The global weighted-average levelized cost of electricity (LCOE) for utility-scale solar PV fell from $0.417 per kilowatt-hour in 2010 to $0.043 per kilowatt-hour in 2024. By the end of 2024, solar power was 41 percent cheaper than the most competitive fossil fuel options. In many countries, it has become the lowest-cost source of new electricity generation, supported by lower equipment prices, improved technology, and large-scale manufacturing.
Advances in manufacturing have further strengthened the sector. Modern module technologies such as TOPCon and monocrystalline modules are becoming widely used, offering higher efficiency and improved performance. Industry estimates suggest solar module conversion efficiency could reach 26 percent by 2030. At the same time, improved production processes are expected to reduce electricity consumption in manufacturing polysilicon, wafers, and ingots by about 6 percent by 2030. Silver usage in solar cells may also decline by 25 percent, helping to further reduce costs.
India has emerged as a key player in this global expansion. In 2024, the country added 24.5 GW of new solar capacity, making it the second-largest market after China in annual additions. By early 2025, India’s total installed solar capacity crossed 100 GW and reached 132.85 GW by late 2025, marking a 41 percent year-on-year increase and underlining strong growth momentum.
The government has introduced several measures to boost domestic manufacturing and reduce reliance on imports. The Approved List of Models and Manufacturers (ALMM) has helped expand manufacturing capacity to 144 GW per year. Domestic solar module production rose 99 percent year-on-year, reflecting progress toward building a stronger supply chain. Major industrial groups are investing in fully integrated facilities covering the entire process, from polysilicon production to final module assembly.
Policy support has also contributed to growth. The Goods and Services Tax (GST) on solar energy devices was reduced from 12 percent to 5 percent. The PM Surya Ghar: Muft Bijli Yojana aims to install rooftop solar systems in ten million households, expanding access to clean energy across the country.
Despite these gains, challenges remain. Geopolitical tensions and trade barriers could cause short-term price fluctuations and supply chain disruptions. However, with 91 percent of newly installed utility-scale renewable capacity now cheaper than fossil fuels, solar energy has firmly established itself as a mainstream power source. As countries work toward tripling renewable energy capacity by 2030, solar PV is expected to remain central to the global clean energy transition, with India playing an important role in shaping the sector’s future.
