The Global Solar Energy Market

The solar photovoltaic industry has undergone a remarkable transformation over the past two decades. From installing just 1 GW of capacity globally in 2004, the industry scaled to 10 GW in 2010, crossed 100 GW in 2019, and reached record-breaking levels of 554-602 GW of new installations in 2024 ^{[3] [4]}. Global cumulative capacity now exceeds 2.2 TW, with solar PV supplying more than 10% of global electricity consumption for the first time in 2024 ^[3].

The growth trajectory has exceeded earlier projections ^[1]. China alone surpassed 1 TW of cumulative capacity in 2025, with 277 GW installed in 2024 representing approximately 60% of global additions ^{[5] [9]}. The US reached 266 GW by Q3 2025 ^[7], while the EU-27 installed a record 66 GW in 2024 ^[8]. Solar PV now accounts for more than 75% of all new renewable generation capacity installed globally ^[4].

Global clean energy investment reached $2.3 trillion in 2025, up 8% from 2024 ^[2]. The IEA projects total clean energy investment at approximately $2.2 trillion annually, though this falls short of the $4.6 trillion needed annually by the early 2030s to achieve net-zero emissions ^[1]. European solar PPA prices have declined significantly, reaching €34.25/MWh in Q3 2025, down 19.4% year-over-year, reflecting both oversupply and declining technology costs ^[10].

This guide examines the market forces, regional dynamics, financing structures, and key considerations that are shaping this transformation. For energy professionals using the Tera Intelligence Platform, understanding these fundamentals provides the analytical foundation for identifying opportunities, evaluating risks, and making data-driven decisions in the global solar market.

Global energy transition investment reached a record $2.3 trillion in 2025, up 8% from 2024 ^[2]. The IEA projects total energy sector investment at $3.3 trillion in 2025, with approximately $2.2 trillion directed to clean energy (renewables, nuclear, grids, storage, low-emissions fuels, efficiency, and electrification) versus $1.1 trillion to fossil fuels ^[1]. However, achieving net-zero emissions requires approximately $4.6 trillion annually by the early 2030s, indicating a significant financing gap remains ^[1].

Investment by sector in 2025 shows electrified transport leading at $893 billion (up 21% year-over-year), followed by renewable energy at $690 billion, and grid investment at $483 billion ^[2]. Regional distribution shows Asia Pacific capturing 47% of global investment, with China at $800 billion in 2025, the European Union at $455 billion (up 18%), the United States at $378 billion (up 3.5%), and India at $68 billion (up 15%) ^[2].

Multilateral development banks (MDBs) play a crucial role in financing renewable energy projects, particularly in emerging markets where commercial financing may be limited or expensive ^{[12] [13]}. The major MDBs, ranked by total assets, include:

• ●European Investment Bank: €555.8 billion ($606.5 billion) ^[12]
• ●International Bank for Reconstruction and Development (World Bank Group): $283 billion ^[13]
• ●Asian Development Bank: $191.9 billion
• ●International Development Association (World Bank Group): $188.5 billion ^[13]
• ●Inter-American Development Bank: $129.5 billion
• ●European Bank for Reconstruction and Development: €61.9 billion ($67.7 billion)
• ●African Development Bank: 33.8 billion UA
• ●Asian Infrastructure Investment Bank: $19.6 billion
• ●Islamic Development Bank: 22 billion Islamic dinars ($18.5 billion)

MDBs have invested an estimated minimum of $1.7 trillion in renewable energy ^[13]. Solar projects are particularly attractive due to their modular nature, straightforward licensing processes, and low operational complexity.

Sovereign wealth funds (SWFs) and public pension funds (PPFs) represent another critical source of renewable energy financing, commanding approximately $32.8 trillion in combined assets under management ^[2]. SWFs alone held $12.7 trillion in 2023, with assets growing at 7% annually. In 2023, SWFs and PPFs invested $26.1 billion in clean energy, growing at an average annual rate of 16.4% between 2018-2023 ^[2].

Notable commitments include Norway's sovereign wealth fund (Norges Bank Investment Management), which committed €900 million to Copenhagen Infrastructure Partners' fifth renewable energy fund targeting offshore and onshore wind, solar, grid infrastructure, and storage across North America, Western Europe, and developed Asia-Pacific ^[14].

Private equity and infrastructure funds have emerged as major players in renewable energy investment, attracted by the long-term, stable cash flows of operational solar and wind assets. Major infrastructure investors including Brookfield, Global Infrastructure Partners, Macquarie, and BlackRock have deployed billions into renewable energy portfolios. These funds typically target operational assets with contracted revenue streams, though some have expanded into development-stage projects.

Commercial banks provide project finance for utility-scale solar developments, typically through non-recourse or limited-recourse debt structures. Leading project finance banks in renewable energy include Santander, MUFG, ING, Societe Generale, and BNP Paribas. Debt financing typically covers 60-80% of project CAPEX, with margins varying based on jurisdiction, technology risk, and offtake quality.

Long-term investors increasingly employ blended finance structures, collaborating with MDBs and development finance institutions to de-risk projects in emerging markets. These approaches help bridge the existing financing gap by combining concessional capital with commercial investment. For investors and developers tracking these opportunities, the Tera Asset Intelligence module provides visibility into financed projects across 130+ countries.

Primary energy (PE) refers to the first stage where energy enters the supply chain before any conversion or transformation process. Understanding the distinction between primary energy and electricity generation is essential for analyzing the solar market's role in the broader energy system. Primary energy production is typically classified into three categories:

• ●Fossil: Using coal, crude oil, and natural gas
• ●Nuclear: Using uranium
• ●Renewable: Using biomass, geothermal, hydropower, solar, tidal, wave, wind, and other sources

In 2017, the world produced a total of 162 PWh of primary energy. Given that there are 8,760 hours in a year, this translates to an average continuous power output of approximately 18 TW. The largest producing countries by primary energy output (in PWh) are: China (34), United States (25), Russia (17), Saudi Arabia (7), India (7), Canada (6), Indonesia (5), and Iran (4).

In 2020, the world's installed electricity production capacity was approximately 7.5 TWp, while actual production reached 27 PWh. The average electricity generator efficiency across all technologies is roughly 40%, meaning the actual electricity output at any given moment averages 3 TW. Countries with high proportions of renewable energy typically show higher capacity-to-production ratios due to the intermittent nature of solar and wind resources.

Solar crossed 1 TWp of installed capacity and over 1 PWh of electricity production in 2021, representing an average capacity factor of approximately 11%. While this may appear low compared to thermal generation, solar's scalability, declining costs, and zero fuel requirements make it increasingly competitive in the generation mix.

The growth of solar PV has exceeded virtually all earlier projections ^{[1] [3]}. Key milestones: 1 GW installed annually for the first time in 2004, 10 GW in 2010, 100 GW in 2019, 150 GW in 2021 despite COVID-19 disruptions, 407-446 GW in 2023, and a record 554-602 GW in 2024 ^{[3] [4]}. Global cumulative capacity reached 1.6 TW in 2023 and exceeded 2.2 TW by the end of 2024 ^[4]. Solar PV generation increased by a record 320 TWh (up 25%) in 2023 alone ^[1].

The 2024 installation record was driven by China, which installed approximately 357 GW (nearly 60% of global additions) ^{[5] [9]}. Other major markets included: EU-27 at 62.6 GW ^[8], USA at 47.1 GW ^[7], and India at 31.9 GW ^[4]. Solar PV represented more than 75% of all new renewable generation capacity installed globally in 2024 ^[4].

Utility-scale systems continue to dominate new installations, driven by economies of scale and declining costs ^[1]. In the US market (Q3 2025), utility-scale represented 83% of installations (9.7 GWdc), followed by residential at 9% (1,088 MWdc), commercial at 5% (554 MWdc), and community solar at 2% (267 MWdc) ^[7]. The trend toward utility-scale is expected to continue, with two-thirds of global capacity projected to be utility-scale by 2050 ^[15].

Module prices have declined dramatically due to manufacturing overcapacity, particularly in China ^[3]. This has driven European solar PPA prices down to €34.25/MWh in Q3 2025, a 19.4% decline from Q3 2024 ^[10]. US utility-scale installation costs have continued declining, though the pace varies by market segment and component availability ^[7].

China now hosts approximately 45% of global cumulative capacity, having surpassed 1 TW in mid-2025 ^{[5] [9]}. For the full year 2025, China's Photovoltaic Industry Association projects installations between 215-255 GW, representing a slowdown from 2024's record pace due to market reforms effective June 1, 2025 ^[9]. Outside China, the rest of the world added 11% year-over-year in 2024, with significant growth in India, Europe, and the United States ^[4].

The IEA notes that solar capacity is expected to more than double between 2025 and 2030 compared with the 2019-2024 period ^[1]. Under BloombergNEF's base-case scenario, average annual energy transition investment is projected to reach $2.9 trillion over the next five years ^[2]. For investors and developers, the Tera Power Grid Map provides global visibility into solar deployment patterns, grid infrastructure, and interconnection opportunities.

China achieved a historic milestone in mid-2025, becoming the first country to surpass 1 terawatt (TW) of cumulative solar PV capacity ^[5]. As of May 31, 2025, total installed capacity stood at 1.08 TW ^[5]. China now hosts approximately 45% of global solar capacity, with more utility-scale solar than any other country ^[4]. Approximately 80% of all solar panels manufactured globally are produced in China, giving the country both manufacturing dominance and the lowest deployment costs worldwide ^[3].

China installed a record 277 GW of solar capacity in 2024, representing a 45.2% increase from 2023 ^{[5] [9]}. This single year's installation exceeded twice the total US utility-scale solar capacity. At the end of 2024, cumulative capacity reached 886.67 GW ^[5]. In the first five months of 2025, China installed 197.85 GW of new capacity, driven by an installation rush ahead of market reforms that took effect June 1, 2025 ^[9].

The Chinese government has transitioned from subsidy-driven growth to market-based mechanisms ^[9]. Starting from 2022, feed-in-tariff schemes are no longer in effect, and generators sell power on the wholesale market. Market reforms effective June 1, 2025 have moderated the installation pace ^[9]. For the full year 2025, the China Photovoltaic Industry Association projects installations between 215-255 GW, representing a slowdown from 2024's record pace ^[9].

Three mature channels are available to commercial and industrial (C&I) renewable energy consumers:

1. On-site Renewable Generation Facilities: C&I customers can install behind-meter on-site renewable generation facilities such as rooftop solar panels. Project economics remain strong, particularly as prime solar generation hours typically overlap with peak time-of-use tariffs. Most on-site facilities are developed by third-party investors under energy management contracts. However, on-site facilities typically meet only around 5% of C&I customers' power demand.

2. Green Power Purchase Agreements (GPPAs): Provincial power exchanges have established GPPA trading rules across major markets. Key terms include: only non-subsidized utility-scale renewable projects are eligible to sell, only C&I customers connected to 10kV+ grid transformers can purchase, pricing formulas have floors of Base Price×80% and ceilings of Base Price×120%, and GPPAs enjoy priority in merit order dispatch.

3. Green Energy Certificates (GECs): China's GEC is a blockchain-based digital code tracking 1 MWh of electricity produced from renewable sources. GECs are categorized into Subsidy-Alternative GECs, Grid-Parity GECs, and Bundled GECs (issued with GPPAs through power exchanges).

The US reached 266.2 GW of total installed solar capacity by Q3 2025 ^[7]. In 2024, the US solar industry installed nearly 50 GWdc, a 21% increase from 2023, marking the second consecutive year of record-breaking growth ^[7]. Solar accounted for 66% of all new electricity-generating capacity added to the grid in 2024 ^[7]. Through Q3 2025, over 30 GW was installed, with solar representing 58% of all new US electricity-generating capacity ^[7].

The market shows varied performance across segments ^[7]:

• ●Utility-scale: 9.7 GWdc installed (up 26% year-over-year), representing the third-largest quarter in industry history
• ●Residential: 1,088 MWdc (down 4% year-over-year)
• ●Commercial: 554 MWdc (up 9% year-over-year)
• ●Community solar: 267 MWdc (down 21% year-over-year)

SEIA projects 246 GWdc of total solar deployments from 2025-2030 in their base case scenario ^[7].

The North American Electric Reliability Corporation (NERC) oversees eight regional reliability entities encompassing all interconnected power systems of the contiguous United States, Canada, and a portion of Baja California. The transmission grids are operated by Transmission System Operators (TSOs), which coordinate, control, and monitor electrical power system operations. TSOs can be Independent System Operators (ISOs), operating within a single state, or Regional Transmission Organizations (RTOs), covering wider areas crossing state borders.

The Investment Tax Credit (ITC) has been a major driver for utility-scale solar and wind development. Qualifying entities may claim a tax credit of up to 30% of capital costs. The Inflation Reduction Act (IRA) of 2022 significantly expanded and extended clean energy tax credits, making them transferable for the first time. This transferability has simplified tax equity structures, as companies can now sell tax credits directly rather than structuring complex partnerships.

Four principal forms of tax equity financing are used for solar projects (excluding debt):

1. Partnership Flip: On a $100m project, developers typically bring in a tax equity investor who contributes $30m for 99% ownership inside a partnership for 7 years until tax credits vest. The investor captures 99% of tax credits during vesting, targeting yields of 6-8%. After the yield is reached, the investor's economic interest drops to around 5%, and they flip out of the partnership.

2. Sale-Leaseback: The developer sells the project to a tax equity investor and leases it back, making periodic rental payments. All tax benefits transfer to the investor without complicated partnership accounting, while the developer retains operational control.

3. Inverted Lease: The tax equity investor owns the project from the start and leases it to the developer/operator. The developer makes lease payments and operates the project, while the investor captures the tax benefits. This structure is simpler than partnership flips and works well for investors who prefer direct ownership.

4. Power Prepayment: The investor prepays for a portion of the project's future electricity generation, providing upfront capital to the developer. The investor receives the tax benefits associated with this prepayment arrangement. This structure is less common but can be advantageous in certain situations.

With the IRA's transferability provisions, the need for complex structures has diminished. For more on PPA structures, see our glossary entry on Power Purchase Agreements.

The EU-27 installed a record 66 GW of solar PV capacity in 2024, continuing the rapid growth trajectory under the REPowerEU Plan ^[8]. Total installed capacity now exceeds 260 GW ^[8]. The EU Solar Energy Strategy aims to reach over 320 GW by 2025 and almost 600 GW by 2030 ^[8]. Solar PV represented nearly 80% of global renewable capacity increases in 2024 ^[4].

Germany leads the EU with approximately 82 GW of cumulative capacity and installed 17.2 GW in 2024, the highest in Europe ^[8]. The German market benefits from strong policy support and high electricity prices that make solar economics attractive for both utility-scale and distributed generation ^[8]. Germany aims to reach 215 GW by 2030, with expected annual additions of 10-15 GW ^[8]. The country has one of the most developed rooftop solar markets in Europe, supported by net metering and feed-in premium schemes.

Spain ranks second in the EU with approximately 61 GW of cumulative capacity and installed 8.7 GW in 2024 ^[8]. The Spanish market has seen significant growth in utility-scale projects, benefiting from excellent solar irradiance and relatively low land costs. Spain's PREPA auction mechanism has driven competitive PPA pricing ^[10]. Corporate PPA activity is particularly strong, with many multinational companies choosing Spain for their European renewable energy procurement.

Italy installed 6.7 GW in 2024, bringing cumulative capacity to approximately 20 GW ^[8]. The market is characterized by a mix of utility-scale ground-mount projects in the south and distributed generation in the north. Italy's agrivoltaics sector is growing, combining solar generation with agricultural production. Recent regulatory reforms have streamlined permitting, though administrative processes remain a challenge in some regions.

France installed approximately 6 GW in 2024, with a market structure dominated by state-owned entities ^[8]. EDF (83.7% state-owned) handles power production; RTE (50.1% owned by EDF) manages high-voltage transmission; and Enedis (100% owned by EDF) distributes power covering 95% of mainland France. Recent tender rounds have discovered competitive tariffs, with ground-mounted projects achieving €57-60/MWh.

The Netherlands has emerged as a significant solar market despite limited land availability, focusing on rooftop solar and innovative installations including floating solar on water bodies. The country has strong corporate PPA activity and benefits from proximity to major electricity trading hubs. Dutch solar capacity has grown rapidly, supported by SDE++ subsidy schemes.

The UK market is centered around PPAs based on the Contract for Difference (CfD) model. The Low Carbon Contracts Company (LCCC), wholly owned by the government, delivers key elements of the Electricity Market Reform Programme. Electricity suppliers fund CfD payments through the CfD Supplier Obligation Levy. The UK has seen growing corporate PPA activity outside the CfD framework.

The Irish Government targets 80% renewable electricity by 2030 under RESS 2, including 8 GWp of solar capacity and 250,000 rooftop installations ^[11]. RESS 2 awarded rights to 1.5 GW of projects at €0.097 per kWh ^[11]. EirGrid plc is the state-owned transmission operator, while ESB Networks handles distribution.

European solar PPA prices have declined significantly, reaching €34.25/MWh in Q3 2025, down 19.4% from Q3 2024 ^[10]. This decline reflects lower wholesale electricity prices, reduced solar supply chain costs, and energy oversupply in several markets ^[10]. Corporate buyers face expanded offtake opportunities, particularly in central and eastern Europe. A shift toward hybrid solar-storage projects is reshaping procurement patterns as developers combine solar with battery storage to address volatility ^[10].

In their early years, Europe and China relied on Feed-in-Tariff (FiT) schemes to stimulate solar markets, while the US pioneered renewable energy PPAs ^[6]. PPAs have become the dominant procurement mechanism globally, driven by corporate sustainability commitments, maturing wholesale electricity markets, and the phase-out of government subsidies in most developed markets ^[10].

European solar PPA prices have declined significantly from their 2022 peaks ^[10]. Q1 2024 saw European prices decline 5.9%, driven by subdued wholesale electricity prices and lower solar supply chain costs ^[10]. By Q3 2024, the P25 of competitive PPA prices dropped to €76.17/MWh, down 12.4% year-over-year ^[10]. The decline continued through 2025, with Q3 2025 prices reaching €34.25/MWh ($40.05), a 19.4% decline from Q3 2024 ^[10].

Several factors are driving PPA price declines: lower wholesale electricity prices across major markets, reduced solar module and component costs due to manufacturing overcapacity (particularly in China), energy oversupply in several European markets, and increased competition among developers seeking offtakers ^[10]. Italy, Poland, and Romania have seen particularly robust price drops due to energy oversupply ^[10].

A significant shift toward hybrid solar-storage (BESS) projects is reshaping procurement patterns. Developers increasingly combine solar with battery storage to address intermittency concerns and capture value from grid services. This trend is particularly strong in markets with high solar penetration where curtailment risk is increasing. Germany and Spain have seen developers pivot toward hybrid offerings.

Several PPA structures are used in the solar market:

• ●Physical PPA: The buyer takes physical delivery of electricity at a specific meter, with units measured in MWh delivered at the grid connection point.
• ●Sleeved PPA: A utility acts as intermediary, "sleeving" power from the generator to the corporate end-user for a fee (expressed in $/MWh).
• ●Virtual (Financial) PPA: A Contract for Difference where no physical power changes hands. The generator and buyer agree on a strike price; if market price exceeds the strike price, the generator pays the buyer, and vice versa. This provides powerful hedging against market volatility.
• ●Portfolio PPA: Aggregates multiple projects across different technologies and/or locations to provide more stable delivery profiles and reduce individual project risk.

Corporate buyers face expanded offtake opportunities with diverse renewable options across regions, particularly in central and eastern Europe and Ireland. Major technology companies, consumer goods manufacturers, and financial institutions continue to drive corporate PPA demand as part of sustainability commitments.

For detailed technical definitions, see our Electricity Market Glossary. The Tera Company Intelligence module tracks offtakers and their PPA portfolios across global markets.

The utility-scale BESS market has attracted significant interest, particularly in the US, Australia, and the UK since 2017, expanding to Italy, Ireland, India, and the Philippines from 2022 onward ^[6]. Markets most eager to deploy BESS capacity tend to be those where grid infrastructure maintenance has been neglected due to private operation or limited resources.

Interest in BESS peaked in 2022 due to the Ukraine war's effects on energy markets, generating unusually high revenues for BESS operators. The European Commission's announcement of high renewable generation and storage targets further stimulated private sector activity ^[8]. However, as of 2024, the market is rapidly becoming saturated, with potential revenue streams for operators decreasing year by year ^[6]. This saturation will force participants to select better projects and exert downward pressure on CAPEX, with lower-quality projects likely being cancelled.

CAPEX: Investment costs as of 2023 range between $300,000-$700,000 per MWh ^[6]. For example, a 50MW/75MWh system in the UK may cost $45,000,000. The CAPEX calculation: $600,000 × 75 MWh = $45,000,000.

Revenue: Average monthly returns in 2021 in the UK were approximately $150,000 per month (including wholesale, balancing, and frequency response revenue streams). The annualized return on investment was (150,000×12)/45,000,000 = 4%, which is not particularly attractive. Importantly, 2021-2022 generated unusually high income due to the energy crisis, suggesting future returns may be lower as markets stabilize.

Battery Costs: In 2023, lithium-ion utility-scale battery prices are approximately $200/kWh, with Balance of System adding roughly $100/kWh ^[6]. As of early 2024, Huawei Europe offers EUR 160,000/MWh for liquid-cooled batteries.

BESS system technical advisers include DNV, Fichtner, Everoze, and Fractal EMS. These firms provide engineering, due diligence, and operational optimization services for storage projects.

According to Bloomberg NEF, annual costs for full-scope O&M services in 2019 in Europe averaged €6,700 per MWp, with prices declining 5-10% annually ^[6]. Total annual operating expenses for a solar PV plant are estimated at €17,100 per MWp, including full-scope O&M, asset management, land lease, and insurance costs ^[6].

For comparison, in 2023 wind CAPEX is approximately: onshore at $1.5-1.6 million per MW, offshore hard-mount at $2-3 million per MW, and offshore floating expected at $2.6-4 million per MW by 2030 ^[14].

In 2021, wind OPEX ranged from approximately €80,000 per MW for best performers to €135,000 average and €250,000 for worst performers ^[6]. Average wholesale wind electricity prices ranged from €21/MWh to €200/MWh with an average around €50/MWh. In Ireland, 1 MW of installed wind capacity produced 3,340 MWh/year, translating to approximately €167,000 annual income.

A decent solar project may generate 6-10% annual gross yield on initial CAPEX ^[6]. With approximately $1 million in CAPEX per MWp and $80,000 in yearly revenue from PPA sales, carbon credits, and spot electricity, the economics remain attractive ^[14]. For LCOE calculations and comparative analysis, the Tera platform provides benchmarking tools across technologies and regions.

Depending on module efficiency and solar irradiance, 1 MWp may produce between 1,000-2,800 MWh/year ^[14]:

• ●Ireland: 900 MWh/year
• ●Center France: 1,200 MWh/year
• ●South of Spain: 1,600 MWh/year
• ●South California: 1,900 MWh/year
• ●Chile Atacama: 2,200 MWh/year

Power markets have different structures across the world, significantly impacting how solar projects are developed, financed, and operated. Understanding these structures is essential for international investors and developers.

The Chinese market is the largest globally with 8.6 PWh produced in 2021. Two major reforms in 2002 and 2015 moved from full state ownership toward a government-supervised system incorporating free market mechanisms. Transmission and distribution remain under state control, while power generation was partly opened to private and foreign investors.

Main trading types include: power energy trading (92% of traded electricity), power generation rights trading (5%), and electric ancillary services. Currently, 2 regional and 32 provincial power exchange centers have formulated their own trading rules, though unification across the board is necessary.

The US is the second-largest market with 4.3 PWh produced in 2021. The market design is based on the centralized model where producers submit detailed cost data to TSOs, which decide production levels for each plant. The distribution market tends to be efficient, though grid infrastructure is in poor condition with major blackouts in recent years. Financing and regulatory hurdles make new infrastructure deployment difficult.

Transmission networks are privately owned by utility companies, while TSOs are non-profit entities supervised by government institutions. Major TSOs include CAISO (California), NYISO (New York), ERCOT (Texas), MISO (Midcontinent), ISO-NE (New England), SPP (Southwest), and PJM (Pennsylvania-New Jersey-Maryland).

Europe is the third market with 2.7 PWh produced in 2021. The market relies on self-commitment, with producers sending less detailed cost information to TSOs. The largest share of distribution settles day-ahead, with intraday markets providing residual balancing. EU reforms over the last 20 years have privatized electricity distribution, leading to significant price increases for consumers.

The Tera Grid Infrastructure Dataset tracks TSO boundaries, interconnection points, and market structures across all major regions.

Like any asset class, solar systems that operate normally are subject to purchase and sale during their operating lifetime. While reliable data is limited due to the market's relative infancy, we can estimate that 0.5-3% of total inventory is sold annually. For systems reaching end of contractual life (20 years), the likelihood of sale or legal restructuring is significantly higher.

In a mature, stable market where annual new installations equal end-of-life systems, approximately 5% would reach contractual lifespan end each year. Refined estimates suggest 1-2% of all systems (operating plus end-of-life) are sold annually, correlating loosely with real estate markets.

Potential reasons for solar asset owners to transact include:

• ●Moving home or other personal reasons, including career changes
• ●Financial necessity
• ●Flipping solar assets for profit
• ●Bundling assets under different financial structures
• ●Selling defective solar assets

Global solar installed capacity crossed 1 TW in 2022 ^[4], with approximately 2.5 million commercial and utility-scale systems totaling 500 GW, representing over $1 trillion in commercial systems value.

For Europe specifically: 2.2 GW installed in 2005, 52 GW by 2011, and 160 GW by end of 2021 ^[8]. Approximately 80 GW (50%) are commercial or utility-scale. If 1.5% of 80 GW is sold annually, that represents 1.2 GW or $2.4 billion at $2/kWp installed.

Looking to 2050: DNV estimates commercial and utility-scale solar will represent 8 TWp globally ^[15]. With 200 kWp average system size, this equals 40 million individual plants. If 1.5% transact annually, that's 600,000 systems for approximately $84 billion at $0.7/Wp.

For newly developed projects, global annual installations of 150 GW represent approximately 375,000 commercial or utility-scale systems (200 kWp average) with combined capacity of 75 GW. At $1.5/Wp average, total value is approximately $112 billion. Capturing 10% market share would represent $11.2 billion annually.

In the EU, 25 GW installed in 2021 represents approximately 41,000 commercial systems at $18.5 billion in new inventory, plus $2.4 billion in operating asset transactions, totaling $20.9 billion addressable market.

The Tera Asset Intelligence platform tracks these transactions and provides deal-flow visibility for investors and brokers.

The following data presents the global distribution of utility-scale solar PV power plants measured by total land area (km²). This data is derived from satellite imagery analysis and provides insight into how solar deployment is distributed across different regions and economies.

Regional Concentration: The top 15 countries account for approximately 92% of global utility-scale solar capacity by area ^[4]. China alone represents over half of global deployment, reflecting both its manufacturing dominance and aggressive domestic installation targets ^[5].

Emerging Markets: Countries like Vietnam, Turkey, and Mexico have rapidly expanded their solar capacity, driven by declining costs and supportive policy frameworks ^[3]. These markets represent significant growth opportunities for developers and investors.

Land Use Efficiency: The relationship between installed capacity and land area varies by region, reflecting differences in solar irradiance, panel efficiency, and project design ^[14]. High-irradiance regions like Chile and Saudi Arabia can achieve higher energy yields per square kilometer.

The data presented in this appendix is derived from comprehensive satellite imagery analysis conducted by Professor Sun and colleagues at the Chinese Academy of Sciences ^[16]. The research employed advanced computer vision techniques to identify and measure utility-scale solar installations globally.

For professionals seeking to leverage this data for market analysis, the Tera Intelligence Platform provides regularly updated asset-level intelligence across all major solar markets, including capacity, ownership, and operational status information.

[1] International Energy Agency. (2025). World Energy Investment 2025. Paris: IEA. iea.org/reports/world-energy-investment-2025

[2] BloombergNEF. (2025). Energy Transition Investment Trends 2025. Bloomberg L.P. about.bnef.com/energy-transition-investment

[3] SolarPower Europe. (2024). Global Market Outlook for Solar Power 2024-2028. Brussels: SolarPower Europe. solarpowereurope.org

[4] IEA PVPS Task 1. (2025). Snapshot of Global PV Markets 2025. International Energy Agency Photovoltaic Power Systems Programme. iea-pvps.org/snapshot-reports

[5] China National Energy Administration. (2025). National Electricity Statistics. Beijing: NEA. nea.gov.cn

[6] BloombergNEF. (2024). Solar and Wind Operations & Maintenance 2024. Bloomberg L.P.

[7] Solar Energy Industries Association & Wood Mackenzie. (2025). U.S. Solar Market Insight Q3 2025. Washington, DC: SEIA. seia.org/research-resources

[8] SolarPower Europe. (2025). EU Market Outlook for Solar Power 2025-2029. Brussels: SolarPower Europe. solarpowereurope.org

[9] China Photovoltaic Industry Association. (2025). China PV Industry Development Roadmap 2025. Beijing: CPIA. chinapv.org.cn

[10] LevelTen Energy. (2025). PPA Price Index Q3 2025. Seattle: LevelTen Energy. leveltenenergy.com/ppa-price-index

[11] Department of the Environment, Climate and Communications, Ireland. (2024). Renewable Electricity Support Scheme (RESS). Dublin: Government of Ireland. gov.ie/ress

[12] European Investment Bank. (2024). Annual Report 2024. Luxembourg: EIB. eib.org/publications

[13] World Bank Group. (2024). Annual Report 2024. Washington, DC: World Bank. worldbank.org/annual-report

[14] International Renewable Energy Agency. (2024). Renewable Power Generation Costs in 2023. Abu Dhabi: IRENA. irena.org/publications

[15] DNV. (2024). Energy Transition Outlook 2024. Oslo: DNV. dnv.com/energy-transition-outlook

[16] Sun, J., et al. (2023). A global inventory of utility-scale solar photovoltaic power stations. Scientific Data, 11(1), 403. doi.org/10.1038/s41597-024-03372-3