The International Energy Agency identifies solar photovoltaic technology as the single largest driver of renewable electricity growth this decade. In its Electricity 2026 outlook, the agency projects that global renewable generation will expand by roughly 1,000 terawatt hours annually through the late 2020s, with solar PV contributing well over half of that increase, adding more than 600 terawatt hours each year. This makes solar the dominant source of incremental power supply worldwide.
By 2025, the rapid expansion of renewables is expected to bring their global electricity output close to coal’s level. Renewables are projected to overtake coal during the second half of the decade rather than at a specific mid-2026 milestone. The trend highlights a structural shift in which rising electricity demand is increasingly met by clean energy instead of new coal capacity.
Even as solar cements its role as the backbone of new generation, the industry is entering a more complex phase shaped by pricing adjustments, supply chain dynamics, and policy changes in major manufacturing markets. Analysts note that shifts in Chinese export incentives could place upward pressure on module prices, although the magnitude and timing of any global impact remain uncertain.
The central operational challenge for the sector is no longer deployment speed alone but grid integration. The IEA estimates that well over 1,500 gigawatts of renewable projects worldwide are waiting in grid connection queues, reflecting constraints in transmission capacity, permitting timelines, and system flexibility.
To address these bottlenecks, power systems are increasingly pairing solar with battery storage to manage variability and maintain reliability. Hybrid solar and storage projects are becoming standard in leading markets such as California, Texas, and the United Kingdom, showing how flexibility solutions are evolving alongside record renewable generation.
