The global energy sector marked a major turning point in 2024 as total installed solar photovoltaic (PV) capacity reached an impressive 1,865 gigawatts (GW). This is a sharp rise from 710 GW at the end of 2020, showing how quickly solar power has grown in just four years. In 2024 alone, around 451 GW of new solar PV capacity was added worldwide. This accounted for more than three-quarters of all new renewable energy installations during the year, confirming solar power as the fastest-growing renewable energy technology.

One of the main reasons behind this strong growth is the steady fall in costs. The global weighted-average levelized cost of electricity (LCOE) for utility-scale solar PV has dropped significantly from $0.417 per kilowatt-hour in 2010 to only $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, solar PV has become the lowest-cost source of new electricity generation. Lower equipment prices, better technology, and large-scale production have helped reduce costs across the entire supply chain.

Manufacturing improvements have also played a key role. Advanced module technologies such as TOPCon and monocrystalline modules are becoming common in the market. These technologies offer higher efficiency and better performance. Industry projections suggest that solar module conversion efficiency could reach 26 percent by 2030. At the same time, improvements in production processes are expected to reduce electricity use in making polysilicon, wafers, and ingots by about 6 percent by 2030. Silver use in solar cells may also fall by 25 percent, further lowering manufacturing costs.

India has emerged as an important player in this global expansion. In 2024, India added 24.5 GW of new solar capacity, making it the second-largest market after China in terms of annual additions. By early 2025, India’s total installed solar capacity crossed the 100 GW mark and reached 132.85 GW by late 2025. This represented a 41 percent year-on-year increase, highlighting the country’s strong growth momentum.

The Indian government has taken several steps to strengthen domestic manufacturing and reduce dependence on imports. The Approved List of Models and Manufacturers (ALMM) has helped increase manufacturing capacity to 144 GW per year. Domestic solar module production in India grew by 99 percent year-on-year, showing clear progress toward building a self-reliant supply chain. Large industrial groups are now investing in fully integrated manufacturing facilities that cover the entire process, from polysilicon production to final module assembly.

Policy support has also played a major role. The government reduced the Goods and Services Tax (GST) on solar energy devices from 12 percent to 5 percent. Schemes such as PM Surya Ghar: Muft Bijli Yojana aim to install rooftop solar systems in ten million households, expanding access to clean energy across the country.

Despite this progress, challenges remain. Geopolitical tensions and trade barriers could lead to short-term price fluctuations and supply chain risks. However, with 91 percent of newly installed utility-scale renewable capacity now cheaper than fossil fuels, solar energy has clearly become a mainstream power source. As the world works toward tripling renewable energy capacity by 2030, solar PV is expected to remain at the center of the global clean energy transition, with India playing a key role in shaping this future.