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The global solar energy landscape is undergoing a significant transformation, with the world surpassing the 3-terawatt mark in solar capacity by early 2026. This milestone reflects an accelerated adoption rate of solar technology, with the first terawatt taking nearly 68 years to achieve, while subsequent terawatts were added in just two years and 19 months, respectively.
In 2025, the world installed an impressive 664 gigawatts of new solar capacity, a 12 percent increase compared to the previous year. The trend continued into 2026, where solar and battery storage collectively represented 91 percent of all new grid capacity added in the United States. Additionally, wind and solar energy together accounted for 22 percent of global electricity generation in April 2026, surpassing natural gas, which generated 20 percent.
China has emerged as a dominant force in solar energy, responsible for over half of the world’s installations. The nation has significantly reduced the cost of solar panels, making solar energy accessible even in regions that struggled to justify its use a decade ago. This shift has been particularly beneficial for countries facing urgent energy challenges, such as Pakistan, Nigeria, the Philippines, and Cuba, where there has been a notable increase in rooftop solar installations as households seek alternatives to rising fossil fuel costs. The number of countries with at least 1 gigawatt of installed solar capacity has increased from 42 in 2020 to 74.
Despite the rapid growth, challenges remain, particularly regarding infrastructure. In China, for example, the swift deployment of solar capacity has outpaced the development of transmission lines and battery storage, leading to curtailment during peak production hours when excess power cannot be absorbed by the grid. To address this, China’s latest Five-Year Plan aims for over a 50 percent increase in renewable energy consumption by 2030, focusing on optimizing existing capacity.
Battery storage is critical for maximizing solar energy potential. Countries that have seen significant solar adoption, such as Pakistan and the Philippines, are already experiencing parallel increases in battery installations. Analysts from BloombergNEF project that installed solar capacity could exceed 9 terawatts by 2036, indicating a potential for continued rapid growth in the sector. With the current trajectory, surpassing this forecast may not be surprising, reflecting the accelerating shift towards renewable energy sources worldwide.
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