According to Renewables 2025 report, global renewable energy output is set to hit record high this year, led by solar and wind energy, both of which almost universally enjoy policy support and remain affordable in most countries. But what does the global pace of growth look like and how’s that panning out for manufacturers? Take a look at the finer details in Renewables 2025, an annual report by International Energy Agency (IEA).
1 / 51. Global renewable energy growth forecast down 5%, US faces steepest cut | Despite robust growth so far, the IEA has cut global renewable energy growth forecast through 2030 by 5%. The US faces one of the steepest cuts with overall capacity growth revised down by nearly 50% across most technologies except geothermal. The downgrade stems from the early phase-out of key tax credits, new “foreign entity of concern” (FEOC) restrictions, and an executive order halting offshore wind leasing and limiting permits for solar and onshore wind projects on federal land. Wind is the hardest hit, with capacity growth expected to fall by about 60% (57 GW), while solar PV is projected to see 40% less capacity added by 2030 which is nearly 140 GW lower than previous estimates. Residential solar is likely to see a sharp fall with installations revised down by almost 70% due to the expiry of tax credits at the end of 2025. (Image: Canva)
2 / 52. Solar energy drives global renewable energy growth | 2025 is forecast to see record renewable energy growth. It is expected to beat the 22% growth in renewable electricity capacity achieved in 2024 when it reached nearly 685 GW, according to the report. This year, it is expected to add anywhere from 750 GW to 840 GW in renewable electricity capacity. Much of this will be driven by Solar Photovoltaic (Solar PV) which is expected to account for 80% of the capacity increase, followed by wind which will account for 18% of the growth. (Image: Canva)
3 / 52. Policy support, affordability to keep solar and wind leading global renewable growth through 2030 | Solar PV and wind energy will drive most of world’s renewable energy storehouse. These two energy sources are forecast to account for a whopping 96% of the nearly 890 GW of global annual renewable capacity estimated in 2030.This is because solar PV and wind are the most affordable renewable options worldwide, backed by supportive policies in over 130 countries. (Image: Canva)
4 / 54. India on track to meet 2030 target | The renewable energy outlook is positive for India which is on track to meet the 2030 target and become the second-largest growth market for renewables. This growth is driven mainly by support for rooftop solar projects, quick hydropower permitting, and higher auction volumes. Capacity is expected to rise by 2.5 times in five years. The outlook remains strong also for Europe and most emerging economies. (Image: Canva)
5 / 55. China’s solar manufacturers are hurting even as they lead global renewables push | In China, a severe supply glut has driven solar panel prices down by more than 60% since 2023, sparking intense price competition among manufacturers. This oversupply has pushed the net margins of major solar PV producers into negative, down by around 10%, with cumulative losses nearing $5 billion since early 2024. Despite leading the world in renewable installations, China’s solar industry is struggling financially. Players in China’s wind energy industry, however, are not overwhelmed by overcapacity and are able to cash in positive returns.(Image: Canva)
