India, US, and Middle East to add 100 GW Solar Capacity by 2025

Wood Mackenzie predicts that India, the United States, and the Middle East will add 100 GW of solar capacity by 2025, while China will remain the sector's dominant player. According to its most recent research, module prices will also rise this year, following two years of low solar panel prices due to global overcapacity.

This will compensate for the significant profit losses suffered by manufacturers, it said.

"Emerging hubs in India, the US and the Middle East are expected to add at least 100 GW to the global solar manufacturing capacity," according to Wood Mackenzie.

According to the report, 75 percent (1.2 TW (terawatts) of the global operational capacity for major module components will remain in China, making it the world's center for solar manufacturing.

Wood Mackenzie stated that the key to rationalizing the industry will be Chinese manufacturers' cooperation, aided by the Chinese government.

Heterojunction (HJT) and TOPCon, two cutting-edge solar technologies, will overtake p-type PERC (Passivated Emitter and Rear Contact) technology as the most common cell technologies for utility-scale applications in 2025.

Higher power densities and improved module efficiencies are the outcomes of this change.

Since many nations held elections in 2024 and some of the new administrations entering office, the global solar industry will also need to adjust to and a more conservative climate agenda is presented by some of the incoming administrations.

The development of solar projects will be discouraged or stopped in many areas due to the uncertainty surrounding renewable energy policy and the future of incentives.

Local content requirements and protectionist policies add expenses and difficulties, especially in areas without a developed solar manufacturing sector.

"For example, developers and manufacturers in India struggle with higher costs of domestic modules and upstream components, and the policies affect project timelines and economic feasibility, hindering the growth seen in 2024," said Wood Mackenzie.

As of January 20, India's total non-fossil fuel-based capacity reached 217.62 gigawatts (GW), according to the Ministry of New and Renewable Energy.