On July 28, 2026, the International Energy Agency (IEA) and the Global Solar Council jointly released a latest report, announcing that as of the end of June 2026, global cumulative solar PV installed capacity officially surpassed the 2TW mark, reaching 2.01TW. This milestone marks renewable energy playing an unprecedented core role in tackling climate change and energy security.
What Does 2TW Mean?
The annual power generation from 2TW of solar PV capacity is about 2,500 TWh, equivalent to nearly 8% of global electricity demand, or enough to meet the entire electricity consumption of Europe. IEA Executive Director Fatih Birol stated, "Solar has become the fastest-growing energy technology in history, taking only 4 years to go from 1TW to 2TW." In contrast, it took nearly 20 years to go from zero to 1TW.
China Leads Far, India Becomes New Engine
The report shows that China continues to dominate the global solar PV market, with cumulative installed capacity exceeding 1.2TW as of June 2026, accounting for 60% of the global total. In the first half of 2026, China added about 120GW of new installations, up 15% year-on-year, mainly driven by the simultaneous advancement of large-scale wind-solar bases and distributed PV.
India has performed impressively, with cumulative installations surging from 70GW in 2023 to 180GW in 2026, a growth of over 150% in three years. The Indian government's Production-Linked Incentive (PLI) scheme and rooftop solar subsidies are the main drivers. The US, spurred by the Inflation Reduction Act (IRA), has cumulative installations reaching 250GW, but growth has been slower than expected due to trade barriers and labor shortages.
Europe has about 350GW of cumulative installations, with Germany, Spain and the Netherlands contributing the most. Notably, Africa and the Middle East are emerging as new hotspots, with large-scale solar projects in Saudi Arabia, UAE and South Africa accelerating. It is expected that half of global new installations before 2030 will come from non-traditional markets.
LCOE Drops to $0.02/kWh, Energy Storage Becomes Key
Solar LCOE has fallen from $0.37/kWh in 2010 to below $0.02/kWh in 2026, a drop of over 95%. In sun-rich areas like Chile's Atacama Desert and the Middle East, solar has become the cheapest power source. However, solar's intermittency relies on energy storage systems. The report specifically notes that global energy storage installations simultaneously surpassed 1TWh in 2026, with about 60% co-located with solar.
Challenges and Outlook
Despite solar's strong momentum, grid absorption capacity, land resources, critical mineral supply chains (like polysilicon, silver) and recycling issues still need to be addressed. The IEA warns that without grid upgrades keeping pace with solar deployment, serious curtailment may occur in the future. Additionally, trade friction risks persist, with US anti-dumping duties on Southeast Asian solar products continuing to simmer.
Top 10 Countries for Solar PV Installations (as of mid-2026)
- China: 1200 GW
- US: 250 GW
- India: 180 GW
- Germany: 110 GW
- Japan: 100 GW
- Spain: 60 GW
- Australia: 55 GW
- Brazil: 50 GW
- Netherlands: 45 GW
- South Korea: 40 GW
Next Five Years: Towards 4TW
The Global Solar Council predicts that global solar PV installations will reach 4TW by 2030, requiring average annual new additions of over 400GW. This demands sustained policy support, technological innovation (such as perovskite tandem cells), and cross-border grid interconnections. For investors, the solar PV supply chain—especially inverters, tracking systems, and O&M services—will usher in a golden development period.
"2TW is just the beginning; solar is reshaping the global energy landscape," Birol concluded. "The next milestone may arrive within 3 years."
