Solar Energy Trends To Watch For In 2025

Last year was a record-shattering year for solar energy industry growth, with 32.4 gigawatts of new electricity-generating capacity in 2023. According to the Solar Energy Industries Association, solar power accounted for 53% of all new electricity-generating capacity added to the US grid in 2023, making it a significant contributor to the country's energy mix. The residential segment also saw substantial growth. In Q2 2023, the US solar market installed 5.6 GW of capacity, a 20% increase from Q2 2022 and a promising sign for the industry's continued growth.

But what is the solar energy landscape for 2025? Read on to get the inside scoop on solar energy trends for 2025.

Solar Trend 1 - Advancements in Solar PV Technology

Advancements in photovoltaic (PV) technology continue to lead the evolution of the solar industry, making solar panels more efficient and less expensive. We expect this recent solar energy trend to continue in 2025 and beyond, resulting in solar panels with greater energy output per unit area of installation. One way manufacturers are improving solar panel performance is by incorporating new, more efficient materials into panel construction, such as perovskite solar cells, which have the potential to reach 30% efficiency levels.

Scientists and researchers are also exploring new ways to harvest solar energy, with the development of solar cells that are built into PV glass windows and other building components. These solar cells, called building-integrated photovoltaics (BIPVs), can capture energy from sunlight while maintaining the functionality of traditional construction materials. BIPVs are an exciting innovation and have the potential to significantly increase the adoption of solar technology in buildings, which account for the majority of energy use worldwide.

Also, the rise of thin film solar technology will also make solar panels more affordable. Thin-film solar panels, made from a variety of materials such as copper indium gallium selenide (CIGS) or cadmium telluride (CdTe), are less expensive and less energy-intensive to produce than traditional silicon panels.

They are also more flexible and lighter, making them easier to install and ideal for use in niche applications where traditional panels are not practical. As advancements in production techniques and materials continue, thin-film panels have the potential to become a dominant technology in the solar PV industry.

Solar Trend 2 - Demand for Large Solar Projects With Energy Storage

As the global shift towards renewable energy intensifies, utility-scale solar energy projects are anticipated to play a pivotal role in meeting the growing energy demand from data centers. These PV projects involve the installation of expansive solar arrays capable of generating large amounts of electricity. Due to their size and scope, they are typically deployed in open areas such as deserts or agricultural lands.

Also, integrating utility-scale batteries in these projects is another leading solar trend. Utility-scale batteries can store excess solar energy generated during daylight hours and release it when demand is high or during periods of limited solar availability, such as at night or on cloudy days. This allows for a more stable and reliable energy supply, reducing the need for traditional fossil fuel backup systems. The adoption of utility-scale battery storage systems is expected to support the growth of renewable energy by enhancing grid stability and enabling a higher penetration of solar energy into the electricity mix.

The increasing popularity of large-scale solar projects with utility-scale battery storage represents a considerable solar energy trend. It aligns with the ongoing efforts to transition towards a more sustainable and resilient energy infrastructure, significantly reducing greenhouse gas emissions and contributing to the decarbonization of the power sector. Likewise, as the costs of solar and battery technologies continue to decline, the economics of such projects become increasingly favorable, creating a positive feedback loop that furthers this solar trend.

Solar Trend 3 - Rise of Floating Solar Farms

Floating solar farms, known as floatovoltaics, are poised to gain some traction in coastal and offshore locations in the near future. This is driven by the need to find alternative spaces for solar projects due to the limited availability of land. As the demand for renewable energy continues to grow, the lack of suitable land for traditional ground-mounted solar installations poses a challenge in many densely populated areas. This has led to the exploration of floating solar systems as a viable solution, utilizing bodies of water such as lakes, reservoirs, and even coastal and offshore areas.

Coastal and offshore locations offer several advantages for floating solar farms. These areas often have abundant sunlight with minimal shading, maximizing the solar energy generation potential. The proximity to coastlines and offshore environments allows efficient electricity transmission to coastal communities and grid infrastructure. Also, floating solar farms provide an innovative way to repurpose underutilized space, generating renewable energy in previously unsuitable areas. This opens up new opportunities for expanding solar capacity in regions where land availability is limited or costly.

However, installing floating PV farms presents unique solar engineering and logistical challenges. Specialized floating platforms and anchoring mechanisms must be designed and installed to ensure the stability and durability of solar panels in water bodies.

Likewise, it's important to consider the impact of floating solar panels on ecosystems and wildlife, as well as potential factors such as corrosion and extreme weather conditions. Yet, advancements in floating solar technology and the success of early pilot projects indicate that these challenges can be overcome, making floating solar farms an increasingly attractive option for clean energy production, particularly in coastal and offshore locations.

Solar Trend 4 - Solar Power Becomes Increasingly Cost-Competitive In Developing Countries

Countries across the world are pivoting towards renewable energy for power generation, with solar energy emerging as a versatile and viable solution. Developing countries, in particular, are well-positioned to take advantage of this trend, given the abundant sunshine in many regions and the potential to leapfrog traditional grid infrastructure development.

One primary factor driving the growing cost-competitiveness of solar energy in developing countries is the rapidly declining cost of solar technology. The cost of solar panels has been falling steadily over the past decade due to factors such as increased competition, technological advancements, and streamlined manufacturing processes. This has resulted in more affordable solar equipment, making solar energy more accessible to individuals and businesses, even in economically disadvantaged areas.

In addition, the decentralized nature of solar energy systems can offer significant benefits in developing countries. Solar energy installations, which comprise solar panels and inverters, can be installed on a small scale to meet local electricity needs, eliminating the need for expensive transmission and distribution infrastructure. This can provide reliable and clean power to remote and off-grid communities, improving energy access and security. Also, the modular nature of solar energy systems allows for easy expansion and updating, making it a flexible and adaptable solution for a rapidly evolving energy landscape.

Solar Trend 5 - Blockchain for Peer-To-Peer Solar Energy Trading

Blockchain technology is set to revolutionize how we trade and distribute solar energy by enabling peer-to-peer (P2P) solar energy trading markets. The concept involves the use of blockchain platforms to connect consumers who generate excess solar energy with those who need additional power. This technology allows for direct, secure, and transparent transactions, eliminating the need for intermediaries such as utility companies.

In a P2P solar energy trading market, individuals or businesses with solar panel installations can generate more electricity than they consume. Instead of feeding this excess energy back into the grid or storing it, blockchain technology enables them to sell it directly to nearby consumers. Smart contracts, powered by blockchain, facilitate the seamless and automatic execution of transactions, ensuring that energy suppliers are compensated fairly for their contribution.

The adoption of blockchain technology in P2P solar energy trading markets is an important recent solar energy trend because it offers several benefits. First, it promotes decentralization and empowers individuals to become active participants in the energy market, contributing to renewable energy goals. Second, it enables more efficient utilization of locally generated solar energy, reducing transmission loss and optimizing energy consumption at the local level. Ultimately, this technology has the potential to create a more sustainable and resilient energy system by fostering local energy independence and reducing reliance on centralized power grids.

Solar Trend 6 - Smart Inverters Revolutionize Solar Energy Storage

Smart solar inverters are set to revolutionize energy storage for solar panel owners by improving the efficiency of electricity flow regulation. Traditional inverters convert the direct current (DC) output of solar panels into alternating current (AC) for use in homes or businesses. However, smart inverters go beyond this basic function by incorporating advanced features that enable better control and management of the flow of electricity.

One key advantage of smart inverters is their ability to regulate the flow of electricity more efficiently. They can dynamically adjust the voltage and frequency of the AC output to match real-time demand, ensuring optimal energy transfer and utilization. By closely monitoring energy generation and consumption patterns, smart inverters can adjust the electricity flow to match immediate needs, thereby reducing waste and maximizing solar energy use.

Therefore, this recent solar energy trend means that smart inverters facilitate more intelligent energy storage for solar panel owners. They can integrate with energy storage systems, such as batteries, to store excess energy generated during peak production periods for later use when demand is higher or the sun is not shining. This enables solar panel owners to have greater control over their energy usage, allowing them to optimize self-consumption and minimize reliance on the grid. Thus, they enhance energy independence and potentially reduce electricity costs.

Solar Trend 7 - AI Technology Shapes The Solar Energy Industry

The adoption of artificial intelligence (AI) technologies in solar panel manufacturing, installation, and maintenance is a growing solar energy trend that holds significant promise for enhancing the renewable energy sector. AI enhances solar panel performance by analyzing vast datasets and optimizing operations. Through machine learning algorithms, AI can identify patterns and make real-time adjustments, maximizing energy production and improving overall system performance.

In addition, AI plays a crucial role in managing solar energy systems. It can monitor and control various system components, such as tracking the sun's position, managing power distribution, and ensuring efficient operation. This ability to adapt to changing environmental conditions leads to optimized performance and improved energy efficiency, marking a noteworthy solar energy trend.

Also, integrating AI in solar panel maintenance can help reduce costs and streamline maintenance schedules. AI algorithms can analyze data from solar panels to accurately predict when maintenance or repairs are needed. By identifying potential issues before they escalate, maintenance can be scheduled proactively, minimizing downtime and lowering costs associated with emergency repairs. This reduces maintenance costs and enhances the reliability of solar energy systems.

Solar Energy Trend 8 - Batteries Become More Cost-Effective

Solar-plus-storage systems are becoming increasingly attractive for homeowners and businesses seeking to reduce their reliance on the traditional power grid. By combining solar panels with battery storage, users can generate energy and store excess electricity for later use. This recent solar energy trend has led to a rapid decrease in the costs of solar-plus-storage systems, making them more competitive with traditional grid-connected options. As a result, more homeowners and businesses are adopting this technology, empowering them to take control of their energy production and consumption.

Several factors are driving this solar energy trend in battery storage systems. First, the prices of solar panels and batteries have steadily declined due to technological advancements and increased market competition. Also, government incentives and tax credits have made solar-plus-storage systems more affordable for residential and commercial users. Finally, advancements in energy management systems have simplified the integration of solar-plus-storage setups with the traditional power grid, allowing users to sell excess electricity back to the grid and earn solar credits on their utility bills

2025 Likely A Strong Year For The Solar Industry

The outlook for solar energy installations in the U.S. and globally is largely positive as we move into 2025. However, the Trump administration or Congress could make changes to the federal solar tax credit, which could impact the industry. For example, tapering down the ITC could impact demand for new solar installations.

While implementing NEM 3.0 will continue to pose challenges for the California solar market, the broader national and international solar landscape remains robust. Recent energy trends indicate that rising electricity costs and advancements in solar technology make solar power more appealing and cost-effective than traditional energy sources.

In addition, interest rates have dropped slightly, which could ease some of the solar financing challenges associated with solar installations. This could encourage more homeowners and businesses to invest in solar energy systems, making it a more attractive option in the current economic climate. The continued decline in the cost of solar panels and related technologies is also expected to enhance accessibility for a wider range of consumers.

Solar engineering and permitting challenges can hinder solar installations. GreenLancer is the only online marketplace for contractors to select service partners to fill gaps within their engineering and design processes. Create an account to shop for permit-ready solar plan sets, engineering reviews, and PV field services.

Sign Up for Free