Spain, for its part, has become one of the most prominent players on the global stage. The country installed 11,3 GW in 2025 and has a total of 59 GW, placing it seventh in the world. However, this massive deployment also poses significant challenges, such as managing panel waste at the end of their useful life, an issue that the International Renewable Energy Agency (IRENA) has highlighted with compelling data. The circular economy and recycling represent an economic and employment opportunity that cannot be ignored.
A global milestone: more than 3 TW of photovoltaic capacity
The IEA PVPS report reveals that it took the industry more than 40 years to surpass the first terawatt , but in less than three years it has added two more. This accelerated pace is due to the drop in module prices, which in China have plummeted by more than 60% since 2023, although this has resulted in accumulated losses of almost $5.000 billion for manufacturers. The paradox is that the bottleneck is no longer the cost of the panels, but rather the slow permitting process, grid congestion, and generation cuts during peak sunlight hours.
In this scenario, India has overtaken the United States for third place in annual installations, with 55,9 GW, while China continues to dominate with between 350 and 415 GW. The European Union remains second with 65,7 GW. Spain, with its 11,3 GW, occupies seventh position and stands out for its strong commitment to centralized generation: only 1,1 GW corresponded to distributed self-consumption , a segment that has slowed due to stable electricity prices. However, 11 regional governments launched tax incentive programs to promote self-consumption during 2025.
The challenge of the circular economy: recycling and opportunities
The International Renewable Energy Agency (IRENA) has quantified a problem that will grow in the coming decades. In its 1,5°C scenario, by 2050 there will be more than 25 million tons of solar panels at the end of their useful life , equivalent to about 400 GW of capacity. Collecting and treating this waste will require at least 120.000 heavy-duty truck trips and more than 150 medium-sized treatment plants operating at full capacity over the next decade.
But it's not all bad news. Current recycling allows for the recovery of more than 90% of materials, including copper, aluminum, silver, silicon, and glass, and with technological advances, this could reach almost 100%. IRENA estimates that the market value of recovered materials could reach $6.000 billion by 2040 and exceed $20.000 billion by 2050. Furthermore, the solar industry already generated more than 7,2 million jobs in 2024, 43% of total renewable energy employment, and the circular economy could create even more jobs in waste collection and reuse.
Public self-consumption: examples in Spain
While the residential market is slowing, public administrations are taking decisive steps. Castilla-La Mancha has increased its photovoltaic production in healthcare facilities more than a hundredfold, with installations in hospitals, health centers, and administrative buildings. This measure, part of its energy transition strategy, aims to reduce the electricity bill and carbon footprint of the regional healthcare system. Healthcare facilities are large electricity consumers, so utilizing their rooftops to generate clean energy is a logical solution that is already yielding economic and environmental results.
In Barcelona, ​​the City Council has approved a permit to install solar panels on a dozen municipal buildings, including community centers, libraries, and preschools. Annual savings of €62.600 and a generation capacity of 518.000 kWh per year are expected. This initiative aims to normalize shared self-consumption and promote energy communities, with a 20-year permit renewable for another four years. The public sector is thus positioning itself as a key driver of the energy transition , with projects that serve as examples for other administrations.
Regulatory challenges and the future of the sector
The 12th Solar Forum, organized by the Spanish Photovoltaic Union (UNEF), highlighted the need to leverage the competitive advantage of photovoltaics in Spain. UNEF's Director General, José Donoso, pointed out that there are more than 70 GW of electricity demand between granted and planned grid connection points, and that the sector must prepare to meet this demand and bolster the country's reindustrialization. The 2025 grid switch-off was a central topic, with criticism leveled at the lack of information and the existing regulations that prevented renewables from participating in voltage control. The update to operating procedure PO 7.4, approved in June, will allow renewables to contribute to system stability, something that Red Eléctrica (the Spanish electricity grid operator) and the sector have been demanding for years.
The forum also addressed the manufacturing of photovoltaic components in Europe under the Net Zero Industry Act (NZIA), as well as the financing of new projects and their integration into local communities. Energy storage was another key focus of the meeting , with sessions dedicated to its role in industrial self-consumption and the need to develop batteries to manage intermittent power supply. Former Prime Minister and former Secretary of State for Energy, Alberto Nadal, acknowledged that photovoltaics is the cheapest way to produce energy and should be the backbone of the electricity system, although he cautioned about the need to increase demand, establish interconnections, and develop energy storage infrastructure.
In short, solar photovoltaic energy is experiencing a period of unstoppable expansion, but also of transformation. The focus is no longer on how much is installed, but on how to integrate all that energy into the grid, how to manage panel waste, and how to guarantee system stability. Spain, with 59 GW of installed capacity and a projected penetration rate exceeding 30% by 2026 , faces these challenges from a leading position that it must consolidate through investment in storage, regulatory updates, and support for distributed self-consumption. The circular economy, recycling, and technological innovation will be key for photovoltaics to remain central to the energy transition, delivering economic, environmental, and social benefits for the entire country.
