Solar EPC Market Size (2025-2030)

The Solar EPC Market was valued at USD 250 Billion in 2024 and is projected to reach a market size of USD 348.65 Billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 5.7%.

The Solar EPC (Engineering, Procurement, and Construction) market plays a central role in the deployment of solar power systems across residential, commercial, and utility-scale projects. It includes the design, sourcing, and installation of solar infrastructure. EPC contractors handle end-to-end project execution, ensuring efficiency and compliance with technical standards. The market is largely driven by rising investments in solar photovoltaic systems. Photovoltaic (PV) technology is the most commonly deployed solar solution under this model. Utility-scale solar projects represent the largest share of Solar EPC activity. Major players in the market offer integrated services, often including operations and maintenance. Asia-Pacific is the leading regional hub for Solar EPC activities, with China being a major contributor. The Engineering segment dominates among service types, particularly in complex and large-scale installations. Applications vary, but utility-scale and commercial sectors hold a notable presence.

Key Market Insights:

In 2024, Asia-Pacific accounted for over 45% of the global Solar EPC market share. This dominance is largely due to aggressive solar infrastructure development in China and India.

The Utility-Scale segment contributed approximately 52% of the market revenue in 2024. Large-scale installations continue to be prioritized for grid stability and bulk power generation.

PV systems represented nearly 88% of the total Solar EPC installations in 2024. This reflects their lower costs, modular design, and growing adoption in both urban and rural regions.

Among service types, the Engineering segment held a 41% revenue share in 2024. Precision design and regulatory compliance remain essential for project success.

China alone contributed over 33% of the global Solar EPC revenues in 2024. Its aggressive solar expansion strategy and policy support have made it a global epicenter for solar EPC activities.

Market Drivers:

Growing Global Focus on Renewable Energy is Accelerating Solar EPC Adoption

As governments and industries shift away from fossil fuels, solar energy has emerged as a central pillar in clean energy strategies. International climate agreements and national renewable targets have prompted a surge in solar project development. This growing demand directly fuels the need for EPC contractors to design, procure, and construct these projects efficiently. Solar EPC firms provide turnkey solutions that reduce complexity for developers and investors. Their ability to handle large-scale installations has become essential in meeting ambitious energy transition goals. This trend is especially strong in Asia-Pacific, Europe, and parts of the Middle East.

 Declining Solar Panel Costs are Making EPC Projects More Feasible

The cost of solar panels has dropped by more than 80% over the last decade, making solar power more economically attractive than ever before. As hardware prices fall, the relative value of EPC services increases in driving project efficiency and scale. Lower upfront investment encourages broader adoption, especially among commercial and utility-scale developers. EPC companies benefit from this momentum, as they are often responsible for sourcing and installing cost-effective components. The affordability of solar components also expands the market to developing nations and remote regions. This cost decline continues to shape project pipelines and bidding competitiveness in the EPC space.

Market Restraints and Challenges:

One of the major challenges in the Solar EPC market is navigating complex regulatory frameworks and securing necessary permits, especially for large-scale projects. Delays in environmental clearances, grid connectivity approvals, and power purchase agreements can significantly stall timelines and inflate costs. Land acquisition remains another critical hurdle, particularly in densely populated or agriculturally sensitive regions. In countries like India and parts of Southeast Asia, acquiring large tracts of land often leads to legal disputes or community resistance. These delays affect the overall profitability and planning of EPC contractors. Moreover, the lack of standardized regulations across regions further complicates project implementation for global EPC players.

Market Opportunities:

Emerging economies in Africa, Southeast Asia, and Latin America are rapidly increasing their investments in solar power infrastructure. These regions often face unreliable grid access and high dependency on imported fuels, making solar energy an attractive alternative. As governments in these markets introduce favorable policies, subsidies, and international collaborations, demand for EPC services is expected to surge. EPC contractors can leverage this momentum to establish local partnerships and offer scalable, cost-effective solutions. Additionally, the push for rural electrification and off-grid solar systems opens up niche markets for specialized EPC providers. These opportunities are particularly strong where solar resources are abundant but infrastructure is still developing.

SOLAR EPC MARKET REPORT COVERAGE:

Solar EPC Market Segmentation:

Solar EPC Market Segmentation Type of Solar Technology

• Photovoltaic (PV)
• Concentrated Solar Power (CSP)

Photovoltaic (PV) technology was the largest segment in the Solar EPC market in 2024, accounting for nearly 88% of total installations. Its widespread adoption is driven by decreasing module costs, simple system architecture, and high scalability across project sizes. PV systems are widely used in both grid-connected and off-grid applications, making them a versatile choice for EPC contractors. Their dominance is expected to continue due to ease of installation and favorable government incentives across multiple regions.

Concentrated Solar Power (CSP) is the fastest growing segment, especially in sun-rich regions such as the Middle East and North Africa. Unlike PV systems, CSP can integrate thermal energy storage, enabling electricity generation even after sunset. This feature is attracting investments in utility-scale projects where stable, dispatchable power is essential. Although CSP currently holds a smaller market share, its growth is accelerating due to advancements in technology and energy storage capabilities.

Solar EPC Market Segmentation by End-User/Application

• Residential
• Commercial & Industrial
• Utility-Scale

The Utility-Scale segment was the largest contributor to the Solar EPC market in 2024, capturing approximately 52% of the total market share. These large-scale projects are often backed by government tenders or corporate power purchase agreements, making them financially viable and scalable. EPC contractors play a vital role in managing the complexity of these installations, including land management, grid integration, and large-capacity component sourcing. Utility-scale solar continues to dominate due to its ability to deliver high output at a lower cost per watt.

The Commercial & Industrial (C&I) segment is the fastest growing, fueled by rising electricity costs and corporate sustainability goals. Businesses are increasingly investing in rooftop or on-site solar to reduce operational expenses and carbon footprints. EPC firms benefit from this trend by offering tailored solutions that meet specific regulatory, spatial, and energy requirements. Growth in this segment is especially strong in regions with solar subsidies and favorable net metering policies.

Solar EPC Market Segmentation by Service Type

• Engineering
• Procurement
• Construction

The Engineering segment held the largest share of the Solar EPC market in 2024, accounting for approximately 41% of total service revenue. Detailed project design, feasibility studies, and regulatory planning are critical for the success of any solar installation. EPC companies invest heavily in technical expertise to ensure system optimization, safety compliance, and efficient land use. As solar projects become more complex, the demand for advanced engineering solutions continues to rise.

The Construction segment is the fastest growing in the Solar EPC service chain, driven by the surge in on-ground project executions worldwide. As more solar projects move from planning to implementation, the need for skilled labor, site management, and timely infrastructure delivery is accelerating. EPC contractors are scaling up their construction capabilities to meet tight deadlines and ensure operational efficiency. This growth is particularly notable in regions with active government tenders and ambitious solar targets.

Solar EPC Market Segmentation: Regional Analysis:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

In 2024, Asia-Pacific stood out as the largest market in the global Solar EPC landscape, accounting for over 45% of total revenue. This dominance is primarily driven by large-scale solar deployments in China, which continues to lead in solar capacity addition. India and Australia are also accelerating project execution through favorable policies, tenders, and renewable energy targets. The region's growing urbanization and demand for clean electricity have positioned it at the forefront of EPC activity.

The Middle East & Africa region is experiencing the fastest growth in the Solar EPC market, supported by strong solar irradiance and policy-driven expansion. Countries like Saudi Arabia, the UAE, and South Africa are rolling out massive utility-scale solar initiatives. EPC contractors are benefiting from clear government roadmaps, land availability, and increasing foreign investments. Additionally, the push toward energy diversification and sustainability goals is accelerating solar infrastructure in this region at an unprecedented pace.

COVID-19 Impact Analysis:

The COVID-19 pandemic had a mixed impact on the Solar EPC market, disrupting global supply chains and delaying project timelines in 2020 and early 2021. Lockdowns and restrictions led to labor shortages, halted construction activities, and delayed permitting processes. The procurement of key components such as solar panels, inverters, and mounting systems faced logistical bottlenecks, particularly from China. Many utility-scale and commercial projects were postponed or restructured due to financial uncertainties. However, the crisis also prompted several governments to introduce renewable energy stimulus packages, reigniting project pipelines by late 2021. Post-pandemic recovery has accelerated investments in solar infrastructure, positioning the EPC market for renewed long-term growth.

Latest Trends and Developments:

The Solar EPC market is witnessing a wave of innovation and structural transformation driven by several emerging trends. EPC firms are increasingly adopting AI, IoT, and digital twin technologies to optimize engineering precision, streamline procurement, and predict system performance in real-time. Hybrid solar-plus-storage systems are gaining traction, especially in utility-scale projects, enabling reliable power supply even after sunset. Floating solar farms are also expanding in regions with limited land, while decentralized installations such as rooftop and community solar continue to attract residential and commercial users. Technological advancements in photovoltaic modules—like bifacial and high-efficiency N-type cells—are rapidly improving system output, with some next-gen modules exploring perovskite-HJT tandem combinations. On the financing side, long-term power purchase agreements (PPAs) and creative funding models are helping offset rising interest rates, though recent policy shifts and subsidy rollbacks in certain regions have introduced new market uncertainties.

Key Players in the Market:

1. Moss
2. Primoris Renewable Energy
3. SOLV Energy
4. Quanta Services
5. Black & Veatch
6. Rayzon Green Pvt. Ltd.
7. Tata Power Solar
8. Adani Solar
9. Sterling and Wilson Solar
10. Waaree Energies

Market News:

• In early 2025, Larsen & Toubro (L&T) was announced as a preferred EPC contractor by Masdar for the world’s first 24/7 solar PV and battery storage gigascale project in Abu Dhabi. This marks a strategic expansion for L&T into global utility-scale solar-plus-storage infrastructure.
• In March 2025, Waaree Renewable Technologies Ltd. secured a Rs 232 crore (≈ USD 28 million) EPC contract to deliver a 170 MW AC / 255 MW DC ground-mounted solar project, including full Operation & Maintenance services. The installation is expected to reduce CO₂ emissions by approximately 225,000 metric tons annually.