Solar Heat Worldwide report released

The annual report is published by the IEA Solar Heating and Cooling (IEA SHC) Programme. Fields covered in the report include residential water heating, district heating, process heat, solar cooling, and drying.

The report finds that, while the residential market has struggled somewhat, larger industrial solar heat applications have been thriving.

“The 17.8GW of new solar heat capacity installed last year once again demonstrates the broad appeal of this technology – serving building owners, agricultural businesses, hotels, and industrial users alike,” says IEA SHC Chair Luci Mesquita.

“Its versatility and adaptability underscore its vital role in advancing climate neutrality.”

Positive solar industrial heat outlook

The past year was bright for solar industrial heat. At least 106 solar industrial heat (SHIP) plants with a capacity of 120MW have been commissioned worldwide, an increase of 28% compared to the previous year.

The outlook remains strong, with an additional 125MW_th of SHIP capacity under construction by the end of 2024. Notably, this includes three multi-megawatt installations being built for copper mines in Chile.

Solar district heating growth

According to the report, 346 towns and cities around the world now benefit from solar energy integrated into their district heating networks. In 2024 alone, 10 new systems with a total capacity of 74MW were commissioned.

The report found the global solar district heating market is steadily expanding into new regions. Among last year’s highlights was the commissioning of one of the world’s largest solar district heating plants – a 34MW system in the Netherlands.

Momentum is also building in Southeast Europe. Two major projects are advancing in the Balkans: in Pristina, Kosovo, the pre-qualification tender for a 44MW collector field with seasonal storage closed on April 11, 2025. Meanwhile, in Novi Sad, Serbia, plans are underway for a 27MW solar collector field, also paired with seasonal thermal energy storage.

“Despite a challenging market environment in the residential sector, we are seeing dynamic growth in large-scale applications such as industrial process heat and solar district heating,” Christoph Brunner, CEO of AEE INTEC and one of the lead authors of the report.

“These trends underline solar thermal’s vital contribution to a decarbonised future, especially in sectors where electrification alone is hard to realise.”

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