In the first six months of 2025, a record breaking 380 gigawatts of new solar capacity was added. This is 64 percent more compared to the same period in 2024. The pace is fast and now its signaling EPC firms to work faster and be efficient and they can do that through using smarter digital tools.
It is not just a number, it's growth and this is reshaping how solar projects are designed and built across the world. Let’s break down what is driving this surge and how EPCs can position themselves to thrive in the middle of it.
So, what is fueling this extraordinary leap in solar installations?
First, solar hardware is more affordable. Panel and inverter prices have dropped significantly thanks to improved supply chain stability and intense competition among suppliers. What used to cost thousands can now be achieved for a fraction, this opening the door to markets that once found solar financially out of reach.
Second, policy and tariff reforms have created a global rush to build. Many developers are racing to complete projects before new tariff rules or subsidy adjustments take effect, particularly in Asia. These policy shifts have accelerated project timelines, contributing to this surge capacity that might have been installed later in the decade.
Third, the corporate demand for clean energy has exploded. Companies are committing to 100 percent renewable goals, locking in power purchase agreements (PPAs) and driving new demand for solar at both the utility and commercial scale.
And finally, EPCs themselves are scaling up and adopting advanced software and learning to deliver more projects simultaneously. The result is a self reinforcing loop: more capacity, faster installations and a more mature ecosystem ready to handle the surge.
Of course, more demand also means more competition and tighter profit margins. But for EPCs it is better to adapt quickly because the opportunities are enormous.
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This solar surge is a double edged sword for EPCs. On one hand, project volumes are soaring. On the other hand, the pressure to deliver on time and within budget has been even more greater.
The opportunity is clear that they need a growing pipeline of work, new markets opening up and more investors backing renewable infrastructure. EPCs can expand and strengthen client relationships through reliable delivery.
But the challenges are very real. Project timelines are getting shorter so the margins are being squeezed. Supply chains are stretched thin and teams are forced to juggle multiple sites while maintaining top tier quality and compliance.
Every stage of the EPC workflow feels the ripple, from design and proposal creation to procurement and construction.
This is where digital transformation steps in. The use of automated design and proposal platforms is no longer just a nice to have; it is the foundation of scalable growth. There are tools that allow EPCs to create detailed system layouts, estimate costs accurately and produce proposals in minutes helping teams keep pace with the industry’s speed.
The bottom line is EPCs that automate now will handle the coming years of demand without burning out their teams or breaking their margins.
As global solar capacity accelerates, EPCs need to think ahead. Scaling successfully requires a strategic blend of technology, operational discipline, and risk control.
1. Invest in scalable software.
Adopting modern proposal, design, and automation platforms allows EPCs to manage higher project volumes without adding proportional manpower. This is how digital-first firms are outpacing competitors.
2. Optimize supply chain and procurement.
With global material demand surging, managing inventory, logistics, and vendor relationships proactively can prevent costly project delays.
3. Standardize and modularize.
Creating repeatable project templates, standard designs, and workflows saves time and reduces errors.
4. Protect quality and margins.
Rapid scaling should never compromise build quality. Implement strong quality assurance processes to protect brand reputation and client trust.
5. Track the right metrics.
Time per proposal, cost per kilowatt, and revision rates matter. These metrics give visibility into performance and help EPCs make smarter, data backed decisions.
How do you know if your EPC business is ready for this kind of volume? Start with clear, measurable metrics that reveal how efficiently your operations are running.
Some key KPIs to track include:
Use these metrics to benchmark performance against previous quarters. If your numbers are not improving, it is a sign that your workflows may not be scaling as effectively as the market demands.
Continuously auditing performance help EPCs stay agile and catch inefficiencies early before they start affecting project delivery and profitability.
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Let’s imagine a mid sized EPC firm that entered 2025 managing around 25 projects annually. As mid year approaches the inquiries tripled, driven by falling equipment prices and increased investor interest.
Before the surge, proposals were created manually, each taking roughly two days from design to client presentation. Designs often went through multiple revisions, stretching timelines and straining the sales team.
To keep up, the company integrated automated solar design and proposal software into its workflow. Within weeks, proposal creation time dropped from two days to just a few hours. Teams could generate accurate layouts, simulate energy outputs, and present polished proposals faster than competitors.
This shift freed engineers to focus on project optimization rather than repetitive tasks. The firm scaled to handle 60 plus projects annually while maintaining its margins and even improving client satisfaction.
It is a simple story but one that is playing out across the solar sector. Digital readiness has become the defining advantage for EPCs competing in a world of high demand and rapid change.
The record breaking growth does not guarantee a solar landscape without any challenges.
The most immediate concern is supply chain bottlenecks because when demand spikes, shortages in panels, inverters or batteries can delay entire projects. Shipping delays or regional manufacturing delays can also impact timelines.
There is also the speed versus quality dilemma. As EPCs race to complete more installations, maintaining high construction standards becomes a test of process control.
Margin pressure is another risk because with more competition in every market even small inefficiencies can cut the profits.
Finally, policy shifts and regulatory changes can create uncertainty, especially in fast moving markets like China or the United States where incentive structures can change within months.
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To navigate this period of intense growth, EPCs need technology partners that simplify scale. Arka360 brings together solar design, proposal automation, and lead management in a single platform, helping EPCs move faster and smarter.
Arka360 offers intuitive tools for accurate layout generation, financial modeling, and proposal creation. EPCs can handle more projects without sacrificing quality or accuracy. The platform also supports better collaboration across teams, ensuring that every stage from design to proposal runs smoothly.
The solar industry is entering a new era of high volume growth and digital transformation is not optional anymore. It is the only way forward.
Will the surge continue through 2025 and 2026?
Most projections suggest yes. With policy support and ongoing corporate demand, the growth momentum is expected to carry well into 2026.
Does this mean smaller EPCs will not survive?
Not necessarily. Smaller EPCs that embrace digital tools can compete effectively by offering agility and speed.
How can I maintain margins with higher project volume?
Efficiency is the key. Automating repetitive processes and using standardized templates helps protect profit margins.
What digital tools are critical right now?
Proposal, design, and project tracking tools are essential for managing high project loads efficiently.
Are supply chain risks still high?
While some bottlenecks remain, improved logistics and diversified sourcing are easing the worst pressures seen in previous years.
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The 64 percent surge in global solar installations is more than a milestone, it is a turning point. EPCs that act now to digitalize their workflows and scale operations will survive the surge and lead it.
The solar industry has entered its volume era and the EPCs who thrive will be the ones who combine smart strategy with smart software.
With platforms like Arka360 offering all in one solar design and proposal software, EPCs have everything they need to capture this moment and turn the 2025 solar boom into long term success.
