New installation capacity fell by nearly a quarter from 22.4GW in 2011 to 17GW in 2012.
This is a “turning point in the global PV market”, according to the European Photovoltaic Industry Association’s market outlook.
Future expansion is more likely to come from China, the US, Japan and India than Europe, it said, adding: “How much more the global market can grow in 2013 remains a question.”