In 2023, global solar installations surged by 87% compared to the previous year, adding 447GW of new capacity, according to a new report.
SolarPower Europe’s annual Global Market Outlook for Solar Power 2024-2028 shows that the world’s total solar capacity is now nearing 1.6TW. The cumulative global installed capacity is expected to reach 2TW by the end of 2024, following the milestone of 1TW in 2022.
The report projects that by 2028, annual solar installations could reach 1TW.
However, achieving this will require unlocking financing and enhancing energy system flexibility. An estimated $12tn is needed to meet the global goal of tripling renewable energy capacity by 2030.
SolarPower Europe’s report highlights growth rates not seen since 2010 when the global solar market was just 4% of its current size. In 2023, solar power accounted for 78% of all new renewable energy installations worldwide.
This trend is supported by the IEA World Energy Investment 2024 report, which shows that investment in solar PV surpassed all other energy sources combined in 2023.
Walburga Hemetsberger, CEO of SolarPower Europe, says: “The extent of solar growth will depend on equitable access to financing and the political will to create flexible energy systems suitable for renewable energy.”
Markets
In 2023, the top 10 markets accounted for 80% of global solar installations, predominantly from advanced economies.
The number of advanced solar markets, defined as those installing at least 1GW annually, increased to 31 countries, up from 28 in 2022. However, emerging economies are still underrepresented.
Michael Schmela, Director of Market Intelligence at SolarPower Europe, adds: “By 2028, we could be installing more than 1TW of solar annually. It’s crucial to set realistic targets and address common challenges such as permitting, regulatory frameworks for profitable business models, and system flexibility through extensive battery storage capacities.
“The sector is ready to provide a decarbonised energy system, and policymakers need to recognize the climate and energy security solutions at their doorstep.”
China remains a key driver of global solar growth, although it is a dynamic and unpredictable market. In 2023, China installed 253GW, which is 57% of the global capacity and equivalent to the global installations in 2022.
The massive scale-up in manufacturing capacity has led to a significant drop in solar panel prices, about 50% last year, and increased consolidation within China’s solar manufacturing industry.
Sonia Dunlop, CEO of the Global Solar Council, comments, “China continues to set the pace for the global solar transition. To maintain the 1.5°C climate target, it’s essential for the industry to stay united.
“No single country or company can achieve this goal alone. We must collaborate to develop new markets, build fair and resilient supply chains, and secure substantial financing to ensure solar leads the energy transition.”
