Solar panels worldwide on track to record: 270 GW by 2023
A record 270 gigawatt peak of solar panels will be installed worldwide by 2023, and this growing trend looks set to continue.
This is predicted by market research firm Wood Mackenzie. Michelle Davis, Head of Global Solar at Wood Mackenzie, stresses that the solar industry has experienced significant growth in recent years. This year seems to be no exception. There are both positive and challenging aspects to the outlook for solar al over the world.
Success is fuelled by several factors such as ambitious renewable energy targets, electrification, coal plant phase-out, energy security and favourable policies. As a result, the installation rate of solar panels is expected to continue to grow to 330 gigawatt peak by 2032.
China
China, which is currently the market leader in solar panel production, will see its market share decline in the coming years to 30% by 2032. America will gain greater market share, although China will still remain the market leader for several years. Wood Mackenzie anticipates that China will shift its export focus from complete solar panels to solar cells and wafers.
US
In the US, the solar market is supported by policies such as the Inflation Reduction Act (IRA), which has led to significant additions to the development pipeline. This has resulted in an annual growth rate of 39%. Europe is also showing strong growth, with the UK leading the way in the installation of solar panels on rooftops of homes, while Romania is seen as an emerging player with expected installed capacity of 6.5 gigawatt peak by the end of 2027.
Solar crucial during major power outage
A European study conducted by Sweco shows that the share of solar power is increasing in many countries due to the energy transition, falling prices of solar panels, more subsidies and better regulations. Germany is the leader in installed solar power, while the Netherlands has the highest per capita power. Northern European countries, especially Norway, lag behind in solar adoption.
This study also highlights that solar panels can play a crucial role in mitigating the effects of major power outages in the future. Currently, rooftop solar panels do not produce electricity during power outages, but special inverters allow essential appliances to continue working during daytime power outages. There are also hybrid inverters that can combine with batteries to ensure power supply even at night. This can help the European power systems in becoming more resilient and robust.
This research highlights that promoting hybrid inverters in combination with home batteries can make the Netherlands’ energy system more resilient at relatively low cost. With the phasing out of the net-metering scheme, this opportunity is becoming increasingly important.
The study points out that solar energy can also be used to protect critical infrastructure, for instance by placing solar power plants close to these facilities.
In short, the global growth of solar panels and the development of technologies such as hybrid inverters and home batteries are contributing to a more resilient and sustainable energy system as countries worldwide strive towards greater reliance on renewable energy sources.
Sources: Solar Magazine and Sweco group