(Brussels Belgium) - Last year, photovoltaic systems with an output of around 239 gigawatts were installed worldwide, an increase of 45 percent compared to 2021. 118 gigawatts (GW) were created in the rooftop systems segment, an increase of 49 percent. This means that solar output has reached a new installation record for the tenth year in a row. This is the result of the now published study “Global Market Outlook 2023-2027” by the European solar industry association Solar Power Europe, which according to its own information represents around 300 members.
The total solar capacity installed worldwide was almost 2022 terawatts at the end of 1,2. This would generate 1.612 terawatt hours of electricity - around 57 percent of the European Union's total electricity needs.
China dominates the photovoltaic world
In 26 countries, the newly installed capacity exceeded one gigawatt in 2022: In the top three places are China with an annual growth rate of 72 percent and around 100 GW of newly installed solar power systems, the USA (21,9 GW; down six percent) and India (17,4th .17,4 GW; plus 10,9 percent), followed by Brazil (100 GW; plus 8,4 percent). Spain became the largest European market with an expansion of 5 GW and is in fifth place. Germany is in sixth place in this world ranking with a newly installed capacity of 7,4 GW (plus three percent), according to the report.
In total, the newly installed renewable energy capacity in 2022 totaled 362 gigawatts. Photovoltaics makes up the main share at 66 percent. © Solar Power Europe
The list shows that photovoltaics (PV) is apparently not only profitable in southern regions: after all, more than one gigawatt of power was also newly installed in Denmark (rank 16) and Great Britain (rank 21). SPE predicts that the number of gigawatt markets will rise to 2023 in 32, 39 next year and at least 2025 in 53.
In terms of cumulative solar output relative to population, Australia remains the leader with almost 1,2 kilowatts per inhabitant. The Netherlands also exceeded the mark of one kilowatt of installed capacity per inhabitant (1,029 watts). Germany is in third place with 815 watts. According to SPE estimates, the global average is around 144 watts per capita.
PV at the forefront of renewables
In total, the newly installed renewable energy capacity totaled 362 gigawatts. Photovoltaics makes up the majority at 66 percent, followed by wind (78 GW; 22 percent), hydropower (30 GW; eight percent) and biomass (eight gigawatts; two percent) and others with another eight gigawatts.
Despite the solar boom, solar energy currently only covers 4,5 percent of the world's electricity needs, while over 70 percent comes from non-renewable sources. © Solar Power Europe
Of the now cumulative solar output of 1,177 GW, China has the largest share at 34 percent, followed by the USA (twelve percent) and India and Japan (seven percent each). Germany has a share of six percent.
Further boom in solar energy expected
“The positive market developments in the first months of 2023 promise another solar boom year,” estimates the lobby. Between 341 and 402 gigawatts are expected to come online by the end of the year - this corresponds to growth of 43 percent. By 2027 it could be up to 800 gigawatts per year, eventually reaching one terawatt per year at the end of the decade. If the installation boom continues, the total installed capacity worldwide could rise to over two terawatts by the beginning of 2025 and to 2027 terawatts by the end of 3,5.
However, despite increasing momentum in system installation, solar power still only accounts for a fraction of global electricity generation at 4,5 percent. All other renewable energy sources cumulatively cover around 25,4 percent of global electricity generation. Non-renewable sources continue to dominate the market with a share of 70,1 percent.
Other international surveys come to slightly different figures: in April, for example, the International Energy Agency (IEA) concluded that the PV contribution would statistically amount to 2022 percent of electricity demand worldwide in 6,2. According to this, the leader Spain achieved a market penetration of more than 19 percent last year, Greece and Chile around 17 percent each, and in the Netherlands and Australia it was 15,9 percent and 15,7 percent. According to IEA statistics, Germany achieved 12,4 percent, Europe averaged 8,7 percent.
Challenge of network expansion
Solar Power Europe still sees some challenges in the development of the solar market: limited network capacities and a lack of flexibility or storage options in the national electricity systems are critical. According to the report, of the 26 major solar countries, 20 report grid congestion “as a major obstacle to the development of solar energy.”
Electricity generation costs for newly built generation plants. © Solar Power Europe
Furthermore, in 2022, “significant disruptions in the supply chain”, ongoing COVID-19 effects and inflationary pressures triggered by the war in Ukraine led to the increase in PV levelized cost of electricity (LCOE) for the first time in a decade: from $36 in 2021 to $60 per megawatt hour.
However, this is not an obstacle to competitiveness: “Photovoltaics are still significantly cheaper than new fossil fuels and nuclear energy, product prices have already started to fall in the last few months and are likely to return to pre-crisis levels soon,” says Solar Power Europe. According to this, the production of one megawatt hour of electricity costs $70 in a newly built gas and steam power plant, $117 using coal and even $180 in a new nuclear power plant. According to calculations, wind energy is the cheapest source at $50 per megawatt hour.
The Solar Power Europe study “Global Market Outlook for Solar Power 2023-2027” is available free of charge in English as a PDF (148 pages).
Photos
Solar power generation is booming worldwide. © International Energy Agency
