What is the extent of the global share of solar energy? | Explained Premium

2024 World Solar Report highlights solar energy growth, efficiency, cost reductions, job creation, and global market trends.

The story so far: On November 5, the World Solar Report 2024 by the International Solar Alliance (ISA) was released. From 1.22 GW in 2000, the world’s solar capacity has surged to 1,419 GW in 2023, charting a CAGR of about 36%. Today, solar capacity represents three-quarters of all renewable capacity additions worldwide.

Quantum dot solar cells have achieved a record-breaking efficiency of 18.1%, offering a promising approach to enhance solar energy capture and power atmospheric water harvesting technologies. Researchers are creating self-healing solar panels to extend the lifespan and reduce the maintenance of existing solar cell technologies. Solar-powered phyto-mining uses solar energy to power the extraction of valuable metals from soil-using plants, offering a sustainable alternative to traditional mining practices. Solar paver blocks integrated with building infrastructure and BIPV (Building Integrated PV), like transparent solar panels, allow light transmission and visibility. The development of these alternative technologies will reduce reliance on critical materials like lithium and rare earth elements. The solar sector is also prioritising recycling panels and implementing circular economy practices to minimise environmental impact.

The 2024 World Solar Report shows that the average auction prices for utility-scale solar photovoltaic (PV) projects have consistently decreased across all regions. Utility-scale solar PV costs averaged $40/MWh in 2024. India topped the global charts in solar PV capacity granted through auctions, securing a notable auction price of $34/MWh. Investment in solar PV technology within the power sector is expected to surpass the $500 billion mark by 2024, outstripping the combined investment in all other generation forms.

As of 2023, China dominates solar PV as 43% (609 GW) of the cumulative capacity of solar panels installed globally is from China. The U.S. contributes 10% (137.73 GW). Japan, Germany, and India each captured a 5-6% share. Emerging solar markets like Brazil, Australia, Italy, and Spain each contributed about 2%. Solar PV manufacturing has nearly doubled in capacity for wafers, cells, and modules in 2023. China maintained the highest share in component manufacturing in 2023, with 97% in wafers, 89% in cells, and 83% in module installation capacity.

Employment in the solar PV sector rose to 7.1 million jobs in 2023, up from 4.9 million in 2022 worldwide, indicating a significant increase from the previous year and underscoring the sector’s role in job creation and economic development. Solar-powered irrigation systems are transforming agriculture. The global solar pump market is expected to grow at a CAGR of 5.8% from 2021 to 2027, driven by declining costs of solar PV technology, cost competitiveness of solar-powered pumps, especially when compared to diesel-powered water pumping, and increased awareness among farmers. Beyond crop farming, agrivoltaics systems are being used in livestock management, with solar panels installed in pastures to provide shade for animals while simultaneously generating electricity. One of the key factors driving the adoption of solar systems has been the introduction of pay-as-you-go business models, allowing users to pay for their systems in small, regular instalments.

Technological advancements have made solar energy more affordable, while new applications are further driving adoption. We must promote technology and finance transfer, especially to the least developed and small island developing countries, to ensure no one is left behind.

Ajay Mathur is DG of the ISA, and Saba Kalam is Programme Specialist at the ISA.