New Delhi: By the close of 2024, the capacity for global solar manufacturing is projected to exceed 1,100 GW, which is more than twice the anticipated demand for PV panels, said a report on the World Solar Market released by the International Solar Alliance (ISA) on Tuesday. As solar manufacturing exceeds demand, it will make solar power more affordable, the report added. “Solar cell prices have reached USD 0.037/watt, while advanced mono TOPCon and mono PERC module prices have fallen below USD 0.10/watt, indicating a trend towards greater affordability in solar technology,” it said.
The ISA released three reports as part of the World Solar Report series at its 7th General Assembly in New Delhi. “The newly launched 4 reports namely World Solar Market Report, World Investment Report, World Technology Report, and Green Hydrogen Readiness Assessment for African Countries each highlight a crucial area in the global shift towards sustainable energy,” said a statement.
In just two decades, global solar capacity has exploded from 1.22 GW in 2000 to an astounding 1,418.97 GW in 2023—a staggering 40 percent annual growth rate, said the report. In 2023 alone, 345.83 GW of solar power was added, accounting for three-quarters of all new renewable capacity worldwide. Solar generation has surged similarly, rocketing from 1.03 TWh in 2000 to 1,628.27 TWh in 2023.
However, global energy investments climbed steadily at 5 percent between 2018 and 2024. “Global energy investments are set to soar from USD 2.4 trillion in 2018 to a projected USD 3.1 trillion in 2024—a steady climb at nearly 5 percent annually. Global clean energy investment now nearly doubles that of fossil fuels, set to leap from USD 1.2 trillion in 2018 to USD 2 trillion by 2024—marking a bold pivot toward renewables,” said the report. Investments in solar represented ~ 59 percent (USD 393 billion) of all RE investments (USD 673 billion), driven largely by a drop in solar panel costs, said the report. Region-wise, APAC is at the forefront of solar investments pouring USD 223 billion into solar in 2023. EMEA has experienced modest solar investment growth, with USD 91 billion in 2023, followed by AMER region with solar investments of USD 78 billion.
The World Technology Report highlights the rapid progress being made in the field of solar technology. “Record-Breaking Solar PV Panel Efficiency: Solar PV monocrystalline modules have hit a new high with record-breaking 24.9 percent efficiency—a major leap in maximizing solar energy potential. Multijunction perovskite cells are set to disrupt the solar panel industry, promising higher efficiency, lower production costs, and seamless integration with diverse surfaces—leaving traditional silicon panels in the dust,” said the report.
Solar Manufacturing Now Uses 88 percent Less Silicon per Watt Peak than in 2004- The manufacturing process has undergone significant improvements, resulting in a drastic reduction in silicon usage- from consuming 16 gm/Wp in 2004 to 2 gm/Wp in 2023. This 88 percent decrease in silicon consumption not only reflects the strides made in optimising material efficiency but also underscores the potential for further cost reductions and environmental benefits, the report said.
The global weighted average LCOE for utility-scale Solar PV dropped by 90 percent, falling from USD 0.460/kWh in 2010 to USD 0.044/kWh in 2023. At country level, the drop ranges from 76-93 percent over the same period, it added.
Direct electrification cannot solve the decarbonisation requirements of industries that still rely on fossil fuels like coal, oil, or natural gas as feedstocks to produce commodities like steel, fertilisers, refined gasoline, and diesel fuel. Hence, green hydrogen, produced through the electrolysis of water powered by renewable electricity sources like wind, solar, and geothermal, emerges as a suitable replacement for fossil fuel-based energy sources, said another report Readiness Assessment of Green Hydrogen in African Countries.
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