Global Solar Capacity Reaches 1.6 TW

The world has reached total solar capacity of 1.6 TW after annual installations almost doubled in 2023 to 447 GW, a new report by SolarPower Europe says.

The solar added last year was 87% up on 2022, when 239 GW were installed. Solar also accounted for the bulk of the total renewable energy installed in 2023.

“How far solar can go will be determined by equitable global access to financing, and the political will to deliver flexible energy systems fit for the renewable reality,” said SolarPower Europe CEO Walburga Hemetsberger.

Global solar capacity is expected to hit 2 TW this year and by 2028 the world could be installing more than 1 TW annually. "It’s now about setting targets in line with reality, and addressing the familiar challenges – permitting, regulations enabling profitable business models, and the new frontier – system flexibility, through vast amounts of battery storage capacities," said Michael Schmela, director of market intelligence at SolarPower Europe.

The medium scenario in SolarPower Europe’s annual Global Market Outlook for Solar Power 2024-2028 projects cumulative global solar capacity of 2.2 TW in 2024, 2.8 TW in 2025, 3.5 TW in 2026, 4.2 TW in 2027 and 5.1 TW in 2028. The forecast is significantly above last year’s medium scenario.

The organisation, however, highlighted that the solar surge is not evenly distributed, with 80% of installations concentrated in the top 10 markets. China continues to set the pace of global solar growth, installing 253 GW in 2023.

On the manufacturing front, a huge expansion in capacity caused solar panel prices to drop by about 50% last year, leading to a growing consolidation of the solar manufacturing industry in the country.