The solar industry has seen impressive growth in the past year, with the global cumulative capacity of installed and commissioned PV increasing by over 25%. This surge is attributed to post-covid price hikes and geopolitical strife, according to the International Energy Agency’s (IEA) Snapshot of Global PV Markets 2023.
By the end of 2022, the cumulative capacity reached 1.2TW, with China continuing to dominate as the country with the largest installed capacity. The country added 106GW of capacity last year, accounting for 44% of global additions, bringing its cumulative installed capacity to 414.5GW. This trend has been consistent over the past few years, with China adding 54.9GW in 2021 and 48.2GW in 2020.
The European Union (EU) installed 38.7GW of solar capacity last year, increasing from the 27GW registered in 2021 and 20GW in 2020. Spain, Germany, Poland, and the Netherlands were the leading countries in the EU for solar capacity, making it the second-largest market in terms of cumulative capacity, with 209.3GW.
The US, on the other hand, installed only 18.6GW last year, down from 27GW in 2021. The decline was due to trade issues and grid connection backlogs, with 1TW of solar projects waiting for interconnection access.
India’s annual installed capacity reached 18.1GW, but its cumulative capacity totaled only 79.1GW, lagging behind Japan’s 84.9GW despite the East Asian country only adding 6.5GW of capacity in 2022.
The report also examined electricity production from PV per country, with Spain topping the list with 19% penetration rate, followed by Greece (17.5%) and Chile (17%). Nine countries had penetration rates over 10% last year, up from seven in 2021.
The study found that the rooftop and utility-scale segments both grew in 2022, with 48% of new capacity on rooftops. This trend has been growing since 2018, thanks to new countries opening their markets and decreasing costs, making it more accessible for residential and commercial investors.
IRENA’s Renewable Capacity Statistics 2023 also showed that solar energy accounted for about 65% of global renewable energy capacity growth in 2022. A total of 192GW of solar capacity was installed in 2022, up 22% year-on-year. Renewable generation capacity increased by 295GW (+9.6%) last year, meaning solar capacity accounted for 65.1% of the global renewable power capacity growth.
Overall, the solar industry has shown significant growth and potential, with prices becoming more competitive and accessibility increasing. However, there are still challenges to be addressed, such as trade issues, grid connection backlogs, and increasing solar capacity in emerging markets.
