The International Energy Agency's Photovoltaic Power Systems Program (IEA-PVPS) has released its latest report, providing a comprehensive overview of the global photovoltaic (PV) market for the year 2023. According to the report, global photovoltaic capacity experienced significant growth, reaching 1.6 terawatts (TW) in 2023, up from 1.2 TW in the previous year.
The report indicates that up to 446 gigawatts (GW) of new PV systems were commissioned in 2023, with China leading the way in driving rapid growth. Additionally, an estimated 150 GW of PV modules were in inventories worldwide.
Analysts note that despite previous challenges such as material and transport costs, module prices saw a substantial decline in an oversupplied market. This drop in prices helped maintain the competitiveness of PV, particularly as electricity prices decreased following historical peaks in 2022.
However, the report also highlights the challenges posed by the oversupply of PV modules, underscoring the difficulty in aligning production with demand in a dynamic market environment. Uneven political support in certain markets and strained local manufacturing due to competitive pricing are among the issues identified.
In terms of market segments, both rooftop and utility-scale installations saw growth in 2023. Approximately 45% of new capacity was installed on rooftops, driven by factors such as decreasing installation costs and higher consumption costs. The report notes the increasing role of prosumers as market drivers, alongside a shift away from net metering as PV costs decline.
Furthermore, the report points out the increasing penetration rates of PV in various countries, with some achieving theoretical rates above 10%. Spain, the Netherlands, Chile, and Greece are highlighted as leaders in this metric.
As PV penetration rates continue to rise, the report emphasizes the need for transmission and distribution system operators to anticipate and actively manage PV integration. Policy support for batteries is also advancing, particularly in countries facing grid congestion or high electricity costs.
In the broader context of the energy transition, PV is recognized as playing a major role, representing over 75% of all new renewable electricity technologies in 2023. This is attributed to consistent cost reduction, technical performance, and faster permitting procedures compared to other renewable energy sources.
