Solar Energy Rise: Global Solar Market Poised for Rapid Expansion by 2027

The Global Solar Power Market Forecast 2023-2027 provides a comprehensive overview of the solar power sector’s recent performance and future prospects. 2022 saw extraordinary growth in solar power, with 239 GW of new capacity installed globally, up 45% from the previous year. This explosive growth has pushed total global solar capacity to exceed the terawatt (TW) scale, representing an industry milestone.

Several factors contributed to this growth, including rising energy prices, stabilizing supply chains and the post-pandemic recovery. These elements, combined with the inherent advantages of solar energy – its versatility, cost-effectiveness and ability to be quickly deployed – have made it a key element of the global energy mix. Despite challenges such as supply chain disruptions and inflation, solar energy remains cheaper than new fossil fuel sources and nuclear power.

The report highlights that decision-makers increasingly recognize solar energy as a key tool for achieving local energy security. The energy crisis caused by dependence on fossil fuels, especially visible in the context of the European Union’s dependence on Russian gas, has highlighted the strategic importance of solar energy. For example, the EU Solar Strategy of May 2022 highlighted solar energy as a key element in reducing this dependence.

In 2022, China led the global solar market with almost 100 GW of new installations, reflecting an annual growth rate of 72%. The United States remained the second largest market despite a slight decline, while India showed a strong rebound with 17.4 GW of new capacity. Brazil and Spain also made significant progress, with Brazil doubling its installation rate to 10.9 GW and Spain becoming Europe’s largest market with 8.4 GW. These changes increased the Asia-Pacific region’s share of the global market to 60%, while Europe and America accounted for 19% and 17% respectively.

Forecasts for 2023 and subsequent years are optimistic. The average scenario included in the report envisages the installation of 341 GW of new photovoltaic capacity worldwide in 2023, maintaining the high growth rate observed in 2022. In better market conditions, this figure could exceed 400 GW. By 2027, the global market could reach 617 GW of new installations, increasing total operational capacity to over 3.5 TW.

This expansion is expected to bring a record number of countries to GW-scale markets. In 2022, 26 countries installed at least 1 GW of new solar PV capacity, and this number is projected to increase to 32 in 2023, 39 in 2024 and at least 53 by 2025. Such growth will be crucial to meet growing global demand for solar energy. clean energy and reducing dependence on non-renewable sources.

The report also focuses on specific regional markets and emerging trends. This issue focuses attention on Southeast Asia, highlighting the region’s significant solar energy potential. With support from the Global Solar Council (GSC), the report provides an in-depth analysis of photovoltaics (PV) deployment in Southeast Asia, forecasting a 13% growth in the regional market to 3.8 GW in 2023.

Another area of ​​interest is corporate power purchase agreements (PPAs) in emerging markets. These agreements are becoming increasingly important because they provide a mechanism for financing and developing new solar projects, especially in regions with less mature energy markets. The report highlights the progress and challenges faced in these markets, highlighting the need for a supportive policy framework to facilitate further growth.

Overall, the global solar market outlook for 2023-2027 paints a promising picture for the solar industry. Thanks to continued progress and supportive policies, solar energy is well positioned to play a leading role in the global transition to sustainable energy. The report highlights the industry’s resilience and growth potential, highlighting the key role solar energy plays in addressing global energy and climate challenges.

More details can be found in the full report here.

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