Solar Energy Surge: Global Solar Power Market Set For Rapid Expansion Through 2027

The Global Market Outlook for Solar Power 2023-2027 provides a comprehensive overview of the solar energy sector’s recent performance and future prospects. Solar energy saw remarkable growth in 2022, with 239 GW of new capacity installed globally, marking a 45% increase compared to the previous year. This surge pushed total global solar capacity past the terawatt (TW) scale, a significant milestone for the industry.

Several factors contributed to this growth, including rising energy prices, stabilization of supply chains, and recovery from the pandemic. These elements, combined with the inherent advantages of solar power—its versatility, cost-effectiveness, and quick deployment capabilities—have positioned it as a crucial component of the global energy mix. Despite challenges such as supply chain disruptions and inflation, solar energy remains cheaper than new fossil fuel and nuclear power sources.

The report highlights that solar power is increasingly recognized by policymakers as a key tool for achieving local energy security. The energy crisis triggered by fossil fuel dependencies, especially evident in the context of the European Union’s reliance on Russian gas, has underscored the strategic importance of solar energy. The EU Solar Strategy of May 2022, for instance, emphasized solar power as a pivotal element in reducing this dependence. 

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

The outlook for 2023 and beyond is optimistic. The report’s Medium Scenario predicts the installation of 341 GW of new solar capacity worldwide in 2023, maintaining the high growth rate seen in 2022. Under improved market conditions, this figure could exceed 400 GW. By 2027, the global market could reach 617 GW of new installations, pushing total operating capacities above 3.5 TW.

This expansion is expected to result in a record number of countries achieving GW-scale markets. In 2022, 26 countries installed at least 1 GW of new solar capacity, and this number is forecasted to rise to 32 in 2023, 39 in 2024, and at least 53 by 2025. Such growth will be crucial for meeting the increasing global demand for clean energy and reducing reliance on non-renewable sources.

The report also focuses on specific regional markets and emerging trends. This edition places a spotlight on Southeast Asia, highlighting the region’s significant solar potential. With the support of the Global Solar Council (GSC), the report provides an in-depth analysis of photovoltaic (PV) deployment in Southeast Asia, projecting a 13% increase in the regional market to 3.8 GW in 2023.

Corporate Power Purchase Agreements (PPAs) in emerging markets are another area of focus. These agreements are becoming increasingly important as they provide a mechanism for financing and developing new solar projects, particularly in regions with less mature energy markets. The report outlines the advances and challenges in these markets, emphasizing the need for supportive policy frameworks to facilitate further growth.

Overall, the Global Market Outlook for Solar Power 2023-2027 paints a promising picture for the solar industry. With continued advancements and supportive policies, solar power is well-positioned to play a leading role in the global transition to sustainable energy. The report underscores the industry’s resilience and potential for growth, highlighting the critical role of solar energy in addressing the world’s energy and climate challenges.