In a recent report, Wood Mackenzie (WoodMac) has predicted that the global solar PV capacity will hit approximately 270GW by the end of this year. The growth in 2024 is expected to rise by 1%, 5% in 2025, but may decline by 1% in 2026. The Asia-Pacific region, including China, is expected to dominate solar deployment prior to 2032, with its leadership likely to continue beyond that.
According to WoodMac, the increase in global solar capacity can be attributed to several factors, including falling costs of solar installations, higher energy demands in developing countries, and favorable government policies and regulations promoting clean energy. It should, however, be noted that these projections are subject to change based on various economic and geopolitical conditions.
Furthermore, WoodMac predicts that by 2025, solar PV generation will be one of the world's cheapest sources of electricity. The drop in price is due to production cost savings for solar modules and cells, increased efficiencies in energy storage, and greater competition within the market.
Whilst there is still considerable progress that needs to be made in establishing the infrastructure and financing the large-scale deployment of solar PV projects, it is clear that the industry is on an upward trend towards expansion and development.
"In light of these predictions, it is crucial for governments, businesses and investors to promote and invest in clean energy solutions, and accelerate the transition to a sustainable, low carbon future," said Tom Heggarty, WoodMac Senior Director.
The report suggests that to meet the Sustainable Development Goals of the United Nations, the industry needs to add at least 1TW of new solar PV capacity every year until 2030. To meet this target, various stakeholders must work together to introduce policies that promote sustainability, increase investment in solar energy development, and foster innovation.
As the world moves towards increasingly sustainable energy usage, it is evident that solar PV is a crucial part of this transition. The rise in capacity and decrease in costs provides added impetus for stakeholders to work together to push for greater implementation of solar technology across the globe.