Solar Power Breaks Global Records

In 2023, the world saw an unprecedented surge in solar energy, with 428 gigawatts (GW) of solar capacity installed—more than the combined total of the previous two years. According to new data from BloombergNEF, solar installations in 2023 soared by 76% compared to 2022, marking a dramatic leap in the industry’s growth.

To put this into perspective, 243 GW of solar panels were installed worldwide in 2022, and 175 GW in 2021—both of which were record highs at the time. However, the amount installed in 2023 alone exceeded the total capacity deployed during those two record-breaking years combined. BloombergNEF’s data includes installations across utility-scale, commercial, and residential solar sectors.

Solar power is now the fastest-growing energy source globally, and the majority of new electricity capacity added worldwide is now clean energy. One of the main drivers behind solar’s rapid expansion is its cost-effectiveness. According to the International Energy Agency, utility-scale solar is the cheapest option for new electricity generation in most countries.

As major carbon-emitting regions take decarbonisation more seriously, they are increasingly turning to affordable, clean solar power. In 2023, the U.S. added 37 GW of solar capacity, while China led the world with a staggering 261 GW. China’s solar installations in 2023 alone exceeded the total capacity installed by any other nation in history.

“Even though solar and wind capacity additions are growing, the increase is still largely concentrated in a few countries,” noted Sofia Maia, head of country transition research at BloombergNEF. However, other nations are making strides as well. Pakistan, for example, jumped to the fifth-largest market for new solar investment in 2023, driven by affordable rooftop solar and favorable buyback rates.

While BloombergNEF expects solar’s growth rate to moderate in 2024, the outlook remains positive. The firm forecasts that nearly 600 GW of solar capacity will be installed in 2024—a 33% increase over 2023, and almost equal to the total capacity deployed globally between 2017 and 2021.