Global Market Outlook For Solar 2023-2027

Solar is on the fast track. In 2022, the world installed 239 GW of new solar, finally surpassing the TW-scale. That’s 45% more solar power capacity than the year before. The positive market developments in the first months of 2023 promise another solar boom year, expected to result in 341 GW of newly-added solar to the grid, by the end of the year – equal to 43% growth.

This solar rush comes after more modest progress in preceding years, which were characterised by pandemic triggered lockdowns, supply chain turbulence, and high product prices along the value chain. However, even in trickier times, the solar industry demonstrated very strong resilience, with newly installed global capacities increasing by 19% in 2020 and 18% in 2021.

The reasons for this spectacular performance are obvious. It comes down to the unmatched versatility of solar – powering individual energy self-sufficiency and comparatively quick-deploying utility-scale projects at competitive low cost. Despite solar’s levelised cost of electricity (LCOE) sliding upwards – for the first time – due to supply chain issues and inflation, it remains profoundly cheaper to produce electricity from solar than from new fossil fuel and nuclear power sources.

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