The sector experienced huge growth in 2023 with solar cell, wafers and modules capacity nearly doubling in comparison with the previous year, says World Solar Market Report 2024
Published – November 06, 2024 04:03 am IST – NEW DELHI
By the end of 2024, global solar manufacturing capacity is likely to reach over 1,100 GW, far exceeding the demand for photovoltaic panels. The sector experienced significant growth in 2023, with solar cell, wafers and modules capacity nearly doubling in comparison with the previous year. However, this led to a market oversupply that brought down module prices by more than a half and resulting in negative margins for manufacturers in 2024, according to the World Solar Market Report 2024 that was made public at the International Solar Alliance (ISA) conclave here on Tuesday.
“Due to these market pressures, global supply chain investments are expected to slow, with the anticipated capacity for 2030 expected to be lower than anticipated (in 2023). China will continue to dominate solar photovoltaic manufacturing through 2030, holding over 80% of the global capacity across all photovoltaic segments. The centralisation of the solar PV supply chain, while efficient, presents risks that could hinder renewable energy advancements. To counteract the vulnerabilities of a centralised supply chain, the industry is shifting towards diversification, leveraging technological advancements, and enacting supportive policies to build a more resilient system,” the report noted.
Over the last two decades, global solar capacity rose from 1.22 GW (gigawatt) in 2000 to 1,418.97 GW in 2023 — or a 40% annual growth rate. In 2023 alone, 345.83 GW of solar power was added, accounting for three-quarters of all new renewable capacity worldwide.