The year 2023 marked a significant milestone in the realm of renewable energy, as solar power emerged as the driving force behind a remarkable 50% surge in global capacity. This remarkable achievement was revealed in the International Energy Agency’s (IEA) Renewables 2023 report, solidifying it as the 22nd consecutive year of record growth in renewable energy additions.
Astoundingly, solar energy accounted for a staggering three-quarters of the new capacity, underscoring its pivotal role in shaping the renewable energy landscape. The primary catalyst behind this unprecedented growth was none other than China, which spearheaded the charge towards a greener future. The IEA’s report revealed that the volume of new solar additions in China alone in 2023 equalled the combined global additions witnessed in the preceding year of 2022.
This revelation should hardly come as a surprise, given China’s longstanding position as a frontrunner in the field of solar photovoltaics. The nation has consistently demonstrated its commitment to sustainable energy solutions, boasting an impressive presence with five out of the top 15 largest solar farms worldwide. Furthermore, China proudly houses six of the seven largest solar panel manufacturers, further cementing its dominance in this crucial sector.
Such exponential growth in renewable energy sources has far-reaching implications. Carbon Brief, a renowned climate analysis organization, estimates that within the next five years, renewables will generate an ample supply of electricity to meet the needs of both the United States and Canada. This projection underscores the immense potential of renewable energy to revolutionize the global energy landscape.
The IEA, renowned for its insightful forecasts, predicts that by 2028, renewables will account for a remarkable 42% of global electricity production. Within this impressive figure, solar and wind energy are expected to spearhead the capacity expansion, contributing a staggering 95% of the overall growth. These projections highlight the pivotal role that solar and wind energy will play in shaping the future of global electricity generation.
What’s behind the growth?
One crucial factor driving the remarkable growth in renewable energy is its cost-effectiveness compared to fossil fuels, rendering it an exceptional investment opportunity.
According to the International Energy Agency (IEA), as of 2023, a staggering three-quarters of newly established solar and wind farms boasted lower generation costs than their fossil fuel counterparts. This significant cost advantage has contributed to the rapid expansion of renewable energy sources.
Furthermore, the spot price of solar panels has witnessed a remarkable 50% decrease in comparison to 2022. This decline can be attributed to the projected surplus in manufacturing capacity, which is expected to outpace demand by 2024.
Another pivotal catalyst for the surge in renewable energy adoption is the implementation of favorable government policies. More than 130 countries have enacted policies that actively support the expansion of renewable energy, as recognized by the IEA. These policies have played a pivotal role in driving the growth of renewable energy sources.
However, the IEA has cautioned that further government intervention is necessary to accelerate this growth. Challenges such as inadequate financing, perceived policy uncertainties, and administrative barriers continue to hinder the launch of new renewable projects, consequently driving up their costs.
A prime example of these challenges can be observed in the offshore wind projects in the United Kingdom. In September 2023, the government’s Contract for Difference auction failed to attract any bids from investors interested in launching new wind projects. Industry experts widely agreed that the scheme’s incentives were insufficient relative to the projected costs of these projects. Moreover, the government’s failure to account for the high inflation prevalent in the wind sector further exacerbated the situation.
The IEA report concurred with these concerns, highlighting that the wind industry has experienced a significant decline in market value due to the financial obstacles it faces.
The Future
According to the International Energy Agency (IEA), global renewable energy capacity is projected to reach 7,300 gigawatts (GW) by 2028, with a subsequent 2.5-fold increase by 2030. While this growth falls slightly short of the COP28 goal of tripling renewables, it would still result in a substantial capacity of 11,000 GW by 2030.
Nevertheless, the IEA report emphasizes that the objective of tripling renewables can still be attained through increased government support. Such backing is crucial to ensure the realization of this ambitious target.
China, a frontrunner in renewable energy, is expected to play a pivotal role in this sector. By 2028, China is projected to contribute up to 60% of the new renewable capacity being added globally. Furthermore, it is anticipated that half of China’s electricity will be generated from renewable sources, an impressive achievement for a country of such magnitude.
To solidify China’s dominance in the renewables industry, the Chinese company BYD recently surpassed the US-based Tesla in sales during the final quarter of 2023, marking a significant milestone.
In conclusion, while the current growth rate indicates substantial progress in renewable energy capacity, further government support is necessary to achieve the goal of tripling renewables. China’s leading role in this sector, coupled with its impressive market performance, underscores its position as a key player in the global renewables industry.
Are you ready to invest in Solar Panels and convert to renewable energy?
If you are a UK homeowner and interested in learning more about the different types of Solar PV systems, contact our expert team today. By filling out our contact form, our team will provide you with a free no-obligation quote to install a bespoke solar PV system, catered to your energy needs. Call us on 01268 928 690 or click the ‘Enquire Now’ button below to claim your free no-obligation quote and solar panel system design.
Frequently Asked Questions about Solar Power
2023 was a record year! Solar power provided half the new renewable energy, and it’s been growing for 22 years straight.
China! They’re building huge solar farms and became the world’s top panel maker.
It’s getting cheaper – in 2023, most new solar farms were cheaper to run than fossil fuels! And panels themselves are 50% cheaper than last year.
Over 130 countries are boosting renewables, but paperwork delays and funding issues can still slow things down.
The IEA predicts it’ll triple by 2030, reaching the COP28 goal. China could generate half its electricity from solar by 2028!
Did You Know? China’s BYD even beat Tesla in electric car sales! So buckle up, the future is bright and sunny for solar.
Latest Saving Energy Posts
- Solar Panels in Essex. Are they worth it?Imagine this: you wake up in the morning, brew a cup of tea using electricity generated by your own roof. Sounds pretty cool, right? But with all the talk about solar panels in Essex, are they really worth the investment for Essex homeowners like yourself? Let’s break down the numbers and see if sunshine can… Read more: Solar Panels in Essex. Are they worth it?
- Is it worth buying solar panels in Kent?Imagine this: you go to switch on the kettle and a surge of guilt hits you as you remember the ever-increasing electricity bill. Sound familiar? Well, what if there was a way to harness the power of the sun and slash your energy costs? Kent, with its decent sunshine hours, might be the perfect place… Read more: Is it worth buying solar panels in Kent?
- Solar Panels and EPC RatingsSolar panels have become increasingly popular as a sustainable energy solution, offering numerous benefits for both residential and commercial properties. In parallel, Energy Performance Certificate (EPC) ratings serve as indicators of a building’s energy efficiency. Understanding how solar panels can impact EPC ratings is crucial for maximizing energy savings and environmental benefits. This blog post… Read more: Solar Panels and EPC Ratings
- Voltage Optimisers, What Are They and How Do They Work?What is voltage optimisation? A voltage optimiser is a smart device that can help you save energy and reduce your carbon footprint. It works by adjusting the power supply from the National Grid to the ideal level for your electrical devices and appliances at home or work. This way, you can use less electricity and… Read more: Voltage Optimisers, What Are They and How Do They Work?
- Best SEG Tariffs/SEG Rates in March 2024In March 2024, the best SEG tariffs and SEG rates are those that offer competitive prices for electricity while also prioritizing sustainable energy sources. These SEG tariffs typically include discounts or benefits for members of specific energy suppliers. By participating in the Smart Export Guarantee (SEG) scheme, consumers can not only save money on their… Read more: Best SEG Tariffs/SEG Rates in March 2024
- The ECO Flex SchemeIf you do not meet the criteria for the ECO4 scheme, there is still a possibility for you to receive funding through the Local Authority and Supplier Flex (ECO Flex) mechanism. ECO Flex enables local authorities, the Scottish and Welsh governments, and energy suppliers to refer households for ECO4, even if they do not fully… Read more: The ECO Flex Scheme
- What are Carbon Credits and how do you get them in the UK?Carbon credits have emerged as a vital tool in the global fight against climate change. As the world faces the urgent need to reduce greenhouse gas emissions, countries and individuals are seeking innovative ways to mitigate their carbon footprint. Carbon credits provide a mechanism for measuring, reducing, and offsetting carbon emissions in a structured and… Read more: What are Carbon Credits and how do you get them in the UK?
- How Solar Panels Can Put More Pennies in Your Pocket this 2024Remember that crisp fiver you found tucked into an old coat pocket – a delightful surprise, like sunshine on a gloomy Thursday. Now, imagine finding that feeling every month on your bank statement, thanks to the quiet whirring of little heroes on your roof: solar panels. In a world where bills inflate faster than a… Read more: How Solar Panels Can Put More Pennies in Your Pocket this 2024
- Reduce Your Energy Bills With Solar PowerImagine this: you open your latest energy bill, brace yourself for another gut punch, and instead…a pleasant surprise. A number so low, it feels like a typo. A number that translates to groceries in the fridge, a night out without guilt, a little breathing room in your ever-tightening budget. Sounds like a fantasy, right? Not… Read more: Reduce Your Energy Bills With Solar Power
- Reasons Why Solar Energy is the Ultimate Homeowner’s InvestmentIn recent years, solar energy has emerged as a game-changer in the world of residential power generation. As concerns about the environment and rising utility costs continue to grow, homeowners are increasingly turning to solar energy as a sustainable and financially savvy solution. This article aims to explore the reasons why solar energy is the… Read more: Reasons Why Solar Energy is the Ultimate Homeowner’s Investment
- Why 2024 is the Year to Switch to Solar Power for Your Care HomeThe global shift towards renewable energy has never been more urgent, and care homes are no exception to this trend. In recent years, solar power has emerged as a viable and sustainable solution for meeting the energy needs of care homes while reducing costs and environmental impact. Now it’s 2024, there is a compelling case… Read more: Why 2024 is the Year to Switch to Solar Power for Your Care Home
- How to Go Green with Solar Panels: A Guide for Smart HomeownersSolar Panels are a great way to save money on your energy bills, reduce your carbon footprint, and increase the value of your home. But before you jump on the solar energy bandwagon, you need to be aware of some potential pitfalls and scams that could cost you more than you bargained for. In this… Read more: How to Go Green with Solar Panels: A Guide for Smart Homeowners