Global PV Capacity Hit 1.6 TW In 2023

The global PV market witnessed substantial growth in 2023, with installed capacity reaching 1.6 TW, up from 1.2 TW in 2022, according to the IEA-PVPS Snapshot of Global PV Markets 2024. A significant portion of this growth, approximately 446 GW, stemmed from new PV system installations, predominantly propelled by China. Additionally, an estimated 150 GW of PV modules were present in inventories worldwide.

Module prices experienced a sharp decline due to market oversupply, despite decreases in electricity prices following historic peaks in 2022. The IEA-PVPS report highlighted challenges in aligning production with demand, particularly emphasizing the struggle to develop local manufacturing facilities amid an oversaturated market and inconsistent political support.

Both rooftop and utility-scale segments saw growth in 2023, with approximately 45% of new capacity installed on rooftops. This trend reflects increased accessibility for residential investors, driven by decreasing installation costs and higher consumption expenses. Prosumers are emerging as significant market influencers, with a shift away from net metering as PV costs decrease.

The report noted a doubling in the number of countries with theoretical penetration rates exceeding 10%, highlighting Spain, the Netherlands, Chile, and Greece as leaders in this aspect. Larger countries like Germany and Japan also surpassed the 10% mark for the first time.

As PV penetration rates rise globally, grid operators face challenges in managing PV integration effectively. Some regions experienced periods where rooftop solar accounted for 100% of power generation, necessitating proactive grid management measures.

Policy support for batteries is on the rise, particularly in areas grappling with grid congestion, high penetration rates, or elevated electricity costs. However, grid congestion and prolonged grid connection delays hinder the full development of local PV markets, underscoring the importance of addressing grid infrastructure challenges.

PV remains a pivotal player in the broader energy transition, representing over 75% of all new renewable electricity technologies in 2023. This dominance is attributed to consistent cost reduction, technical advancements, and faster permitting procedures compared to other renewable energy sources.

The latest IEA PVPS report complements previous publications on topics such as Germany’s end-of-life PV module treatment, grid integration strategies, and vehicle-integrated photovoltaics.