GSC and SPE estimate the global solar PV installed capacity to have achieved the 2 TW milestone in recent weeks
It entails around 7 billion solar panels; the industry is backed by 1.1 TW of manufacturing capacity
To achieve the 8 TW COP28 goal, it needs to be supported by commensurate financing
The GSC says it plans to launch an International Solar Finance Group at COP29 to encourage dialogue with the financial sector
Having taken 68 years to reach the 1 TW milestone from 1954 to 2022, the global solar PV market took only 2 years (2022-2024) to achieve the next TW scale to achieve the 2 TW milestone, just days ahead of the 29th Conference of the Parties (COP29), according to the Global Solar Council (GSC) and SolarPower Europe (SPE).
The 2 TW milestone was achieved in recent weeks, according to their estimates, ‘against the backdrop of a Donald Trump presidency in the US’ (see Fate Of US Solar PV Industry Under Donald Trump 2.0). The solar PV technology has thus proven its mettle.
Drawing attention to the magnitude of this milestone, they say that this 2 TW is equivalent to the total installed electricity capacity of India, the US and the UK combined. Around 7 billion installed solar panels that this capacity represents can power an estimated 1 billion homes based on a global average of households’ energy consumption of 3,500 kWh/year and a 20% capacity factor.
“Forward-thinking policy, industrial ingenuity, 7 million hard-working solar installers and a versatile and scalable technology have all brought us to this moment,” said the GSC CEO Sonia Dunlop.
The next target is achieving 8 TW solar PV capacity by 2030, meaning adding 1 TW annually till 2030 as the world pursues the goal of tripling renewable energy installed capacity to 11.2 TW. According to an IRENA report, solar PV is the only technology that is on track to reach its target of 5.5 TW by the end of this decade (see Tripling Renewables By 2030 Requires $1.5 Trillion Investment/Year).
The world’s existing solar PV capacity is backed by 1.1 TW of global manufacturing capacity; however, the lack of financing is a hindrance to achieving the 8 TW goal.
“To get there we need to unlock financing and bring down the cost of capital for solar projects, particularly in the Global South. If the cost of capital is now at 15%, we need to bring it down to 5% or less. This is what we will be working on at COP29 Baku,” explained Dunlop.
At COP29, the GSC plans to launch the International Solar Finance Group as the world’s ‘first ever’ global dialogue between the solar PV industry and the finance sector. The aim is to bridge the financial gap between ambition and deployment.
The Chair of the GSC and Director of Global Affairs at SPE Máté Heisz added, “We urgently need support from national governments and investors to deliver our tripling renewables target. It’s time to bring everyone aboard our clean energy transition journey.”
Investment support should also flow into solar projects, supply chain and infrastructure development. Along with financing, the 8 TW target achievement will also require 1.5 TW of global storage capacity as well as building 25 km of grid infrastructure, according to the analysts.
A recent Bloomberg New Energy Finance report emphatically declared that the world can meet the COP28 goal of 11 TW of renewable energy capacity with solar alone, but for sustainable growth other renewable energy technologies need to expand as well (see BNEF: Solar Can Triple Global Renewables Capacity By 2030).
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