Global Solar Installations on Track for Another Record Year

(Bloomberg) -- Solar capacity around the world will be installed at a record pace in 2024, as bargain panel prices help countries’ efforts to deploy cleaner energy.

Global additions are set to hit 593 gigawatts this year, a jump of about 29% from last year, London-based energy research firm Ember said in a new report. The increase comes on top of a near doubling of new installations in 2023, and largely matches a forecast from BloombergNEF. 

Major markets like China, India and Germany have continued to show steady growth this year, Ember said, while demand has soared from countries that previously showed little interest in solar, such as Saudi Arabia and Pakistan. 

The US also showed strong growth in the first half of the year, although the country’s Solar Energy Industries Association recently surprised investors by forecasting an annual decline in installations in 2024, driven by a deteriorating market for rooftop panels.

Prices for solar modules have fallen to a record low of about $0.10 per watt, according to BloombergNEF. That’s been great news for solar developers, but it means equipment manufacturers have been losing money. 

In addition to those companies’ woes, some countries are starting to have trouble digesting so much solar capacity that generates at full throttle in the middle of the day but disappears at night. Investing in grid infrastructure to solve those problems will be important for ensuring solar keeps growing through the end of the decade, helping the world as it tries to triple renewable capacity, Ember said. 

“The key will be to ensure that countries have sufficient grid capacity to transport power to where it is needed, as well as develop battery storage capacity to complement solar outside of the sunniest hours,” the report said.

©2024 Bloomberg L.P.