Global PV additions to hit 270 GWp in 2023 and rise afterwards

The global solar photovoltaic (PV) industry is on track for a new record of annual deployments of close to 270 GWp in 2023, with the buildout expected to keep the upward trend and reach 330 GWp per year by 2032, according to Wood Mackenzie.

In its latest global solar PV market outlook update released last week, the research and consultancy group said that the solar expansion will accelerate in all regions in the coming years, driven by increased electrification, coal power plant retirements, growing energy security concerns and expanding policy support.

Plunging polysilicon prices will be a major driver, especially in China, but the country’s global share of buildout will shrink to 30% by 2032 as the US market gains momentum due to the Inflation Reduction Act (IRA). After an all-time high level of solar additions in the first quarter, of 6.1 GWp, the world’s largest economy is set to deliver a 39% year-on-year recovery in 2023.

The European market, meanwhile, is fuelled by an uptick in the residential segment, with all countries working to enhance their national energy and climate plans and comply with the EU’s renewable energy directives.

Globally, solar PV deployments are forecast to grow at an annual average of 5% between 2023 and 2032. Europe is projected to add over 530 GW in that period.

In manufacturing, China is still seen to be the market driving force at least for the next five years as policy incentives in the US, Europe and India are not expected to significantly affect its dominant position. The Asian country is anticipated to shift the focus of its exports from modules to upstream cells and wafers, Wood Mackenzie said.

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