The stellar growth of solar power could help transform many energy systems around the world. Renewable power is set to eclipse coal in 2025. Concentrated supply chains pose a key risk for solar PV.

Benefitting from supportive policies, the cost of electricity generated from solar panels (or solar PV) has fallen dramatically in recent decades. This has contributed to a boom in solar PV deployment, with global capacity now growing at a historic pace.

Policy support and falling costs drive solar to new heights. Annual additions of solar PV capacity compared with cost of electricity from solar PV. Between 2018 and 2023, global solar PV capacity tripled. This boom is changing how the world generates electricity. In fact, with solar PV complementing hydro and wind power, renewables are set to generate more electricity than coal next year. That would be a first.

China’s investment in solar has helped to bring down costs worldwide but resulted in highly concentrated manufacturing supply chains. Greater diversity will be important as the rollout of solar power accelerates.

/IEA/