Global Solar Capacity Growth Trends
In 2024, the global solar capacity experienced a remarkable expansion, growing by 597 GW, a 27% increase from 2023, according to a report from the International Energy Agency (IEA). This significant growth was predominantly driven by China’s contribution, which accounted for 67% of the total increase by adding 400 GW. Consequently, China’s total installed solar capacity now stands at 1,261 GW, representing 45% of the global share.
The European Union (EU) also made substantial strides, adding 55 GW and raising its share to 11% of the global total. The United States followed with an addition of 42 GW, bringing its share to 9%. India and Japan contributed 23 GW and 8 GW, respectively. Collectively, these five regions were responsible for 90% of the worldwide increase in solar capacity.
This surge in solar capacity marks a pivotal milestone in the global energy transition, with the world’s installed solar capacity surpassing 2,800 GW—a notable increase compared to the previous year. For more information on this growth trend, you can read more about the global expansion of solar manufacturing capacity.
Global Solar Capacity Performance in 2024
The IEA report indicates that solar power installations performed as expected in 2024, with global solar power generation reaching 2,700 TWh—a 29% increase from the prior year. This rise was fueled by the substantial expansion in installed capacity.
China led the charge in solar power generation, producing 1,190 TWh, followed by the United States at 320 TWh, the European Union at 310 TWh, India at 110 TWh, and Japan at 90 TWh. Together, these regions accounted for two-thirds of global solar power generation. Solar power’s share of global electricity generation rose from 4.5% in 2023 to 5.6% in 2024. In the EU, solar power comprised 13% of the electricity mix, while in the U.S., it accounted for 8% of the electricity generated in 2024.
Looking forward, the IEA forecasts continued growth in global solar capacity, with an additional 2,200 GW expected to be added by 2029. This expansion is anticipated to be driven by decreasing capital costs, advancements in module performance, and increased deployment of solar projects, particularly in emerging markets. For insights into India’s solar capacity achievements, visit India’s solar capacity insights.
Cost Reductions and Challenges in Global Solar Capacity Expansion
The IEA report highlights a 13% reduction in the average cost of solar power in 2024, reaching a global weighted average of $705 per kilowatt. This cost reduction has enhanced solar power’s competitiveness, with electricity generation costs dropping to an average of $31 per megawatt-hour.
Despite these advancements, solar power continues to face challenges. The levelized cost of energy (LCOE) for solar projects remains higher than the market value of electricity in many countries, including China, the United States, and India. This has necessitated increased reliance on policy support mechanisms such as auctions, contracts for difference, and power purchase agreements (PPAs) to ensure the financial viability of new solar projects.
Nonetheless, solar power remains integral to the global energy transition. The IEA emphasizes that solar power is poised to become the largest source of electricity generation globally by 2030, surpassing coal. This transition is expected to be accompanied by greater integration of solar power into energy systems, enhanced grid flexibility, and the development of energy storage solutions.
The growth of solar capacity in 2024 underscores the ongoing shift towards renewable energy and the essential role of solar power in achieving global climate goals. As solar capacity continues to expand, it will play an increasingly central role in the global energy mix, driving the transition to a more sustainable and resilient energy future. For additional details on the global solar module capacity, refer to the latest updates on solar module capacity.