The solar power industry experienced a landmark year in 2023, as detailed in the latest Spring 2024 Solar Industry Quarterly Update from the National Renewable Energy Laboratory (NREL). David Feldman, an NREL analyst, emphasized that 2023 marked historic progress for the industry. Every quarter, Feldman, along with a team of analysts and data experts from NREL and the U.S. Department of Energy (DOE), compiles comprehensive data for this update. 

A critical aspect of the quarterly update is its use of publicly accessible industry data from various sources, making valuable information available to stakeholders who might otherwise struggle to obtain it. The Quarterly Solar Industry Update includes detailed analysis, visualizations, and context on various aspects of the solar industry, such as photovoltaic (PV) module production, supply chains, electricity generation, and end-use data. The data from 2023 reveal rapid growth and highlight promising future trends.

The Spring 2024 edition provides a comprehensive overview of developments in the solar market throughout 2023 and offers projections for the period from 2024 to 2050. According to reports from the International Energy Agency, global PV installations saw a dramatic increase, with up to 446 gigawatts of direct current (GWdc) connected. Analysts project that by 2030, global PV capacity could reach five terawatts (TWdc), and by 2050, it could grow to 15 TWdc. This amount of energy would represent 66% more generation capacity than all the electric generation assets currently installed worldwide combined and could power approximately 200 LED lightbulbs for every person on Earth simultaneously.

Global Annual PV Capacity Additions by Country

Source: NREL

China dominated global PV deployment, accounting for roughly 60% of new installations, while the United States secured the second-largest share of PV installations last year. "Over the past 15 years, China has transitioned from being a leader in manufacturing to dominating many segments of the solar supply chain and emerging as the key market for solar deployment," Feldman noted.

Annual United States Electricity Capacity Additions by Source

Source: NREL

In the United States, domestic PV deployment grew faster than ever before, representing more than half of the new electricity generation capacity in 2023, with 32–40 GWdc of PV installed, depending on the installation dates. Another significant piece of data indicated that the recent decline in global module prices had stabilized, with prices remaining around 11 cents per Wdc in the first quarter of 2024. However, in the United States, while average module prices fell approximately 5% in the fourth quarter of 2023, they remained about 140% higher than global prices, at 31 cents per Wdc.

Global Annual PV Shipments by Region

Source: NREL

The year 2023 was also notable for PV manufacturing and shipping. Globally, shipments increased by 100% year over year from 2022, reaching approximately 564 GW of PV modules shipped, according to Solar PV Market Research. The United States produced about 7 GW of PV modules last year and, according to U.S. Census data, imported 55.6 GWdc of modules, an 87% increase in imports from 2022.