Demand For Solar Energy Globally Rising Fast, Sales May Exceed $220bn in 2023– Report

Sales of solar energy globally might reach $220bn this year as its demand has greatly risen by 25–30 percent, says Bloomberg Intelligence (BI) new report.

Investors King understands that solar energy is the fastest-growing segment of the energy sector in 2023 which may extend to subsequent years with bigger sales.

According to Bloomberg Intelligence, in its Global Solar Energy 2023 Outlook, the demand for solar energy in 2022 rose about 40 percent with industry revenues at 50 percent.

“The double digit growth is fuelled by favourable economics: a new solar system’s levelised cost of electricity is about $40 a megawatt hour, roughly in line with a new wind plant and over 50% cheaper vs a new coal one.

“We expect 2023 revenue to increase the quickest at inverter manufacturers and equipment suppliers. Sales at Enphase are expected to be up 35 percent in 2023 and 29 percent at SolarEdge,” the report stated.

BI further predicted that the cost of installing solar power is likely to become less expensive compared to nuclear power in subsequent years as manufacturing improves. 

The International Energy Agency (IEA), also declared that solar energy will surpass coal power by 2027, saying the energy crisis and war in Ukraine will direct attention to renewables.

The IEA pointed out that renewable energy will top sources of electricity generation globally in 2025 and twice as much renewable capacity will be derived from 2022 to 2027. 

BI Senior Analyst for Clean Energy, Rob Barnett, said the fast growth line of solar energy sales amongst popular energy firms will not drop as measures to improve its growth are fixed.

Barnett said, “The growth of solar follows a record 2022, during which global solar capacity additions expanded about 47 percent”.

“Best-in-class peers such as Enphase or First Solar could see their sales growth exceed 30% in 2023, and amid such fast line growth, we believe profitability metrics are poised to improve based on an easing of input costs and supply chain constraints.”