How will solar meet the demand surge in 2025?

According to EIA, The electric power sector will add 26 gigawatts (GW) of new solar capacity in 2025 and 22 GW in 2026. These additions will boost U.S. solar generation by 34% in 2025 and 17% in 2026. But the question is how will solar meet the demand surge. The Wood Mackenzie report highlighted some ways the industry will adapt. They are:

Was 2024 a good year for solar power?

The year 2024 was a true landmark year for solar power. Global solar installations reached nearly 600 GW – an impressive 33% increase over the previous year – setting yet another record. Solar accounted for 81% of all new renewable energy capacity added worldwide.

What if the solar market trajectory continues?

If the solar market trajectory continues as projected, total global solar installations are set to triple over the next five years, surpassing 6 TW by 2029 in the Medium Scenario. By extrapolating this trajectory to 2030, total solar capacity will stand at 7.1 TW by the end of the decade.

Will energy storage growth continue through 2025?

With developers continuing to add new capacity, including 9.2 GW of new lithium-ion battery storage capacity in 2024 through November 2024 and comparable levels of growth expected through the fourth quarter of 2024, energy storage investments and M&A activity are expected to continue this trajectory through 2025.

How big is solar PV in 2024?

Global solar PV installations set another record in 2024, reaching 597 GW – a 33% increase over 2023, and 148 GW more the previous year (Fig. 1). Although the annual growth rate slowed compared to the exceptional 85% surge in 2023, it was still substantial enough to reinforce solar energy’s leading dominance on global renewable energy expansion.

Is rooftop solar still a viable alternative to distributed solar?

While distributed solar is still vital in countries like Brazil and Germany, utility projects grew rapidly due to economies of scale and the urgency to utilize surplus modules. Still, rooftop PV continues to play a crucial role in energy democratization.