As we conclude 2024, it will likely be remembered as a transformative year for solar energy. From groundbreaking innovations to policy shifts, this sector has experienced many changes. With its growing demand, this sector is expected to increase at a growth rate of 7.1% between 2024 and 2029. Solar energy in 2024 has firmly established itself not as an alternative but as a primary energy source for millions. Let’s look closely at how this sector has experienced transformations this year.
Technological Breakthroughs
This year was nothing short of technological advancements for solar energy. Thin film solar panels have reached new efficiency milestones making them a viable alternative for silicon-based systems. Meanwhile, the integrations of AI and IoT-enabled energy management systems have seen impressive growth. According to a report by The Business Research Company, AI in the energy market will grow from USD 5.23 billion in 2023 to USD 6.39 billion in 2024 at a Compound Annual Growth Rate (CAGR) of 22.2%. This tech has empowered households and businesses to optimise their energy needs and cut their cost of electricity bills.
One of the most exciting innovations this year is the increased adoption of perovskite solar cells. According to Fortune Business Insights, the global market for these cells is expected to grow from USD 105.23 million in 2024 to USD 1760.59 million by 2032 with a CAGR of 42.21 %. Their scalability and cost-effectiveness have put them at the forefront, prompting a future where solar installations could be even more accessible.
Solar Gains Widespread Acceptance
2024 marked a significant turning point in the widespread adoption of solar energy. For instance, solar rooftop installation experienced unprecedented growth, driven by decreasing costs, supportive policies, and heightened awareness about sustainability. Urban and rural areas have embraced solar solutions, challenging the misconception that solar panels are an exclusive privilege of the elites. Even in India, rural areas have more rooftop panel potential (363 GW) than urban areas (274 GW).
The country has emerged as a global leader in solar capacity expansion. By March 2024, it had commissioned approximately 65.6 GW of utility-scale solar capacity where Rajasthan has emerged as a top leader with an installed solar capacity of 19.9 GW, followed by Gujarat at 10.6 GW and Karnataka at 9.2 GW. Moreover, the fiscal year 2024 has witnessed a significant increase in solar installation. India added approximately 11.7 GW of utility-scale solar capacity and 3 GW of rooftop solar capacity. These figures show growth rates of 14.5% and 36.4% respectively compared to FY 2023. Such robust expansion has emphasized the fundamental role of solar energy in India’s transition towards renewable energy dominance and reinforces its commitment to achieving its net zero emissions target by 2070.
Policies Pave The Way For Solar Energy
The regulatory landscape has also ingrained a positive impact on solar energy. Countries like India have doubled their commitment to renewable energy by introducing schemes like PM Surya Ghar-Muft Bijli Yojana. The scheme has aimed to provide free electricity to Indian households who have installed solar panels on their rooftops. The subsidy will cover up to 40% of the installation cost of solar panels incurred by the government . Moreover, it is expected to benefit more than 1 crore households across India. Globally too, at COP 29 held in the United Arab Emirates(UAE), 130 nations have pledged to triple their global renewable energy capacity and double the yearly rate of energy efficiency advancement by 2030 through apt policies and regulations.
What Were The Challenges?
While various tech and policy advancements have made solar energy a successful sector, there were major hurdles on its road to success. For instance, supply chain disruption posed significant challenges in procuring raw materials like polysilicon. Moreover, geopolitical tensions between nations like the USA and China added an extra layer of complexity causing a temporary slowdown in the manufacturing of important components and equipment required for the sector. But every adversity breeds innovations. Consequently, this has given push to localised production units and collaborative models which emerged as viable solutions demonstrating independence and resilience over uncertainty. Moreover, the solar industry is grappling with the issue of recycling old panels since they have reached their end-of-life phase. For them, disposal is a pressing concern. Companies are now pushing for circular economy models to tackle this hurdle and promote sustainability.
The Collective Role Of Individuals And Businesses
With the rise in environment-conscious consumers, the need for clean energy has increased like never before. According to Statista, 47% of Generation Z wanted to install solar panels in the last 5 years. Community-led solar initiatives have also empowered local populations, creating jobs and enabling energy independence. In India, the solar PV sector has employed more than 3 lakh people in off-grid and on-grid systems.
Meanwhile, businesses have also stepped up to deliver tailored solutions for their diverse markets. They are providing scalable solar technologies that can be catered to both urban and remote areas. With innovative turn-key solutions, maximized efficiency, and affordability, some companies have emerged as a vital contributor to this sector’s growth.
What 2025 Will Bring For Solar?
As we enter into 2025, the momentum that has been built in 2024 has set an optimistic tone for solar. One of the key trends that 2025 might experience is the expansion of solar energy storage solutions, making them more reliable than ever. Additionally, a hybrid model that combines solar with hydro or wind power could gain significant traction. Furthermore, the global focus on decarbonisation is likely to intensify given that every nation has set their net zero emission goals. Solar energy which is already a critical player in the future is poised to take a pivotal space in the energy sector as a whole with its global market expected to grow from USD 273 billion in 2024 to USD 436.36 billion by 2032.
The author, Shreesh Chaturvedi, is MD and Co-founder at Vareyn Solar