Solar Energy Facts - Still only 5% of global energy!

Last updated: 13 September 2023

As a leader in the roofing world we keep a keen eye on advancements in the industry, including solar panel technology. Solar energy, is not only a clean, sustainable power source but also one with untapped potential. An astounding 173,000 terawatts of this energy strikes our planet at any given moment.

Why then, with such potential, is solar only fulfilling a fraction of our global energy needs?

Dive into our post to uncover the facts behind solar energy, its immense potential, the strides we've made so far, and the challenges and solutions ahead as we transition to a more sustainable future.

Article Contents

Top Facts (Editors Picks)

Solar Energy Explained
Solar Panels
Solar Energy Costs
Growth of Solar Energy
Solar Energy Installations
Solar Energy and the Environment
The History of Solar Energy

Top Facts (Editors Picks)

Solar energy hitting Earth every moment: 173,000 terrawatts
Solar potential: Enough sunlight every hour to power the entire globe for a year
Photovoltaic effect: When semiconductors are exposed to photons, they release electrons producing an electric current
Typical capacity of a domestic solar installation: Between 2.5 and 8 kilowatts
Solar panels on cloudy days: Capture energy from scattered 'diffuse sunlight' but at reduced efficiency
Efficiency of most residential solar panels: Around 20%
Decline in solar PV module prices since 1998: 92%
Growth of global solar capacity from 2010 to 2021: 929%
Percentage of global energy demand met by solar: still only 5%
Solar energy's cost compared to gas in the U.S.: 33% cheaper
Country with the most installed solar capacity: China (308.5 GW)
Forecasted growth of global solar capacity by 2030: x4
World's largest solar farm: Bhadla Solar Park in India (2.25 GW capacity)
Business with the most installed solar capacity: Meta (3,588 MW), 79% installed since 2020
CO2 emissions saved by a solar-powered home: 100 tons in 30 years
Global saving per year due to solar power: 75 million barrels of oil and 35 million tonnes of CO2

Solar Energy Explained

WHAT IS SOLAR ENERGY?

Solar energy is radiant heat and light from the sun. It is produced by the sun through the process of nuclear fusion.

SOLAR'S POTENTIAL

Solar power is Earth’s most abundant energy source. An overwhelming 173,000 terawatts of solar energy consistently hits our planet. If we could harness it fully, there’s enough sunlight every hour to power the entire globe for a year.

Key Facts:

Solar energy is radiant heat and light from the sun
Solar energy is produced by the sun through the process of nuclear fusion
173,000 terawatts of solar energy consistently hits our planet ^1.
If we could harness it fully, there’s enough sunlight every hour to power the entire globe for a year ^2.

Solar Panels

HOW DO SOLAR PANELS WORK?

Solar panels harness sunlight using semiconductor materials, like silicon, to generate electricity. When these materials are exposed to the photons in sunlight, electrons are released from their atomic bonds producing an electric current. A process known as the photovoltaic effect.

WHAT IS SOLAR PANEL CAPACITY?

Solar panel capacity is the maximum amount of power a solar panel can output when exposed to sunlight, measured in Watts. This is often termed its 'rated output' or 'rated capacity'.

WHAT IS THE TYPICAL OUTPUT OF SOLAR PANELS?

The typical output of a solar panel is between 250 and 350 watts. Most domestic solar installations use 10 to 20 solar panels with a typical capacity of between 2.5 and 8 kilowatts.

DO SOLAR PANELS NEED DIRECT SUNLIGHT?

Solar panels do not need direct sunlight to work. While they do work best in direct sunlight, they can also capture energy from scattered 'diffuse sunlight' on cloudy days. Thus, even without direct sunlight, they still generate electricity, just at a reduced efficiency.

WHAT IS THE TYPICAL EFFICIENCY OF SOLAR PANELS?

Most residential solar panels achieve around 20% efficiency. While panels up to 50% efficiency do exist they come at a much higher cost. The efficiency, along with location and climate, determines a solar panel's energy output.

Key Facts:

Solar panels harness sunlight using semiconductor materials, like silicon
When semiconductors are exposed to the photons in sunlight, electrons are released from their atomic bonds producing an electric current
This process is known as the photovoltaic effect
Solar panel capacity is the maximum amount of power a solar panel can output when exposed to sunlight - measured in Watts
The typical output of a solar panel is between 250 and 350 watts
Most domestic installations use 10 to 20 solar panels
The typical capacity of a domestic solar installation is between 2.5 and 8 kilowatts
Solar panels do not need direct sunlight to work but do work best in direct sun
Solar panels can capture energy from scattered ‘diffuse sunlight’ on cloudy days but at a reduced efficiency
Most residential solar panels achieve around 20% efficiency
Higher efficiencies of up to 50% exist but the panels come at a much higher cost

Solar Energy Costs

COST OF SOLAR ENERGY OVER TIME

Over the past decade, the installed price of residential solar panel systems decreased by 39%, falling from 6.2 $/W in 2012 to 3.8 $/W in 2021. The primary driver of this drop has been the 92% decline in solar PV module prices since 1998.

FUTURE COST OF SOLAR ENERGY?

While solar prices have consistently decreased,they’re expected to level out in the future. Solar PV module prices continue to fall, however they contribute only 15% to the overall installation costs of solar. Consequently, as other installation components remain stable, solar costs are expected to level out.

COST OF SOLAR ENERGY COMPARED TO FOSSIL FUELS

Solar energy, once a more expensive option, has become increasingly affordable. By 2017, it had become the cheapest energy source in many regions of the world - outcompeting coal and gas in various auctions for power contracts. Solar energy is now 33% cheaper than gas power in the U.S.

Key Facts:

Over the past decade, the installed price of residential solar panel systems decreased by 39% ^3.
There has been a 92% decline in solar PV module prices since 1998 ^3.
While solar prices have consistently decreased, they are expected to level out
Solar PV module price only contributes 15% of overall installation costs ^3.
By 2017 solar energy had become the cheapest energy source in many regions of the world ^4.
Solar energy is now 33% cheaper than gas in the U.S. ^5.

Growth of Solar Energy

SOLAR ENERGY GROWTH OVER TIME

The global growth of solar energy has been meteoric, the amount of solar being installed grew 929% from 2010 to 2021. Global capacity reached 942 GW in 2021, powering 5% of the world's electricity needs. This growth signifies a promising shift towards sustainable energy.

WHICH COUNTRY USES THE MOST SOLAR ENERGY?

China uses the most solar energy, boasting a remarkable 308.5 GW of Solar capacity by the end of 2021. Following closely, the USA has installed 123 GW and Japan has contributed with 78.2 GW. Other noteworthy players in the solar industry include India with 60.4 GW and Germany holding 59.2 GW of capacity.

SOLAR ENERGY GROWTH PROJECTIONS

Solar energy's growth trajectory paints a promising picture. Projections are that global solar capacity will quadruple by 2030. However, it's essential to contextualize this growth. Solar currently meets only 5% of the global energy demand, underscoring the vast untapped potential.

Key Facts:

The amount of solar being installed grew 929% from 2010 to 2021 ^6.
Global capacity of solar reached 942 GW in 2021, powering 5% of the world's electricity needs ^7.
China uses the most solar energy, boasting a remarkable 308.5 GW of Solar PV capacity (2021) ^7.
Forecasts suggest that global solar capacity will quadruple by 2030 ^8.
Solar currently meets only 5% of the global energy demand ^6.

Solar Installations

WHAT IS THE LARGEST SOLAR POWER PLANT IN THE WORLD?

Bhadla Solar Park in Rajasthan, India, holds the title as the world's largest solar power plant with a capacity of 2.25 GW. Spanning over 14,000 acres, it became operational in 2017 and required an investment of over 1.3 billion dollars.

WHICH COMPANIES GENERATE THEIR OWN SOLAR?

Top companies, including Meta, Amazon, Apple, Walmart, and Microsoft are investing heavily in solar energy. Meta currently leads with 3,588 MW of solar capacity, with 79% of this installed since 2020.

Key Facts:

Bhadla Solar Park in Rajasthan, India, holds the title as the world's largest solar farm with a capacity of 2.25 GW ^9.
Top companies, including Meta, Amazon, Apple, Walmart, and Microsoft, are investing in solar energy
Meta has the most solar capacity with 3,588 MW of installed capacity, with 79% of this installed since 2020 ^10.

Solar Energy and the Environment

HOW DO SOLAR PANELS HELP CLIMATE CHANGE?

Solar panels help climate change by producing clean, pollution-free energy. A single solar-powered home can slash CO2 emissions by 100 tons in 30 years. This shift to solar means less reliance on fossil fuels, saving 75 million barrels of oil and 35 million tonnes of CO2 every year.

WHAT IS THE ENVIRONMENTAL IMPACT OF MANUFACTURING SOLAR PANELS?

While producing solar panels does result in some environmental pollution, advances in technology are reducing these effects. Over their lifespan, solar panels offset their initial carbon footprint within a few years, making them a net positive for the environment.

Key Facts:

A single solar-powered home can slash CO2 emissions by 100 tons in 30 years ^11.
The use of solar power is saving 75 million barrels of oil and 35 million tonnes of CO2 every year ^12.

The History of Solar Energy

WHO DISCOVERED THE PHOTOVOLTAIC EFFECT?

Edmond Becquerel, a French scientist, made the groundbreaking discovery of the photovoltaic effect in 1839. He unveiled how light could generate electricity in certain materials, a discovery that has laid the foundation for modern solar technology.

WHO INVENTED SOLAR PANELS?

The first silicon solar cell, a precursor to modern solar panels, was built by Bell Laboratories in 1954. This pioneering creation marked a major milestone in harnessing solar energy. Todays, solar panels have evolved from this early innovation.

Key Facts:

Edmond Becquerel, a French scientist, made the groundbreaking discovery of the photovoltaic effect in 1839.
The first silicon solar cell, a precursor to modern solar panels, was built by Bell Laboratories in 1954.

Conclusion

In our exploration of solar energy, we've delved deep into its mechanics, history, and potential. We've learned about the significant decrease in solar installation costs, which have fallen by 39% over the past decade.

Solar energy's growth has been nothing short of meteoric, with global installations growing by 929% from 2010 to 2021. The fact that solar energy is now 33% cheaper than gas in the U.S highlights a promising future for the sector.