Solar capacity additions to exceed 400 GW for the first time this year

As the end of 2023 approaches, new solar power installations continue to grow, and according to an updated outlook from researchers at BloombergNEF (BNEF), this year's solar capacity additions could reach as much as 413 GW. That is 64% higher than in 2022 and roughly double the newly commissioned solar capacity in 2021. 

BNEF said that while several markets are seeing slower solar development than expected, growth in China is exceeding expectations.

"The biggest upward revision was for China, which could add 240 GW of new capacity this year, but there are now 33 markets around the world installing at least 1 GW each year," BNEF said.

Production exceeds demand as panel prices fall

Despite the sharp increase in new solar installations, demand is nowhere near the manufacturing capacity of leading solar panel suppliers.

"The total manufacturing capacity of leading manufacturers is 839 GW. Panel inventories are therefore piling up in Europe, as the residential solar market is slightly weaker than in 2022 due to falling electricity prices," BNEF added.

Solar panel prices continue to fall as inventories grow, and according to BNEF researchers, they reached as low as 0.128 dollars per watt (roughly CZK 2,900/kWp) at the end of November. Despite this, most manufacturers are not planning to cut production, so panel prices could fall to as low as 0.12 dollars per watt (roughly CZK 2,700/kWp) in the coming months.