Role of solar energy

During COP26, held in November 2021, India announced new 2030 targets of 500 GW of total non-fossil power capacity and 50% renewable electricity generation share (more than double the 22% share in 2020), as well as net zero emissions by 2070, with solar PV being one of the main technologies used to achieve these goals.  

In 2022, solar PV further strengthened its leading position as the power generation technology with the most investment

Global solar PV investments in capacity additions increased by over 20% in 2022 and surpassed USD 320 billion, marking another record year. Solar PV comprised almost 45% of total global electricity generation investment in 2022, triple the spending on all fossil fuel technologies collectively. Investment in PV is expected to grow further in the coming years thanks to ambitious government targets, policy support and increasing competitiveness.

Many global and bilateral collaboration initiatives are advancing technological development and policy support for solar PV

Beyond global renewable energy initiatives that include solar PV (see Renewables), there are numerous international organisations, collaboration programmes, groups and initiatives aimed specifically at accelerating solar PV growth around the world, such as:  

The IEA Photovoltaic Power Systems Technology Collaboration Programme, which advocates for solar PV energy as a cornerstone of the transition to sustainable energy systems. It conducts various collaborative projects relevant to solar PV technologies and systems to reduce costs, analyse barriers and raise awareness of PV electricity’s potential. 

The International Solar Alliance, which is a treaty-based intergovernmental organisation that provides a platform to promote solar energy across 86 member countries in a safe, affordable, sustainable and equitable manner.  

Solar PV is the main renewable technology of choice in the private sector

The private sector’s main activity in solar PV deployment can be divided into two categories: 

Companies investing in distributed (including rooftop) solar PV installations on their own buildings and premises – responsible for 26% of total installed PV capacity as of 2022. 

Companies entering into corporate power purchase agreements (PPAs) – signing direct contracts with solar PV plant operators for the purchase of generated electricity. Solar PV plants dominate renewables PPAs, with a share of almost 70% in 2022.