Solar potential underutilised in sunniest markets

Access to financing remains a barrier to increasing solar capacity.

Despite the surge in solar power capacity in 2023, a “vast solar potential remains untapped” as the sunniest markets have the least installed solar capacity, according to energy think tank Ember.

In a report, Ember said that only 14% of the global solar capacity installed last year or around 204 gigawatts were located in markets with solar insolation that is above the global average.

For example, Japan has 13 times more solar panels per person installed than India and 41 times more than Egypt when these two other countries coil produce 32% and 64% more power, respectively.

Africa accounted for only 0.2% of solar additions last year.

“This underscores the vast untapped potential in markets with higher insolation, which would lead to higher solar capacity factors. Therefore, stronger support for solar projects in countries with high potential such as India and African countries, is imperative,” the report read. 

“Unleashing their potential will benefit greatly from the dramatic reduction in solar costs, largely driven by early adopters’ support,” it added.

Ember also said that limited access to affordable financing remains a key barrier to boosting solar growth in Africa.

It added that stronger support and investment in regions with high solar potential can further accelerate renewables growth, and contribute to tripling renewables by 2040, at an average annual growth rate of 16%.