The annual PV market reached 175 GW worldwide in 2021. While the world was facing the second year of a pandemic and despite the end-of-year disruptions in Asia, the photovoltaic market continued growing. Without these drawbacks, it probably could have reached 200 GW. This is an exceptional result: 945,7 GW of PV power plants were producing electricity worldwide at the end of the year, of which around 70% have been installed during the last five years. Over the years, an increasing number of markets have started contributing to global PV installations, and 2021 closed with a record number of new countries installing significant numbers of PV. The upward trend in module prices observed at the global level at the end of 2021, related to stress on several raw materials markets, has not affected the competitiveness and development of the market. PV’s role in the global transition to low-carbon energy is confirmed. 1200 TWh are produced annually by PV plants, the equivalent of the combined annual consumption of Germany, France, Spain, and Belgium. The PV capacity globally avoided no less than one billion tons of CO2, equating roughly to 3% of annual global emissions, which reached 33 Gt in 2021. PV is thus already a key decarbonization power source.
The rapid decline in PV prices over the past years, despite the conjectural recent price increase, has enabled PV systems to achieve competitive prices in several countries. The possibility of developing photovoltaic systems with limited or no financial incentives is now an observable reality. Long-term private contracts (PPA) and the sale of electricity on wholesale markets have been observed in an increasing number of countries in 2021. This growing competitiveness has also boosted the share of PV installations operating under self-consumption without any financial support mechanism. If electricity prices should remain at the high level experienced in 2022 in several places around the world in 2022, especially in Europe, the question of competitiveness would change completely: without any support scheme limitations, the potential of the PV market seems virtually unlimited.
With this broader integration, the question of access, management, and financing of the grid will become a key challenge. The electrification of the transport sector, as well as storage capacities and the production of green hydrogen, will increase the demand for low-carbon electricity. The competitiveness also paves the way for further integration in buildings, vehicles, infrastructure, and cross-cutting applications with nearly every energy-consuming sector. One of the most promising hybrid segments is called AgriPV, which combines agriculture with energy production. While still a niche market at this point, AgriPV shows significant development potential.
The social acceptance of the energy transition is a major issue and is becoming a key subject for the development of PV. It is multifaceted: economic, social, societal, and environmental, but also aesthetic. PV is a major contributor on the road to sustainability: the nature of the energy transformation, and the acceptance of change are essential elements in the success of this revolution: dealing with the number of jobs concerned, the impact on the environment and the social aspects linked to the development of PV has become unavoidable. Ensuring a local development of the PV industry and improving the use of resources is part of the response to the need for PV to be more virtuous than the energy sources that it replaces.
In 2022, photovoltaic technology has become increasingly a source of affordable, local, and low-carbon energy. In the context of geopolitical tensions and resource scarcity, PV could become a stabilization element, promoting peace through reduced tensions in energy markets while accelerating the development of the world.