What a year

The American public has suffered through tough economic times after a global pandemic, high inflation, high interest rates and outrageous politics in recent years.

However, as we begin 2024, we think history will look kindly on the 2023 renewable energy industry.

When 2023 is reviewed years from now, it may be seen as something of a turning point when solar power became the cheapest form of electricity in many countries, the price of solar panels went down, and solar energy capacity surpassed hydropower as the No. 1 renewable energy source in the world.

While Red China, Europe and the U.S. each set solar installation records for a single year (according to the International Renewable Energy Agency), mainland China was the winner. It’s expected that somewhere between 180 and 230 gigawatts were installed there.

For perspective, China’s increased capacity of 440 gigawatts is more than what it takes to power Germany and Spain. Europe, for its part, added 58 new gigawatts.

“Particularly in Europe, it’s been really at breakneck speed of scaling up the deployment,” said Michael Taylor, senior analyst at IRENA.

According to Wood Mackenzie, the wind energy industry added enough generating capacity to power 80 million homes. Again, Red China added the most renewable capacity through wind. The behemoth country is on track to surpass its 1,200 megawatt/2030 target for wind and solar and will be five years ahead of schedule if planned projects become reality.

Although high interest rates, inflation and increased cost of building and materials in the wind energy sector created unwanted headwinds, that’s happening in all industries.

In the United States, the Inflation Reduction Act and its incentives played a critical role, too.

“We have the seen the impact of the Inflation Reduction Act in terms of fueling investments . . . more than 60 solar manufacturing facilities were announced over the past year,” said Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association.

Speaking of the Inflation Reduction Act, if the U.S. government can tackle the national debt with as much gusto as it subsidizes renewables, this nation would be healthier in more ways than one.