A new International Energy Agency report found that the current global manufacturing capacity for solar cells and modules could meet the sector’s target to realize a Net Zero emissions scenario by 2030, but these facilities are drastically underutilized — just 50% — as supply outpaces demand and countries’ ability to incorporate more solar energy into the grid.
The report also found that the global installed battery capacity rose to 2.5 terawatt hours, 3.5 times the current demand. If planned battery installments come to pass, then batteries could also meet 90% of their sector’s target for the Net Zero emissions scenario by 2030, the report found.
The uptick is being driven by rising global investment in clean technology, which includes solar, wind, batteries, electrolyzers (crucial for green hydrogen), and heat pumps. Investment grew by more than 70% to $200 billion in 2023 compared to 2022, the report found. But it also cautions that more climate-forward policies are needed to boost demand for clean energy.