In recent years, the push for sustainable, alternative energy sources has increased, with more and more domestic, commercial and industrial consumers opting for a more eco-friendly offering. The rising demand for natural, renewable energy has become one of the most topical issues in the industry, and with new data suggesting solar energy will overtake its competitors by 2027, it’s likely we’ll be looking to the sun for the solution.
Emerging statistics from the International Energy Agency have begun to highlight the factors impacting the global energy demand, compiling data from different countries, sectors and industries. They predict that solar energy will not only overtake gas as a leading source of energy, but also coal and fossil fuels within the next four years, taking an estimated 60% share of the energy generation and supply around the world.
How has solar energy risen in popularity?
Just ten years ago, solar energy was recognised to have one of the smallest shares of generation capacity of all major power sources at the time. Now, with numerous factors assisting its rise in popularity, it’s set to have the biggest.
Solar energy offers a lower-cost solution to the rising energy prices consumers have faced over the past few years, with an overall cost decrease of 90% per megawatt hourly usage since 2009 (source: Lazard). Suppliers have found efficient and innovative ways to drive down the costs of generation, installation and maintenance, as well as usage, making it accessible and affordable for the common consumer. By comparison, alternative energy sources such as wind, coal and gas could be costing the consumer up to 3x the price per hourly usage.
Conversely, the invasion of Ukraine in early 2022 has also had an impact on the rising demand for solar energy according to Ember think tank analyst, Dave Jones. Having weaponised and restricted the usage of the existing energy sources, such as oil and gas, for both Ukraine and its allies, the ongoing conflict has inadvertently driven consumers towards sustainable alternatives - with solar emerging on top. One of the core benefits of solar energy is its security and accessibility, no matter the conditions on the ground. Having recognised this, energy security is becoming a significant factor in the generation and distribution of energy across Europe, China and the USA, with more and more nations prioritising solar and wind as their leading sources.
How is solar’s growth predicted to happen in 2027?
With the invasion of Ukraine marking an important turning point in the transition towards renewable energy, analysts are predicting that more world leaders will begin isolating solar and wind power as their sole forms of energy. Additionally, as the overall costs for the generation and usage of solar decrease, there’s set to be a record-breaking number of solar installations within the next five years.
According to Heymi Bahar, a senior analyst at the IEA, “Solar accounts for almost 60% of every power installation that will be built in the coming five years.” Bahar predicts that the exponential growth and acceleration of solar will establish it firmly as the ‘King of Global Electricity Markets’ within a short span of time.
Solar has almost unlimited potential and can offer clean, sustainable energy - allowing many major nations, companies and industries to hit their green targets even sooner than expected. The milestones that solar is expected to hit, invite significant progress in decarbonisation efforts and sustainable change around the world. Solar is not only going to be the popular choice but a smart, dependable and stable alternative too.
How Clean Energy Capital can connect your company to leading solar energy sources?
At Clean Energy Capital, we provide end-to-end renewable energy solutions to businesses and landowners across the UK. Our priority is an affordable, decentralised energy solution that works for your bespoke needs and we work tirelessly to support our clients through every step of their process. Whether we’re supplying solar energy power agreements to industrial Large Power Users or offering biodiversity-friendly energy alternatives for local landowners, we offer our insight, expertise and experience to deliver a renewable service that works for you.
‘With solar set to become the most popular alternative energy source in 2027, Clean Energy Capital is already ahead of the curve. As the majority of our clients consume energy during daylight hours, solar continues to be an optimal solution, driving its popularity and growth.’
Sam Dight, Chief Commercial Officer at Clean Energy Capital.