Solar tsunami: How the world did in 2 years what took 68 — terawatts of power unleashed

Many dismiss solar power as aspirational, a nice-to-have thing, but never a real-world solution towards energy security.

Yet in renewable energy today, solar power is accelerating at an unprecedented pace. 

Consider this: The first commercial solar cells were developed by Bell Labs in 1954. 

Then, it took the world 68 years to reach 1 terawatt (TW) of installed solar capacity — starting from the mid-20th century (1954-2022).

Astonishingly, it has taken only 2 years to reach the next TW (2022-2024), to hit 2 TW milestone, according to estimates calculated by the Global Solar Council and SolarPower Europe.

This means the global solar industry, now led by China, is not just growing; it’s booming with explosive speed, according to the Global Solar Council. 

The milestone highlights how solar energy is becoming the backbone of the global energy system. 

“Notably, 2 TW of solar is equivalent to the total installed electricity capacity of India, the USA and UK combined and could power an estimated one billion homes, based on a global average household energy consumption of 3,500 kWh per year and a 20% capacity factor,” the council reported.

But what does this mean for the average home or business? 

Is solar power truly a reliable source, and how does fierce competition shape its market?

Real power source for homes and businesses

Solar power is now firmly grounded as a dependable energy source. 

Beyond sheer capacity, solar technology has become dramatically more affordable due to advances in manufacturing, economies of scale, and smarter installation methods, making it a viable option for residential and commercial users alike.

However, solar isn’t without its quirks — its intermittent nature requires coupling with energy storage solutions or grid infrastructure to ensure round-the-clock reliability. 

Despite this, regions like California and South Australia are already achieving renewables penetration levels beyond 70%, showcasing that solar, paired with batteries and other renewables, can power modern economies effectively, as per Bio-Based Press.

Solar is where capitalism manifests its “invisible hand”, a metaphor used by Adam Smith to describe how individual self-interest in a free market, through competition and voluntary exchange, unintentionally benefits society by driving resources to their most efficient and valued uses, without the need for centralised control.

The race to dominate solar manufacturing and deployment has led to an era of fierce competition. 

Studies reveal that increased competition among solar providers has driven prices down substantially, benefitting consumers with more affordable equipment and services.

Competition also fuels innovation, speeding the arrival of new technologies that boost efficiency, durability, and ease of use, further accelerating adoption, according to a Yale study.

However, this intense competition can squeeze profit margins, causing some producers to consolidate or exit the market. 

Nonetheless, the overall effect is positive: lower prices, greater accessibility, and a healthier, more dynamic solar industry that can push global renewable targets faster.

Utility-scale solar today is 84% cheaper than it was 16 years ago.

Even paired with battery storage, solar and wind remains cost competitive compared with natural gas, according to global financial advisory and asset management firm Lazard..

The US Department of Energy, however, sent out a tweet on X on September 6, stating: “Wind and solar energy infrastructure is essentially worthless when it is dark outside, and the wind is not blowing.”

Still, the fact remains that global solar costs fell 21% in 2024.

Moreover, solar, wind and battery costs are expected to fall 2%-11% this year. Bloomberg NEF reckons that unsubsidised costs will fall 22%-49% by 2035. Battery costs, too are down 49%, thus turbocharging solar & wind.

The Global Solar Council notes that solar PV capacity has doubled from 1 TW to 2 TW in just two years, and expects it to exceed 7 TW by 2030 — accounting for 65% of needed renewable capacity to meet global climate goals. Their analysis underscores solar’s scalability, affordability, and central role in the future energy mix.

RethinkX’s forecast highlights that the combination of solar, wind, and batteries is already capable of reliably powering large regions (like California hitting 86.4% solar peak demand share). 

Battery storage advancements are essential to compensate for solar and wind variability, promoting grid stability and enabling near-100% renewables penetration in certain areas.

A field experiment in solar markets showed that increasing the number of competitors results in lower prices and higher adoption rates for residential solar panels. 

This dynamic pricing and demand response at competitive equilibrium are vital in expanding solar use for homes and businesses, enhancing greenhouse gas reductions.

The rapid ascent from 1 TW to 2 TW in global solar capacity marks a pivotal turning point in clean energy. Solar power, complemented by wind and innovative battery storage, is not just a niche technology — it’s becoming the backbone for a clean, sustainable energy future. 

Fierce global competition further accelerates innovation and cost reduction, driving mass adoption for homes and businesses worldwide. This triumvirate of solar, wind, and energy storage is poised to fundamentally reshape how we generate and consume power for decades to come.