Two years ago, when we discussed the future of solar energy in 2021, the world was still facing the aftereffects of the Covid-19 pandemic. Today, when we are discussing the future of solar energy in 2023 and beyond, it still looks bright. Yes, today the problems we face are quite big as these are economical challenges. Our reserves have almost reached their end. Our economy is crippled and we are not getting any bailout packages soon. The future of solar energy yet looks bright.
Future of Solar Energy Looks Bright in 2023
In fact, the current economic crises in Pakistan and the global recession will make it even brighter for solar energy. When we say it, we mean that the adoption of solar energy, and innovation in solar tech will continue to soar. We will discuss various factors that make us believe, that the future of solar energy will continue to shine despite these problems.
Increased Adoption Of Solar Energy
Geopolitical unrest and trade uncertainty have temporarily slowed solar capacity growth, but it will nevertheless increase over the coming years. By 2024, the world will generate more solar electricity than a terawatt.
As grid operators struggle to keep up with peak energy consumption hours, the demand for energy is also increasing exponentially, leading to increased outages and general grid instability. Much greater power unpredictability will result from the growth in EV charging and infrastructures that were not designed to handle the high electricity usage that is only going to continue to rise. And we anticipate that demand for residential solar energy will skyrocket as households move away from fossil fuels and towards complete electrification in global markets as well as in Pakistan. What homeowners actually want is peace of mind in this volatile market. They are more committed than ever to taking charge of their energy requirements, usage, and expenses. They’re turning more and more to solar energy to do this efficiently and economically.
For Large-Scale Industrial And Utility Projects
There has been a trend toward the development of large-scale solar projects, such as solar farms, which are able to generate significant amounts of electricity. These projects are often developed by utility companies and are connected to the grid. All over the globe, these projects will be on the rise. Comparatively, in Pakistan, there will be a halt to the planning and implementation of such projects due to the impeding economic crises. As far as the private industries as concerned, they will continue to switch to solar. This is because all of them want to get rid of the high electricity bills and take control of their energy production. Instead of relying on grid power or expensive generator power, solar is a cheap and effective option to run the mills. Many businesses belonging to diverse commercial sectors are turning to solar energy as a way to reduce their energy costs and their carbon footprint.
Better Storage Options Will Be Available
The demand for efficient, affordable methods to store the excess energy produced by solar panels is rising along with the utilization of solar energy. This pattern is anticipated to persist as energy storage technology advances and becomes more broadly accessible. As we have observed over the previous two years, when lithium-ion battery costs are high, a need for alternative (or “non-lithium”) solutions or at the very least a deeper comprehension of use cases and innovative techniques to extract more value from lithium batteries will develop. The framework has, in our opinion, been laid, and the competition for distinctive stationary storage solutions has started. The following years will not only see increased adoption of solar battery storage solutions, but we will also see efforts in the development of new and improved technology.
Role Of Solar Energy in Esg
Solar will see a boom in 2023 as it continues to advance as the most economically viable renewable energy technology. As supply chain problems disappear, availability will increase. Corporations will considerably push the boundaries of what we previously believed was achievable by mixing solutions from several disciplines to reach their net zero goals, driven by ESG (environmental, social, and governance) commitments and backed by cross-border policies and incentives. They are inspired by the knowledge that sustainability is a motivator for business success in terms of cost reduction and even revenue prospects.
Specifically in Pakistan, the role of solar will particularly be focused on achieving sustainability goals. As industries realize that in order to acquire business from international giants, they need to fulfill certain sustainability requirements. We will see that achieving these sustainability goals will also act as a motivator in addition to reduced electricity costs for these local industrialists. As a result, we expect a solar boom in the industrial sector of Pakistan.
The Increase in Efficiency of Solar Panels
The efficiency of the solar panels determines the amount of electricity generated from the total solar energy they receive. There was a time when technologies like polycrystalline solar panels could only be about 16% to 17% efficient. Then came the era of monocrystalline solar panels which took it up to 19%. With the current technologies such as Half-cut monocrystalline PERC cells, the efficiency levels have almost reached 23% which is massive.
In the coming years, we can expect it to grow from 25% to 30%. LONGi even currently claim to have achieved 25% efficiency with their latest release of solar panel technology. As the efficiency of the panels will increase, we can expect greater adoption of solar panels.
The Decrease in Solar Cost
There is no doubt that during the past ten years, the cost of solar energy products has decreased. Solar products continue to become more affordable as new technological advancements promise to increase their efficiency, especially in sunny regions where they have recently dropped to their lowest prices. Given that solar energy is readily available and environmentally friendly, it is possible that by 2030 solar energy may dominate the world’s energy mix for power generation. At the speed at which the solar sector is growing, solar energy will soon surpass petroleum goods in terms of efficiency, which will have a favorable impact on the environment and the climate. Pakistan will, however, see an opposite trend due to inflation and our economic crises. It is expected that with the devaluation of the rupee, we will see an increase in the prices of solar products.
The Decreasing Dependency on Fossil Fuels
Since the Industrial Revolution, people have relied on fossil fuels to provide their energy, and ever since they discovered how to make fire, they have used combustibles to do it. The ecology has suffered greatly due to centuries of disregard and unrestrained usage of these fossil fuels. The issue has reached its worst point today, and if we don’t take care of the environment, it will only get worse. Animals on land and at sea have suffered greatly as a result of human activities including deforestation, pollution, and GHG emissions. As was already indicated, if nothing is done, the threat to human survival will grow as a result of the state of the environment.
Growing Role in Transportation
The two industries that are growing the fastest right now are definitely energy transformation and e-mobility. The electrification of mass-produced vehicles, such as passenger cars and light commercial vehicles, has been the automotive industry’s main priority in recent years. The issue now is how quickly electrification will take hold in the transportation sector rather than if it will happen at all. The next stage in this expansion will be to offer comprehensive solutions to businesses and consumers, ensuring that e-mobility is scalable and expanding the target market to include people with unique needs.
Just selling electric cars won’t be enough anymore. It is common knowledge that the grid’s electricity for charging is not always as environmentally friendly as we would like, and those expenses have increased significantly since 2022. Customers want to purchase not only the vehicle but also a more affordable, greener charging option. We expect that these problems will be solved in the coming years as the problem is not only becoming obvious but is getting a lot of attention as well.
There are several indicators that point to further growth for solar energy in the years to come. For instance, the price of solar panels has been dropping quickly recently, making them a more affordable source of energy. Technology advancements have also made it possible to create solar panels that are more efficient, which means they can produce more electricity from the same quantity of sunlight.
At the national and international levels, there are also a number of efforts and programs in place that aim to encourage the use of solar energy. For instance, to promote the use of solar energy, many nations have set renewable energy objectives, and some have put laws in place like feed-in tariffs or renewable portfolio standards. In general, it appears likely that solar energy will keep expanding in the years to come, propelled by technology advancements, falling costs, and encouraging policies and programs. The precise rate of development, however, will rely on a number of variables and is challenging to forecast with accuracy.