A report released earlier this month by the International Renewable Energy Agency (IRENA) says that the amount of solar energy generated around the world could increase from its current level of 2% to 13% by 2030.

Letting in the Light: How Solar Photovoltaics Will Revolutionize the Electricity System finds the solar industry is poised for massive expansion, driven primarily by cost reductions. IRENA estimates that solar PV capacity could reach between 1,760 GW and 2,500 GW by 2030, up from current installed capacity of 227 GW.

“Recent analysis from IRENA finds that cost reductions for solar and wind will continue into the future, with further declines of up to 59% possible for solar PV in the next 10 years,” said Adnan Amin, director general at IRENA. “This comprehensive overview of the solar industry finds that these cost reductions, in combination with other enabling factors, can create a dramatic expansion of solar power globally. The renewable energy transition is well underway, with solar playing a central role.”

Letting in the Light indicates that the cost of solar electricity is already competitive with conventional energy in many markets. For example, solar ranges from $0.05/kWh to $0.10/kWh in Europe, China, India, South Africa and the United States.

In Canada, the cost of solar is still higher than traditional energy. But a recent competitive procurement in Ontario demonstrated that prices are coming down with prices averaging approximately $0.15/kWh.

Investment in solar also continues to increase dramatically. The IRENA report says that more than half of all spending in renewable energy is now made is solar. Globally, solar investment topped US$159 billion (US$67 billion for rooftop deployments and US$92 billion in utility scale systems).

“World electricity demand is expected to grow by more than 50 per cent by 2030, mostly in developing and emerging economies. To meet this demand while also realising global development and sustainability goals, governments must implement policies that enable solar to achieve its full potential,” added Amin.

Reaching a 13% share of global electricity by 2030 will require average annual capacity additions to more than double for the next 14 years.

Letting in the Light highlights five recommendations that can help achieve this increase including:

• updated policies based on the latest innovations
• government support of continued research and development activities
• creation of a global standards framework
• market structure changes
• the adoption of enabling technologies like smart grids and storage