Solar Power – Could It Be the Next Big Thing?
By 2030, solar power could be the biggest source of electrical power worldwide, with lower costs than its competitor energy sources, making it more accessible. However, is solar the next big thing?
A Backstory on Solar
Solar panels, now commonly seen on rooftops and in large-scale installations, begin as thin silicon wafers. These wafers, measuring approximately 182 mm long and just 0.2 mm thick, have wires attached to the front and an electrical contact on the back. When exposed to light, the silicon generates an electric voltage, and an additional circuit converts this voltage into usable power. Encasing these silicon components between sheets of glass creates the familiar solar panels used today.
A Bright Future
Currently, solar panels provide the world with approximately 6% of its electricity,1 with installed solar capacity doubling every three years. Not only is this due to the resources needed to produce and install solar panels being abundant, but they are cheap to run.
Increasing demand boosts production which lowers costs, meaning solar power can offer cheaper energy. This cheaper energy allows more people to light their homes, help with the purification of water, cools/heats offices and homes, and powers industrial processes, including AI. Additionally, solar panel subsidies have increased demand, thus reducing prices.
Many people argue that wind power is comparable, however, there are fundamental benefits of solar over wind. Firstly, solar power is much cheaper than wind; with turbines needing to be bigger and taller to increase efficiency. Additionally, solar panels are unobtrusive compared to their wind counterpart, sitting unobtrusively on rooftops or deserts.
One of the main benefits of solar power is its impact – or lack thereof – on the environment. Emitting zero emissions and using little resources, solar panels could slow climate change.
Solar Setbacks
However, due to the nature of solar power, it needs to be accompanied with efficient storage solution. Consumers need to be able to use power at night, a time when solar generation is at its lowest. Many electricity grids work on a ‘merit order’, meaning that during times of high energy generation, the price of electricity could fall to zero.
This can be seen in regions such as the Mediterranean, and although it is beneficial for daytime energy, profits for further solar investment are limited in these markets. Efficient storage is required to tackle both issues, and luckily, batteries can be mass produced and could in the future be the largest source of power on the grid. Using batteries allows energy generated in the daytime to be sold back during the nighttime, also helping to decrease costs passed on to consumers.
Another setback is the source of solar panels, many of which are manufactured in China. In 2023, Chinese companies manufactured 93% of all the world’s polysilicon intended for solar cells. This means that the solar industry effectively relies on a single country for production. Although China is set up with enough capacity to continue delivering at its current rate, it could lead to future issues.
From a wider perspective, getting solar power to developing countries is also a difficult task. Solar panels require financing upfront, with many stakeholders hesitant to invest – with the worry that contracts won’t be honoured, and the impact that political instability could have on their investments.
Solar Power Outlook
Although solar power may have its drawbacks, it could be the solution to the energy and climate crisis. With solar power being on track to generate more electricity than nuclear plants in 2026, and gas fired power plants by 2030, it seems that the outlook is bright. Not only will solar allow energy to be available at a cheaper rate, but it could be transformative for third world countries to light and heat their homes, benefitting from energy that they have not yet had accessibility to.
1 Economist
