Daily Times

As the world grapples with the pressing issues of climate change, energy security, and sustainable development, solar energy has become an indispensable part of the global energy landscape. Solar policy, which governs the development and deployment of solar energy, is crucial for promoting the widespread adoption of solar energy, reducing our reliance on fossil fuels, and driving economic growth and sustainability.

?For centuries, humans have harnessed the sun’s boundless energy, but the modern era of solar energy began to unfold in the 1950s, as photovoltaic technology (PVT) transformed its potential into practical reality. Since its inception, solar energy has evolved from a fledgling industry into a global powerhouse, fueled by technological leaps, economies of scale, and enlightened policy frameworks that are reshaping the world’s energy landscape.

Today, solar energy has emerged as one of the world’s fastest-growing energy sources, with solar PV capacity surging from 15 GW in 2008 to an impressive 720 GW in 2022 – a growth trajectory that’s redefining the global energy landscape. The solar industry is at a critical juncture, with many countries setting ambitious renewable energy targets and investing heavily in solar energy.

Despite its growth, the solar industry faces several challenges, including intermittency, cost, policy and regulation, and grid integration. The unpredictability of weather patterns poses a recurring challenge for solar energy, as shifting clouds and storms significantly impact its output, posing challenges to its reliability and seamless grid integration. The plummeting cost of solar energy is a welcome trend, but high upfront costs can be a significant obstacle for some consumers, particularly those in developing nations where financial resources are scarce and energy poverty persists.

The cost to install solar had dropped by nearly 40% over the last decade, leading the industry to expand into new markets.

The lack of clarity and consistency in solar policy and regulation can create uncertainty, deterring investment and erecting barriers that stifle innovation and growth. Solar energy’s ascent to prominence hinges on its ability to integrate seamlessly with the grid, yielding a stable, reliable, and efficient energy supply that underpins our increasingly energy-dependent lives.

According to the International Energy Agency (IEA), solar energy accounted for 3.3% of global electricity generation in 2020, up from 0.2% in 2010. The IEA also reports that global solar PV capacity reached 720 GW in 2022, with China, the United States, and Japan leading the way. The reports reveal that global investment in solar energy totalled $133 billion in 2020, a 10% increase from 2019. The solar industry supported over 3.4 million jobs globally in 2020, a 10% increase from 2019. Furthermore, the 2024 Berkeley Lab’s “Tracking the Sun” report reveals that almost 80% of all distributed PV systems installed nationally through 2023. According to statistics from The Solar Energy Industries Association (SEIA), as of 2023, nearly 280,000 Americans work in the solar industry at more than 10,000 companies in every U.S. state. In 2024, the solar industry generated over $70 billion of private investment in the American economy. The cost to install solar had dropped by nearly 40% over the last decade, leading the industry to expand into new markets.

As per the 2022 reports by the U.S. Energy Information Administration (EIA), 2.7 trillion kilowatt-hours of renewable energy were produced.

Governments, industries, and civil society organizations have taken several steps to promote the adoption of solar energy, including renewable energy targets, tax incentives and subsidies, grid integration policies, and research and development. Many countries, including Estonia, New Zealand, Germany, Denmark, Austria, Spain, China, and Pakistan, have set ambitious renewable energy targets, with solar energy playing a key role.

Governments have offered tax incentives and subsidies to encourage the adoption of solar energy. Policies such as net metering and grid connection standards have been implemented by governments and utilities to promote grid integration. Additionally, governments, including the United States, Germany, India, China, and Australia, industries, including Apple, Google, Tesla, Volkswagen, and Total, and research institutions, including Stanford University, Massachusetts Institute of Technology (MIT), University of California, Berkeley, and National Renewable Energy Laboratory (NREL), have invested in research and development to improve solar energy technologies and reduce costs.

Furthermore, To ensure a sustainable energy future, steps such as stable and predictable policies, grid modernization, cost reductions, and public awareness and education are required. Governments must establish stable and predictable policies to promote the adoption of solar energy. Utilities and governments must invest in grid modernization to ensure efficient grid integration of solar energy. Industries and governments must continue to invest in research and development to reduce solar energy costs and improve efficiency. Governments and civil society organizations must promote public awareness and education about the benefits of solar energy.

A well-designed solar policy framework is crucial for promoting solar energy adoption and ensuring a sustainable future. Despite progress, ongoing challenges related to policy, certainty, grid integration, and cost require sustained attention. A coordinated effort from governments, industries, and civil society organizations is vital to establish a supportive policy framework, invest in grid modernization, reduce costs, and promote public awareness and education. Through collective action, we can harness the power of the sun to create a sustainable energy future for all.

The writer is a freelance columnist.