Lower costs have spurred an increase in solar PV installments. According to theRenewables 2014 Global Status Report, a record of more than 39 gigawatt (GW) of solar PV capacity was added in 2013, which brings total (peak) capacity worldwide to 139 GW at the end of 2013. While this is not even enough to generate 1% of global electricity demand, the growth is impressive. Almost half of all PV capacity in operation today was added in the past two years (2012-2013). In 2014, an estimated 45 GW was added, bringing the total to 184 GW.
Less than 10 years ago, almost all solar panels were produced in Europe, Japan, and the USA. In 2013, Asia accounted for 87% of global production (up from 85% in 2012), with China producing 67% of the world total (62% in 2012). Europe’s share continued to fall, to 9% in 2013 (11% in 2012), while Japan’s share remained at 5% and the US share was only 2.6%.
Compared to Europe, Japan and the USA, the electric grid in China is about twice as carbon-intensive and about 50% less energy efficient. Because the manufacture of solar PV cells relies heavily on the use of electricity (for more than 95%), this means that in spite of the lower prices and the increasing efficiency, the production of solar cells has become more energy-intensive, resulting in longer energy payback times and higher greenhouse gas emissions.