Rosie Carrow
Content writer
In three charts: the explosive investment in solar
The phenomenon of solar energy was first observed over a century ago, but serious investment in installations is only just beginning
22/05/2019
Rosie Carrow
Content writer
Photovoltaic energy was first observed in 1839 by French physicist Edmond Becquerel. It took another century for solar cells to become a practical means of harnessing energy: in 1958 the US satellite Vanguard 1 became the first orbital satellite to use photovoltaic cells to power radio and other equipment.
Today, billions of dollars are being poured into solar energy generation and the development of associated technologies. India and China, with their large land masses, huge populations and growing need for energy, are among the biggest investors.
INVESTMENT IN SOLAR IS ROCKETING…
SOURCE: UNEP, BLOOMBERG NEW ENERGY FINANCE
The second chart, below, shows the astonishing efficiencies being achieved as the cost of solar energy production plummets.
…AND THE COST OF INSTALLATIONS IS FALLING FAST…
SOURCE: BLOOMBERG, EARTH POLICY INSTITUTE
Global solar power capacity is expected to triple by 2022, with China accounting for 40% of the world’s new solar panels – but at the moment it accounts for a tiny proportion of energy consumption. As the third chart shows, solar power made up just 0.3% of the world’s power sources in 2017 – a long way behind other renewable energy sources such as hydro.
…BUT SOLAR REMAINS A FRACTION OF TOTAL ENERGY USE
SOURCE: VACLAV SMIL AND BP STATISTICAL REVIEW OF WORLD ENERGY
The Sungrow Huainan Solar Farm in China, pictured, top, is the world’s largest floating solar array.
Author
This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.
This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.
All data contained within this document is sourced from Cazenove Capital unless otherwise stated.