'Solar demand readied to soar in 2023'

• Bloomberg Intelligence sees growth in PV demand surpassing 20% in 2023-25 with revenues to exceed $220bn.

Solar is likely to be fastest growing energy sub section in 2023 with demand set to increase 20-30%, according to Bloomberg Intelligence.

Bloomberg Intelligence sees growth in solar demand surpassing 20% in 2023-25 with industry-wide revenue for the companies in BI's global solar theme basket on track to go beyond $220bn in 2023.

Bloomberg Intelligence's Global Solar Energy 2023 Outlook discovered that global solar demand rose regarding 40% in 2022 with industry revenues raising about 50%.

Such fast top line growth could be one of the aspects that helped buoy solar share prices this year relative to the total market.

While solar shares have actually surpassed the wider market so far this year, Bloomberg Intelligence discovered that many solar shares are still well below their record highs in the first quarter of 2021.

This adheres to the International Energy Agency revealing it expects solar energy to surpass coal power by 2027 as the energy crisis as well as war in Ukraine drives a shift to renewables.

Rob Barnett, Bloomberg Intelligence Senior Analyst (Clean Energy), stated: "The growth of solar adheres to a record 2022, during which global solar capacity enhancements increased concerning 47%.

" Best in class peers such as Enphase or First Solar might see their sales growth go beyond 30% in 2023, and also amidst such rapid line growth, our company believe profitability metrics are poised to enhance based on an easing of input costs and supply chain restraints.".

Bloomberg Intelligence mentioned dual number growth is fuelled by beneficial economics: a new solar system's levelised price of electrical power (the standard cost of an electron created by a particular power plant over the life of the asset) is about $40 a megawatt hour, about in line with a new wind plant as well as over 50% less expensive vs a new coal one.

Unlike nuclear power, the price of installing solar is most likely to get more affordable in the future as efficiencies enhance as well as making expands.

European policy assistance for solar is also strong with the European Commission's REPowerEU plan aiming to double the installed capacity of solar energy to more than 320GW by 2025, which may lift consensus sales estimates for 2023-25.

By 2030, the EU is aiming for 600GW of installed solar capacity, a sign that sales energy could be preserved through the end of this decade.