
Solar power, also referred to as solar electricity, harnesses sunlight to generate electricity through photovoltaics (PV) or concentrated solar power systems. PV panels utilize the photovoltaic effect to convert sunlight into electrical current, while concentrated solar power systems use lenses or mirrors to focus sunlight onto a hot spot, typically to power a steam turbine.
Initially used for small applications like calculators and remote homes, solar power has expanded significantly since the 1980s with the development of commercial concentrated solar power plants. As solar panel costs decrease, grid-connected solar power PV systems have experienced exponential growth, contributing to three-quarters of new generation capacity worldwide.
By 2023, solar power accounted for 5% of global electricity generation, a significant increase from 1% in 2015. With its affordability, utility-scale solar installations, alongside onshore wind, offer the lowest levelized cost of electricity in many regions. Rooftop installations comprised nearly half of solar power additions in 2022, highlighting the widespread adoption of solar energy.
To combat climate change effectively, a substantial expansion of low-carbon power sources like solar power is necessary. However, achieving this requires addressing challenges such as grid integration, policy, regulation, and financing, as noted by the International Energy Agency in 2022.