Deployment of distributed solar PV is rising rapidly. In 2022, distributed PV; or small solar PV installations that generate electricity for residential, commercial, industrial and off-grid applications; represented 48 per cent of global solar PV capacity additions, and its annual growth was the highest in history according to the international Energy Agency (IEA) figures.
Annual growth of distributed PV is expected to be even stronger the next two years, according to the IEA’s latest Renewable Energy Market Update. In 2024, it is set to reach 140GW, an increase of more than 30 per cent compared with 2022 levels.
Australia has the world’s highest share of rooftop solar per capita, but Europe also added more than 23 GW of rooftop solar in 2022. Around 16GW of distributed PV is already operational in India, which has a target to achieve 500GW of installed capacity for electricity generated from non-fossil fuel-based technologies by 2030. In Brazil, distributed PV deployment has exceeded expectations, with 7.8GW added last year and close to 17GW of total capacity installed.
Looking forward, effective distributed PV deployment and integration at scale will require digitalised grids and digital tools. These innovations will alleviate the challenges of managing increasing distributed PV capacity while fostering greater system efficiency, but policy makers and regulators will need to leverage digitalisation in order to improve the management of growth in distributed PV and unlock its full potential in support of the clean energy transition.
Measures can include mandates to create utility-level, statewide or national registries of distributed PV systems, as seen in Australia, the UK and California in the US. The adoption of smart inverters can also be required, as in Australia, Italy and the US states of California, Hawaii and New Mexico, with Brazil and India discussing similar measures. Finally, mandates can support the deployment of smart meters for distributed PV installations and the creation of platforms for managing, sharing and analysing data.
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