Solar is likely to be fastest growing energy sub segment 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 exceed $220bn in 2023.
Bloomberg Intelligence’s Global Solar Energy 2023 Outlook found that global solar demand rose about 40% in 2022 with industry revenues increasing about 50%.
Such fast top line growth could be one of the factors that helped buoy solar share prices this year relative to the overall market.
While solar shares have outperformed the broader market so far this year, Bloomberg Intelligence found that most solar shares are still well below their record highs in the first quarter of 2021.
This follows the International Energy Agency announcing it expects solar energy to surpass coal power by 2027 as the energy crisis and war in Ukraine drives a shift to renewables.
Unlike nuclear power, the cost of installing solar is likely to get cheaper in the future as efficiencies improve and manufacturing expands.