Both state and federal incentives had a large influence on U.S. solar growth, said Daniel Bresette, president of the Environmental and Energy Study Institute, a non-profit education and policy organization.

Despite solar’s success in 2023, there are hurdles. There has been a shortage of transformers, Bresette said, while interest rates have risen.

In the U.S., solar manufacturing grew as well. “We have seen the impact of the Inflation Reduction Act in terms of fueling investments … more than 60 solar manufacturing facilities were announced over the past year,” said Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association.

CHALLENGES FOR WIND ENERGY

By the end of 2023, the world will have added enough wind energy to power nearly 80 million homes, making it a record year.

As with solar, most of the growth, or more than 58 gigawatts, was added in China, according to research from Wood Mackenzie. China is on track to surpass its ambitious 2030 target of 1,200 gigawatts of utility-scale solar and wind power capacity five years ahead of schedule if planned projects are all built, the Global Energy Monitor said.

China was one of the few growing markets this year for wind, the Global Wind Energy Council said. Faster permitting and other improvements in key markets such as Germany and India also helped add more wind energy. But installations were down in Europe by 6% year-over-year, Wood Mackenzie said.

Short-term challenges such as high inflation, rising interest rates and increased costs of building materials forced some ocean wind developers to renegotiate or even cancel project contracts, and some land-based wind developers to delay projects to 2024 or 2025.

The economic headwinds came at a difficult time for the nascent U.S. offshore wind industry as it tries to launch the nation’s first commercial-scale offshore wind farms. Construction began on two this year. Both aim to open early in 2024 and one of the sites is already sending electricity to the U.S. grid. Large offshore wind farms have been making electricity for three decades in Europe, and more recently in Asia.

After years of record growth, the industry group American Clean Power expects less land-based wind to be added in the United States by year’s end, about enough to power 2.7 million to 3 million homes. The group says developers are taking advantage of new tax credits passed last year in the Inflation Reduction Act, but it takes years to bring the projects online. There has been $383 billion in announced clean energy investments since passage of the IRA, it said.

“We’re talking about 2023 essentially as a lower performance year, but in the grand scheme of things, 8 to 9 gigawatts is still a number to get excited about. It’s a lot of new clean energy that’s being added to the grid,” said John Hensley, ACP’s vice president for research and analytics.

Globally the wind buildout was slower this year as well. The top three markets this year are still China, the United States and Germany for wind energy produced on land, and China, the United Kingdom and Germany for offshore.

The analysts are predicting that the global industry will rebound next year and make nearly 12% more wind energy available worldwide.

In June, the industry celebrated passing 1 terawatt of installed wind energy worldwide. It took more than 40 years to reach that milestone, but it could take less than seven years for the second terawatt, at the pace the industry is on now.

MASSIVE YEAR FOR BATTERIES

Amid an ongoing push to make transportation less damaging to the climate, the electric vehicle trend accelerated globally in 2023, with one in five cars sold this year expected to be electric, according to the International Energy Agency. That meant it also turned out to be another banner year for batteries.

More than $43.4 billion has been spent on battery manufacturing and battery recycling just in the U.S. this year, thanks largely to the Inflation Reduction Act, according to Atlas Public Policy. This puts the U.S. on a more level playing field with Europe, but still behind battery powerhouse China.

As for large battery factories, called gigafactories, the U.S. and Europe each had 38 in the works by late November, according to Benchmark Mineral Intelligence. But China had 295 in the works.

The industry continued to explore different ways of making batteries without depending so much on harmful materials, as well as ways of making components more sustainable, and the battery recycling industry made headway, experts said.