SOLAR POWER TAKES THE LEAD AS THE CHEAPEST ENERGY SOURCE WORLDWIDE
Solar energy has now claimed the title of the world’s cheapest source of electricity, with costs falling to as little as 2p per unit in the sunniest regions, according to groundbreaking research from the University of Surrey. The study, published in Energy and Environmental Materials by the university’s Advanced Technology Institute (ATI), reveals that solar photovoltaic (PV) technology is not only affordable but also rapidly becoming the driving force behind the global shift toward clean and renewable energy. As countries around the world race to reduce carbon emissions and combat climate change, the plummeting cost of solar power is positioning it at the forefront of a sustainable energy revolution, making green energy accessible on an unprecedented scale.
The study also underscores a dramatic drop in the cost of lithium-ion batteries, which have fallen by 89% since 2010. This steep decline has made hybrid solar-and-storage systems increasingly competitive, bringing their overall costs on par with conventional gas-fired power plants. By pairing solar panels with energy storage, these systems can store excess electricity generated during sunny periods and release it when demand peaks, enhancing reliability and supporting grid stability. Yet, researchers caution that as solar power continues to expand, integrating these growing volumes into existing energy networks presents technical and logistical challenges that must be addressed to fully realise a clean, resilient energy future.
The Renewable Energy Institute is delighted to see solar energy emerge as the world’s cheapest source of electricity, with the study highlighting that solar PV technology is not only highly affordable but also rapidly becoming a key driver of the global transition to clean and renewable energy. Through our accredited training courses, we actively support this energy transition, providing the vital skills and knowledge needed to sustain the continued growth of the renewable energy sector.
RENEWABLES OFFICIALLY OVERTAKE COAL AS LARGEST SOURCE OF ELECTRICITY
A growth in solar and wind energy generation in 2025 was able to cover additional electricity demand, even as requirements grow quickly due to electrification and use of data centres. Global electricity demand was up by around 2.6% in the first half of 2025. However, in response, solar power generation is now up approximately 33% on last year, and wind power up by 7%. A slight decrease in coal and gas use has even been reported as a consequence; in China a 2% reduction of fossil fuel generation has been recorded. In India, they used 3% less coal and 34% less gas.
However, while renewable energy has overtaken coal overall, this does vary from country to country. Evidence suggests the US and EU have in fact increased use of fossil fuels to generate electricity, due to issues with growing demand, intermittency and balancing supply. In more positive news, lower-income countries across the world are simultaneously experiencing a boom in renewables, helped by falling costs. For example, solar panel imports in Africa are up 60% year on year, with both small and large nations benefitting.
This turning point marks an exciting road ahead for the renewables sector, and the IEA now believes that renewables could double by the end of the 2020s. As we move towards a future powered by clean energy, the Renewable Energy Institute continues its mission to promote best-practice and knowledge sharing, while working to close the green skills gap.