Solar Energy Emerges as the World's Cheapest Power Source

A recent study from the Advanced Technology Institute (ATI) at the University of Surrey has declared solar energy the world's cheapest power source, with costs as low as £0.02 ($0.027) per kilowatt-hour in the sunniest regions. This significant finding positions solar energy ahead of other renewables, including wind, as well as traditional fossil fuels like coal and gas. The study highlights that the cost of lithium-ion batteries has decreased by 89% since 2010, making solar-plus-storage systems as cost-effective as gas power plants. These hybrid systems enhance solar's reliability by allowing energy storage and release as needed, thus balancing grid demand.

Solar and Battery Costs Plummet, Making Clean Energy Cheaper Than Gas and CoalEuronewsSolar Energy Now World’s Cheapest Source Of Power

The implications of this shift are profound. In the first half of 2025, renewable energy sources, led by solar, generated more electricity than coal for the first time in history, according to data from the energy think tank Ember. Solar power alone accounted for 83% of the increase in electricity demand, with solar generation growing by a record 31%. This surge enabled solar to become the primary source of electricity in the European Union in June 2025, contributing to 22% of the energy mix.

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Rob Stait, a representative from Alight, noted that solar's rapid scalability—developing a solar farm can take just a year compared to five years for wind and ten for nuclear—positions it as a key player in reducing Europe's reliance on volatile oil and gas markets, particularly in light of geopolitical tensions stemming from Russia's invasion of Ukraine.

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Despite these advancements, the integration of solar energy into existing electricity networks poses significant challenges. Dr. Ehsan Rezaee, a co-author of the study, emphasized the need for smart grids and artificial intelligence forecasting to stabilize power systems as renewable energy use increases. The study also calls for continued investment in next-generation solar technologies, such as perovskite solar cells, which could enhance energy output without expanding land use.

Solar and Battery Costs Plummet, Making Clean Energy Cheaper Than Gas and CoalSolar Energy Now World’s Cheapest Source Of PowerEuronews

While the momentum for solar energy is strong, there are dissenting views regarding the pace of the transition. Critics point to the challenges faced by developed nations like the United States and the European Union, where fossil fuel generation has increased due to sluggish growth in renewable energy output. The International Energy Agency (IEA) has revised its forecasts for renewable energy growth in the U.S., citing policy shifts under the Trump administration that favor fossil fuels over renewables.

BBC NewsRenewables generate more power than coal globally for first time on recordNewsweek

The findings of the University of Surrey study have been met with optimism from various stakeholders. Professor S. Ravi P. Silva remarked, “This technology is no longer a moonshot prospect but a foundational part of the resilient low-carbon energy future.” Meanwhile, Ember's analysis indicates that more than half of the world's economies have already surpassed their peak fossil fuel usage, suggesting a significant shift in global energy dynamics.

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• “Simply put, this technology is no longer a moonshot prospect, but a foundational part of the resilient low carbon energy future that we all want to bring to reality.” — Professor S. Ravi P. Silva, Director, Advanced Technology Institute, University of Surrey

Solar Energy Now World’s Cheapest Source Of Power

• “For the first time ever, we saw renewables overtaking coal generation globally,” — Malgorzata Wiatros-Motyka, Senior Electricity Analyst, Ember

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• “The fact that renewables have overtaken coal for the first time marks a historic shift.” — Sonia Dunlop, Chief Executive, Global Solar Council

Renewables generate more power than coal globally for first time on record

• “Connecting the growing levels of solar power to electricity networks is now one of the biggest challenges.” — Dr. Ehsan Rezaee, Research Fellow, University of Surrey

Solar Energy Now World’s Cheapest Source Of Power

As the world moves towards a cleaner energy future, the focus will be on addressing the integration challenges of solar energy and enhancing policy support to sustain growth. Continued investment in solar technology and infrastructure will be crucial to maintaining momentum in the transition away from fossil fuels.

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