Crossing the tipping point: Solar and storage case study

The global energy landscape is undergoing a dramatic transformation. Over the last five years, solar photovoltaic (PV) technology has reached a tipping point, emerging as the most cost-effective source of new electricity generation. As we transition to a future dominated by renewable energy, solar power is poised to play a crucial role in decarbonising the global economy, reducing energy costs, and fostering sustainable development. Crossing the tipping point: Solar and storage case study, produced in partnership with the University of Exeter, EEIST, and the Bezos Earth Fund, provides a comprehensive overview of solar energy’s emerging dominance in the global energy mix.

Key Points

Solar energy is now cheaper than fossil fuels globally

Over the past five years, solar PV has become significantly cheaper than new coal and gas plants in key markets such as China, the US, India, and Germany. The levelised cost of electricity for solar is now 1.5 to 2.5 times lower than gas and 2 to 3 times cheaper than coal, making it the most cost-effective energy source.

Rapid shift to solar dominance by 2050

Solar PV is expected to dominate the global energy mix, reaching 50% of global electricity generation by 2050. The rapid shift to renewable energy, with solar leading the way, is the most cost-effective strategy to decarbonise power systems worldwide, driving economic growth and sustainability.

Falling solar costs

Solar costs have fallen by 80-90% every decade since the 1960s, driven by technological advancements and economies of scale. New solar power plus battery storage is expected to be half the cost of new coal power in most major economies by 2023.

Key countries are driving solar growth

Just five countries—China, the US, Japan, India, and Germany—account for 63% of global solar PV capacity. Their investments in solar technologies and policies such as feed-in tariffs and subsidies are lowering global solar costs and accelerating deployment in other countries. The continued expansion of solar infrastructure in these nations is expected to benefit global energy transitions.

Expanding the job market and cleaning the air

Accelerating solar PV and storage deployment boosts access to affordable electricity and reduces local air pollution. Being a leader in the transition can be good for jobs and industrial competitiveness. Solar energy is currently the fastest-growing source of new jobs in electricity generation sources.

Solar energy has reached a pivotal moment with costs plummeting to levels significantly lower than those of coal and gas. Solar PV is not only leading the charge in the transition to renewable energy but also proving to be the most economically viable solution for global decarbonisation. The Solar and storage case study details the benefits and opportunities of further investment in this technology globally.