Solar energy leads the global energy transition as the costs dive to register lows

Solar energy leads the global energy transition as the costs dive to register lows

Solar energy has become the world’s most affordable power source, with costs in the sunny regions now as low as pounds 0.02 per kilowatt hour – cheaper than electricity of coal, gas or wind, according to new research by the Advanced Technology Institute (ATI) from the University of Surrey.

Published in energy and environmental materials, the study identifies solar photovoltaic (PV) systems as the primary engine of the global clean energy transition. “Even here in the UK, a country that is 50 degrees north of the equator, Solar is the cheapest option for large-scale energy generation,” said Professor Ravi Silva, ATI director and studies co-author. “Worldwide, the installed solar capacity surpassed 1.5 Terawatt in 2024 – twice that of 2020 and enough to provide hundreds of millions of houses with electricity.”

The researchers report that the lithium-ion battery costs have fallen by almost 90% since 2010, so that configurations of Zonne-Plus storage are competitive with natural gas plants. These hybrid systems can be stored and released if necessary, which creates excessive solar energy, which creates a passable and grid-balancing energy source.

However, integrating enormous amounts of solar energy into existing grids is new challenges. “Connecting the growth levels of solar energy with electricity networks is now one of the biggest challenges,” said Dr. Ehsan Rezaee, co-author of ATI. “Smart schedules, prediction of artificial intelligence and stronger regional mutual connections will be vital to keep power systems stable as the use of renewable energy consumption rises.”

Professor Silva added that combining storage with Smart Grid Advances Solar has made “reliable, affordable and clean on a scale”. He emphasized that new materials such as Perovskiet solar cells could increase energy production to 50% without expanding land use. Nevertheless, the ongoing policy obligation remains essential, with initiatives such as the American Inflation Reduction Act, the EU Repower EU and the production of India production that shows how coordinated policy can feed rapid innovation and implementation.

Research report:Solar energy in 2025: global implementation, cost trends and the role of energy storage in enabling a resilient smart energy infrastructure