Solar electricity is historically cheap

josh jackman
Written By
Published on 14 January 2021

Solar power is now “the cheapest source of electricity in history”, according to the International Energy Agency (IEA).

This will help renewable energy to overtake coal as the world’s biggest source of power by 2025, the IEA has predicted – faster than the organisation’s most optimistic estimate a year ago.

Coal, which is the dirtiest fossil fuel, will reportedly never recover from the drop in output it suffered during a year dominated by COVID-19.

In contrast, solar power output is set to grow by more than 650% by 2040.

the sun shines on solar panels

The IEA has dubbed solar the “the new king of electricity” thanks to its predicted growth, which is 43% higher than previously thought.

This is due to research that’s revealed solar power is 20% to 50% cheaper than past estimates showed, thanks to pro-renewable government policies and developing technologies.

Solar power stations are “consistently cheaper” than new coal or gas power plants in the majority of countries, the IEA has found.

Any company looking to build a coal-fired plant would pay 60% less to produce the same amount of solar power, according to banking giant ING, which has combined its research with the IEA’s reports.

The cost of producing solar power industrially is also 33% cheaper than gas, and around 25% less expensive than offshore wind.

The IEA has predicted that renewable energy will fulfil 80% of the world’s increased electricity consumption by 2030, with solar power setting a new record for increased output every year – and little wonder.

There is plenty of good news.

Low-carbon sources of energy – including solar, wind, nuclear, and hydropower – are set to provide 44% of the world’s energy in 2040, according to the IEA, compared to 19% in 2019.

That’s a massive 132% increase, which is wonderful news for the climate, especially as coal’s output is predicted to plummet to 10% – its lowest ebb since the Industrial Revolution.

Unfortunately, this is not expected to be enough to stop the climate from changing to a disastrous extent.

These welcome shifts in energy production would push the globe to reaching net-zero CO2 emissions in 2070 – a full two decades after the 2050 deadline for staying below 1.5°C.

A global average temperature rise of 1.5°C would result in widespread heatwaves, and would put 20-30% of species at risk of extinction, according to the United Nations’ Intergovernmental Panel on Climate Change.

Written by

josh jackman

Josh has written about and reported on eco-friendly home improvements and climate change for the past four years.

His data-driven work has featured on the front page of the Financial Times and in publications including The Independent, Telegraph, Times, Sun, Daily Express, and Fox News, earned him the position of resident expert in BT's smart home tech initiative, and been referenced in official United Nations and World Health Organisation documents.

He’s also been interviewed on BBC One's Rip-Off Britain, BBC Radio 4, and BBC Radio 5 Live as an expert on everything from renewable energy to government policy and space travel's carbon footprint, and regularly attends Grand Designs Live as a Green Living Expert, giving bespoke advice to members of the public about heat pumps and solar panels.

Josh has also used the journalistic skills he developed at The Jewish Chronicle and PinkNews to investigate and analyse every green government grant in existence, and examine the impact on the climate of cryptocurrency, Glastonbury Festival, and the World Cup.

You can get in touch with Josh via email.

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