Solar Power Becomes the World’s Cheapest Energy Source

SNN – Solar energy has officially emerged as the cheapest source of electricity worldwide, with costs dropping to as low as 2 pence per unit in some of the sunniest regions, according to new research.

The study, conducted by the University of Surrey and published in Energy and Environmental Materials, highlights how solar photovoltaic (PV) technology is rapidly transforming the global energy landscape.

Researchers say the sharp decline in costs is positioning solar power at the center of the global transition toward clean and renewable energy, as countries seek to reduce carbon emissions and address climate change.

Professor Ravi Silva, Director of the Advanced Technology Institute, said solar energy is now the most cost-effective option even in regions with moderate sunlight.

“Even in the UK, solar has become the cheapest option for large-scale electricity generation,” he said, noting that global installed solar capacity exceeded 1.5 terawatts in 2024, doubling since 2020 and supplying power to hundreds of millions of homes.

The study also points to a major factor behind this shift: the dramatic decline in battery costs. Lithium-ion battery prices have fallen by nearly 89% since 2010, making solar-plus-storage systems more viable and competitive with traditional fossil fuel power plants.

By combining solar panels with energy storage, electricity generated during sunny periods can be stored and used later, helping stabilize power supply and reduce reliance on conventional energy sources.

However, experts warn that the rapid growth of solar energy also presents challenges. Integrating large volumes of renewable energy into existing power grids requires new technologies and infrastructure.

Dr. Ehsan Rezaee, co-author of the study, said advanced solutions such as smart grids, AI-based forecasting, and stronger regional interconnections will be essential to maintain grid stability.

Despite these challenges, analysts say solar energy is no longer a future concept but a core pillar of the global energy system, with continued innovation and policy support expected to accelerate its expansion.

The Renewable Energy Institute welcomed the findings, describing solar power as a key driver of the transition toward a low-carbon economy and a sustainable energy future.

Source: Energy Live News