Solar Energy Now Cheaper Than Coal Everywhere in the World

Solar Energy Now Cheaper Than Coal Everywhere in the World

Solar photovoltaic energy has reached a historic milestone: it is now cheaper than new coal power in every country on Earth.

The Numbers

• Solar LCOE: $25-50/MWh globally (down 90% since 2010)
• Coal LCOE: $65-150/MWh for new plants
• Solar capacity added in 2025: 450+ GW (more than all other sources combined)
• Global solar capacity: 2+ TW installed

Why Solar Keeps Falling

1. Manufacturing scale: China produces 80%+ of solar panels, driving costs down
2. Efficiency gains: Commercial panels now reaching 24-25% efficiency
3. Material innovations: Perovskite-silicon tandem cells targeting 35%+ efficiency
4. Installation speed: Solar farms built in 6-12 months vs 5-7 years for coal

Regional Leaders

• China: 600+ GW installed, adding 300+ GW annually
• US: 200+ GW, IRA incentives accelerating deployment
• India: 150+ GW, targeting 500 GW renewable by 2030
• Europe: 300+ GW, accelerated by energy security concerns

The Storage Solution

Battery storage costs have fallen 80% since 2015, enabling solar to provide reliable 24/7 power:

• Grid-scale batteries: $100-150/kWh (down from $600+ in 2015)
• 4-8 hour storage now economically viable
• Solar + battery beating gas peaker plants on cost

The Coal Transition

• 40+ countries have committed to coal phase-out
• Coal plant retirements accelerating globally
• However, 1,000+ GW of coal capacity still operating

Challenges Remaining

• Grid integration of intermittent sources
• Supply chain concentration (China dominates panel manufacturing)
• Recycling of solar panels at end of life
• Land use for utility-scale solar farms

The Outlook

Solar is projected to provide 30%+ of global electricity by 2030 and over 50% by 2040.