Solar Power Now the Cheapest Energy Source in History, IEA Reports

The International Energy Agency has published its annual World Energy Outlook report with a headline that would have seemed impossible just a decade ago: solar photovoltaic electricity is now the cheapest source of electricity ever recorded in human history.

In most parts of the world, building a new solar farm is now cheaper than running an existing coal or gas plant. The average cost of solar power has fallen by 89% over the past decade.

"What we're witnessing is arguably the most important energy transition in human history," said IEA Executive Director Fatih Birol. "And unlike previous energy transitions, this one is happening faster than any forecast predicted."

The International Energy Agency confirms solar electricity is now cheaper than coal, gas, and nuclear in 90% of the world, accelerating the clean energy transition.

The implications are profound: 42 countries now generate more than 30% of their electricity from renewables. Global CO2 emissions from electricity generation peaked in 2023 and are now declining for the first time since reliable records began.

For developing nations, the cheap solar boom means access to electricity for communities that would have waited decades under the old fossil fuel model. An estimated 150 million people gained electricity access in 2025 alone, primarily through solar microgrids.