Renewables Overtakes All Other Energy Sources

Solar Panels during Dusk
Solar Panels during Dusk Photo by Magic K

Solar just keeps winning on every metric! The International Energy Agency (IEA) released their 2026 Global Energy Review and it provides a good look into the use and generation of energy on a global scale. Growth of energy demand slowed slightly to 1.3% while the growth in renewables is quite noteworthy. Last year solar was the single biggest contributor to energy supply and this marks the first time that renewables have led primary energy growth. It’s not just solar where the renewable success is coming, it’s across the board with renewables being the preferred energy source.

The increase in generation from renewables and nuclear power in 2025 exceeded the total growth in electricity supply. The 2025 increase in solar PV of 600 terawatt-hours (TWh) was the largest-ever electricity generation increase by any source in one year, outside of periods of post-crisis recovery. The rise in solar PV alone met around 70% of electricity generation growth. Renewables combined now virtually match total global generation from coal. In the European Union, the share of solar PV and wind reached 30% in 2025, surpassing that of fossil fuels for the first time. Electricity generation from natural gas and from nuclear power continued to grow at the global level in 2025.

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Building New Solar Energy Plants Cheaper than Running Coal

Solar Panel School

Since the inception of Things Are Good we’ve been following the demise of dirty fossil fuel usage and the rise of clean energy. A few highlights from over the years:
Solar Power Is Cheaper Than Nuclear
Solar And Wind Outgrow Subsidies
Wind Power: One Of The Cheapest Sources Of Energy
German Coal And Gas Power Plants Closing Due To Cheap Renewable Energy

The rise of renewable energy is even more impressive given the massive subsidies given to fossil fuel industries. Despite the bailouts for companies operating in the tar sands, the car subsidies, and other related government handouts, renewable energy just gets cheaper and cheaper.

This past month the International Energy Agency declared solar to be the cheapest source of electricity in history. Cheaper than coal!

Now, the IEA has reviewed the evidence internationally and finds that for solar, the cost of capital is much lower, at 2.6-5.0% in Europe and the US, 4.4-5.5% in China and 8.8-10.0% in India, largely as a result of policies designed to reduce the risk of renewable investments.

In the best locations and with access to the most favourable policy support and finance, the IEA says the solar can now generate electricity “at or below” $20 per megawatt hour (MWh). It says:

“For projects with low-cost financing that tap high-quality resources, solar PV is now the cheapest source of electricity in history.”

The IEA says that new utility-scale solar projects now cost $30-60/MWh in Europe and the US and just $20-40/MWh in China and India, where “revenue support mechanisms” such as guaranteed prices are in place.

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