Solar economics compelling as costs fall, installs rise

A solar boom driven by falling costs and surging production capacity is putting the world economy on track for decarbonisation.

A report released by Australian think tank Climate Energy Finance found China is leading by a huge margin, with the world on the brink of a dramatic acceleration in the transition from fossil fuels to clean energy.

“The economics of solar power are now compelling, and will only get stronger this decade,” lead author Tim Buckley said on Wednesday.

Solar module prices have dropped by a third from 2021 and the research forecasts solar electricity costs to halve by 2030.

Further, technological advances could result in solar panels lasting up to 50 years – almost double existing assumptions.

Solar has achieved record annual installs every year this decade and could hit 1000GW of solar installations per year by 2030, according to the report.

Russia’s invasion of Ukraine at the start of 2022 focused global attention on energy security and the need for diversity of supply.