How Solar Energy is Changing Power Generation

Looking backwards to predict the future is misleading. New technologies scale far faster than their predecessors. Solar took just eight years to grow from 100 TWh to 1,000 TWh—and only three more years to double again, surpassing 2,000 TWh in 2024. For each of the past three years, solar has been the largest source of new electricity worldwide. Nothing else in power generation has scaled this quickly. Falling costs, modular design, and rapid deployment are turning solar into the backbone of the emerging global energy system. It’s clean, scalable, and increasingly central to modern economies. And as battery costs tumble and storage deployment accelerates, a growing number of projects are targeting round-the-clock solar electricity.

Coal has already lost the middle of the day to rooftop solar. Now it’s on track to lose the evening peak as well. Rooftop solar has been eroding grid demand for years – the classic "duck curve". With nearly 30 GW spread across one in three homes, midday grid demand regularly approaches zero in some states. This has been bad news for coal generators, which prefer to run at a steady output. They have been forced into awkward operating modes, including ➡️ Ramping down in the middle of the day ➡️ Two-shifting - switching off some units entirely ➡️ Or bidding well below zero just to stay online. It also hasn't been great for large scale solar, which has seen increasing levels of curtailment due to the impact of rooftop solar. But that's all about to change. A new wave of solar-and-battery hybrid projects is arriving. With behind-the-meter storage, they can shift their output into the evening peak — when demand and prices are far higher. That’s exactly where coal has been relying on higher revenues to stay afloat. There is a remarkable amount of capacity on the way: ✅ The Tallawang hybrid project is in the works, with 500 MW of solar and 500 MW / 1,000 MWh of storage. ✅ The most recent CIS tender: 3.4 GW of hybrid solar/battery capacity with more than 11 GWh of storage. ✅ The previous CIS tender: another 1.1 GW and 2.7 GWh. Residential batteries are also contributing, adding roughly 1.25 GW / 5 GWh of distributed storage every year. All of this shifts more generation – and far more flexibility – into the evening peak, which has long been coal’s most reliable source of revenue. Coal lost lunchtime to rooftop PV. It’s about to lose dinner as well. #energy #renewables #energytransition

Solar power reaches a historical milestone Solar power generated 22.1% of EU electricity (45.4 TWh) in June 2025, more than any other power source for the first time ever. This isn’t just an environmental victory—it’s a fundamental shift in European energy economics that creates immediate business opportunities. This is an increase of 22% from June 2024. In second place was nuclear with 21.8% (44.7 TWh), followed by wind with 15.8% (32.4 TWh). At least 13 member states hit monthly solar power records, including the Netherlands (40.5 per cent) and Greece (35.1 per cent). Coal generated just 6.1% (12.6 TWh) of EU electricity in June 2025, down from 8.8% in June 2024. Ten EU countries had zero coal generation in June, as coal use continues to decline, with Ireland closed its last coal plant on 20 June 2025. What are the reasons? Massive market opportunity: The global renewable energy market size was estimated at USD 1.51 trillion in 2024 and is projected to reach USD 4.86 trillion by 2033, growing at a CAGR of 14.9%. In Europe specifically, without wind and solar capacity added since 2019, the EU would have imported 92 billion cubic metres more of fossil gas and 55 million tonnes more of hard coal, costing €59 billion. Cost competitiveness: The cost of solar power decreased by 82% between 2010-2020, making it the most competitive source of electricity in many parts of the EU. Studies suggest cost savings from the shift to renewables and further electricity market integration could amount to around 40 billion euros annually by 2030. Job creation: The workforce of the photovoltaic sector grew by 27% to 826 000 by the end of 2023, up from 648 100 workers in 2022. Europe could see more than 1 million solar workers by 2027. How can businesses benefit? - Power Purchase Agreements (PPAs): Lock in predictable energy costs while supporting renewable development - Supply chain analysis: Evaluate energy-intensive suppliers and consider renewable requirements - Investment portfolio: Cleantech manufacturing: Overall investment in cleantech reached a record US$71 billion in the third quarter of 2024 - Market positioning: Align with companies and financial institutions increasingly prioritizing renewable energy projects to align with their ESG goals - Geographic advantage: Southern Europe excels in solar power, while northern and Atlantic coastal areas excel in wind energy—optimize operations accordingly - Workforce development: Prepare for the skills transition in the growing renewable sector #renewableenergy #solarpower #businessstrategy #energytransition #sustainability #innovation #cleantech #europeanbusiness #energyindependence #futureofenergy

Earlier this week, some compelling new energy data was released—but it didn’t get nearly as much attention as it should have. Here’s the key takeaway: In 2024, the U.S. power grid added more solar capacity than any other energy source in a single year in two decades, accounting for 84% of all new electricity generation. That’s 50 gigawatts of new solar capacity added in just one year. Globally, solar power generation surged 30% compared to 2023, with China alone contributing over 50% of the new additions. Just four countries—China, the U.S., Germany, and Brazil—accounted for 75% of global solar expansion. Despite many misleading media narratives and political debates, the momentum behind solar energy and battery storage remains strong in the U.S. and beyond. But meeting the growing demand for electricity will require a diverse energy mix, including innovative nuclear solutions. Projections for future energy consumption continue to rise, with expectations of 3–5% annual growth or more over the next decade. The more carbon-neutral our energy generation, the better for our economy, our environment, and future generations. Solar will undoubtedly play an increasingly vital role in the energy landscape—both in the U.S. and globally.

As Earth Day approaches (next Wednesday), it feels like a good moment to take stock of where solar actually stands in the United States, not where advocates hope it will be, but where the data says it is right now. Solar accounted for 54% of all new electricity-generating capacity added to the U.S. grid in 2025. Combined with battery storage, the two technologies made up 79% of all new capacity added during the year. Solar has now been the largest source of new generating capacity added each month for 28 consecutive months, going back to January 2024, and installed utility-scale solar capacity has surpassed the individual capacities of wind, hydropower, and nuclear power. Cumulative U.S. solar capacity reached 279 gigawatts at the end of 2025, and current projections point to that number nearly tripling to 769 gigawatts by 2036. In 2026, developers plan to add 43.4 gigawatts of new utility-scale solar capacity, a 60% increase from last year, and solar makes up 51% of all planned new capacity additions for the year. Adding in the expected wind energy and battery storage already pending grid approval, clean energy will account for 93% of all new energy in the USA in 2026. There are real headwinds. Policy uncertainty, tariffs, interconnection backlogs, and the expiration of the residential investment tax credit are all factors that will shape how much of that projected growth actually materializes. The numbers above reflect plans, not guarantees. This push is happening for a couple reasons. First, solar is the cheapest and fastest energy source to install. Second, increased demand from Data Centers and reduced supply from aging infrastructure are pushing electricity prices up. But the underlying economics and deployment momentum are hard to argue with. Solar is not a niche technology or a distant aspiration. Across the country, it is the default answer to the question of where new power comes from. That trend did not happen by accident. It happened because property owners, farmers, businesses, and communities made decisions that added up. #SolarEnergy #EarthDay #RenewableEnergy Illustration Credit: RELX SDG Resource Centre

This visual helps explain 3 concepts that A LOT of people forget about solar☀️   Solar energy’s fuel (sunshine) is free and delivered daily.   Therefore, electricity from solar does not include the cost of each marginal unit of fuel. That makes sense to people.   But the full implications of an energy system built upon a zero-cost, abundant fuel source are often still dramatically underestimated.   There are three other kinds of savings that solar provides:    Infrastructure Savings – As shown in the graphic, the world spends billions of dollars every year extracting oil, gas, and coal and transporting to the places it will be burned. The infrastructure to mine, refine, and move these fuels from point A to point B, whether by boat, rail, or pipeline, requires regular maintenance and TONS of investment. With solar, the sun does it all for us, delivering usable photons every morning.   Predictability Savings – When you’re relying on a globally traded commodity to produce electricity, the final cost of each gigawatt can fluctuate with the current price of oil and coal. Market uncertainty can send the price of these commodities (and the final price for electricity) soaring on a whim. But it doesn’t need to be this way. Once a solar farm is installed, the cost of each unit of electricity is basically fixed. This helps utilities better predict their costs and that’s a huge benefit to consumers.   Energy Independence Savings – Because oil, gas, and coal rely on complex international supply chains and lots of global infrastructure, there is a lot more that can go wrong. Geopolitical shocks, natural disasters, port congestion, and accidents (remember the Suez Canal blockage?) can all impact the predictability and reliability of coal and gas generation. No one can embargo the sun or interrupt its delivery to us, so solar energy is fundamentally more local and more independent.   I think it’s important to explain these hidden savings when talking to naysayers because, while they may understand that free sunshine = free fuel, they may not understand just how much they’re paying for the infrastructure, uncertainty, and volatility of fossil fuels.

As Europe experiences its first major heatwave of the summer, the fragility of our current energy system becomes strikingly clear.   Temperatures are rising well above 30°C, and with that, demand for cooling is spiking. Air conditioning systems are running at full capacity across households, offices, and industries. At the very same time, nuclear power plants are being forced to reduce output—because river levels are too low and temperatures are too high to provide sufficient cooling water.   So just as demand rises, reliable baseload power disappears. And yet, there’s no shortage of electricity—at least not from the sun.   Solar PV systems are generating in abundance, feeding large volumes of clean energy into the grid. In fact, there’s so much solar at times that we’re seeing negative electricity prices.That might sound like a success story.    Midday solar surpluses are only helpful if we can store and shift that energy to when and where it's actually needed. What we’re missing is system flexibility—the ability to balance supply and demand over time, across regions, and in response to changing weather.   This is exactly where battery storage and advanced grid technologies come into play.   SMA Solar’s grid-forming solution allow solar and storage to provide not just clean power, but also critical grid services: ✅ Real-time voltage and frequency support ✅ Synthetic inertia and short-circuit current ✅ Rapid frequency response far beyond what traditional plants can deliver I’m calling on policymakers to turn ambition into action—and create the conditions to unlock the full potential of clean, dispatchable solar energy.

US clean energy news has been pretty bleak lately. But we're just one country. In many places around the world, the energy transition is accelerating. In few places is that happening faster than Africa as a new report released this week shows. In Ember's latest report, they show that African countries are importing a huge number of solar panels. Imports across the continent rose 60% in the last 12 months alone. In some countries—like Algeria—it's like a straight line up, as you can see in the charts below. Sierra Leone imported enough solar panels to cover 60% of their country's annual electricity demand in the last 12 months. Chad imported enough to cover 50% of their demand. These solar panels will help people across the continent get off the volatile rollercoaster that comes from relying on diesel generators and fossil fuel prices. Distributed solar will provide more stable electricity, powering homes and businesses during frequent fossil fuel blackouts. As in the rest of the world, there's still much progress to be made. Nigeria has a staggering 28 GW of diesel generator capacity—much of it that could be economically replaced by solar and batteries. Over the last 12 months, the entire continent of Africa imported 15 GW of solar. But one lesson from the solar revolution is that growth often happens slowly and then all at once. Blink and you can miss a generational transformation.

Key Milestones & Trends First-Ever Overtake: For the first time, global renewable energy generation (including hydropower, wind, and solar) exceeded coal generation in the first half of 2025, according to the climate think tank Ember. Rapid Growth: The surge in renewables is driven by record-breaking solar power growth, with China accounting for a significant portion of the global increase in solar installations. Declining Coal: Coal generation has seen a dip globally, even while overall electricity demand has increased. Why the Shift is Happening Economic Viability: Wind and solar are now more cost-effective to build and operate than most new coal plants. Technological Advances: Improvements in renewable energy technology and installation rates have made them a dominant force in meeting growing electricity demands. Implications Climate Impact: The shift away from coal significantly reduces the carbon emissions associated with electricity generation, helping to combat climate change. Public Health Benefits: Replacing coal power, which contributes to respiratory illnesses and premature deaths, leads to better public health outcomes. Energy Security: Renewables can boost energy security by providing a diverse and domestic power supply. Future Challenges & Opportunities Grid Modernization: Continued investment in grid infrastructure, battery storage, and transmission is necessary to fully integrate and stabilize the growing renewable energy supply. Policy and Investment: Governments and industries must accelerate investment in solar, wind, and storage to maintain this positive trajectory and ensure clean electricity reaches all communities.