• Solar module prices have fallen by 35 percent to less than 9 cents per watt, while electric vehicle batteries now cost under 100 dollars per kilowatt hour.
• Renewable energy expansion grew by 17 percent during 2024, with record installations of approximately 600 GW solar power and 125 GW wind power.
• Investments in renewable energy sources now outpace fossil fuels by 10 to 1, with more money in solar energy than all other power sources combined.

Costs continue to decline

After 2024, clean energy is cheaper than ever before. Global prices for solar modules fell by 35 percent to less than 9 cents per kilowatt hour. Electric vehicle batteries saw their best price reduction in seven years, with a decrease of between 30 and 50 percent for cathodes and 20 percent for entire batteries to under 100 dollars per kilowatt hour.

Electric vehicles have now reached cost parity with fossil-fueled vehicles in the US in terms of ownership costs and in China in terms of purchase price. Europe is expected to reach the same milestone now, the US in 2026, and India in 2027 for both two- and four-wheeled vehicles.

The lower cost does not mean lower quality. An average battery from 2024 uses less than half as much nickel and cobalt as a decade ago, and new technologies could double energy density in the next five years.

The use of clean technology is more widespread than ever. Renewable energy expansion increased by 17 percent with a record of approximately 600 GW solar energy, 125 GW wind power, and an almost doubling of energy storage installations to around 170 GWh during 2024.

Investments in renewable energy sources now outpace fossil fuels by 10 to 1, with more money in solar energy than all other power sources combined. As a result, renewable energy sources are poised to surpass coal as the leading power source during 2025.

The progress is truly global. As a share of electricity production, solar and wind power are growing twice as fast in countries in the global south compared to the global north. Countries like Pakistan and Namibia have used Chinese solar energy exports to almost double their total electricity capacity in just two years.

Meanwhile, electric vehicle sales increased by 25 percent, with over 16 million vehicles sold during 2024 – driven by China, which has electrified more than half of its new cars since July.

Improved global outlook

Emissions from fossil fuels appeared to increase by 0.8 percent to 37.4 gigatons of carbon dioxide during 2024, but several analyses show that they may peak and begin to decline during 2025. Half the world or more has passed peak demand for residential gas and gasoline, and more than half of countries are 5+ years past the peak for fossil electricity.

As a result, leading forecasts such as those from the International Energy Agency (IEA) have once again raised their projections for renewable energy and electrification, while lowering their forecasts for fossil fuels, emissions, and carbon capture.

WALL-Y
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