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🌱 Renewables Now Cheaper Than Fossil Fuels in 90% of the World 🌞💸

Renewables now beat fossil fuels in 90% of the world, says IRENA. Discover how solar and wind are reshaping global energy, cutting costs, and driving a cleaner future.

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Green Glow
August 02, 2025

In a major breakthrough for the global energy transition, a new report from the International Renewable Energy Agency (IRENA) confirms that 91% of new renewable energy projects in 2024 were more cost-effective than the cheapest new fossil fuel alternatives. This signals a massive shift in the economics of power generation—and possibly the beginning of the end for fossil fuels.

Table of Contents

Cost Advantage: Solar and Wind Lead the Charge

According to IRENA, the cost of producing electricity from solar photovoltaic (PV) and onshore wind has plummeted dramatically. In 2024:

  • Solar PV was 41% cheaper than the lowest-cost fossil fuel source.

  • Onshore wind was a whopping 53% cheaper on average.

This price advantage is not limited to a few countries. It spans across developed and developing nations, making clean energy not just an environmentally conscious choice—but a financially smart one.

Record-Breaking Growth in Renewables

2024 saw 582 gigawatts (GW) of new renewable capacity added worldwide—a 20% increase from the year before. Renewable energy sources, including solar, wind, hydro, and geothermal, made up over 92% of all new capacity built last year.

This surge is driven by a mix of falling technology costs, favorable government policies, and growing demand for sustainable energy alternatives.

Huge Savings on Fossil Fuel Costs

Perhaps the most impactful statistic from the report: renewables saved the global economy up to $467 billion in avoided fossil fuel expenses in 2024 alone.

With many countries facing high energy prices and inflation, renewables have become a critical tool for economic stability.

The Clean Energy Tipping Point

IRENA’s findings show we are at a tipping point in global energy economics. For the first time in history, renewables are the default cheapest source of new power in most of the world. That means every time a new power plant is built, the smartest financial choice is usually clean energy.

Challenges Still Remain

Despite the positive momentum, there are still barriers to overcome:

  • Grid upgrades are needed to handle variable renewable power.

  • Energy storage technologies must be scaled to ensure 24/7 reliability.

  • Supply chain bottlenecks and access to critical raw materials (like lithium, cobalt, and rare earth metals) remain concerns.

  • Policy uncertainty and trade disputes can also slow deployment.

Addressing these issues will be key to sustaining the renewable revolution.

A Win for the Planet—and the Wallet

The shift to cheaper renewable energy is more than a climate victory—it’s an economic revolution. As more countries realize the cost savings, energy independence, and environmental benefits, the global move toward renewables will only accelerate.

Whether you're a policymaker, investor, or everyday consumer, one thing is clear: renewable energy is no longer a luxury—it’s the smart, affordable future.

Conclusion

The rapid rise of renewable energy has shifted the global energy landscape. With 90% of new renewable projects now cheaper than fossil fuels, the case for clean energy is no longer just about climate responsibility—it’s about smart economics. Solar, wind, and other renewables are not only cutting greenhouse gas emissions but also saving billions in energy costs worldwide.

As technology advances and infrastructure improves, this cost advantage will only grow. The world is entering an era where clean, affordable, and sustainable energy is the norm—not the exception.

FAQs

Why are renewables now cheaper than fossil fuels?

Technological advancements, economies of scale, and falling production costs have drastically reduced the price of solar panels, wind turbines, and battery storage—making renewables more cost-effective than fossil fuels in most regions.

Which renewable sources are the most cost-effective?

Solar photovoltaic (PV) and onshore wind are currently the cheapest forms of new electricity generation globally, according to IRENA’s 2024 data.

Is this trend global or limited to specific regions?

The cost advantage of renewables is global. In both developed and developing countries, 91% of new renewable energy installations were cheaper than their fossil fuel alternatives in 2024.

Can renewables fully replace fossil fuels?

While renewables are rapidly expanding, full replacement depends on continued investment in energy storage, grid modernization, and policy support. The trend, however, clearly points toward a renewable-dominated future.

What are the main challenges facing renewable energy growth?

Key challenges include grid infrastructure limitations, supply chain issues, and intermittency (for solar and wind). These can be mitigated through better storage, smart grids, and diversified energy mixes.

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