A report by the International Solar Alliance (ISA) predicts that the cost of solar energy generation could fall by 40-60% by 2050, driven by growing demand and advancements in scalability.
The report highlights that solar power is becoming the most scalable and cost-effective renewable energy source, making it a cornerstone of the global energy transition.
It states, “The cost of round-the-clock solar energy generation will decrease by 40-60% by 2050 across various use cases, becoming a critical metric to track the progress of solar adoption.”
The report also emphasizes solar energy’s potential to reduce greenhouse gas emissions by 25% and lower electricity generation costs by 60% by mid-century.
In addition, it projects that solar energy will create three to four times more green jobs than other energy sources, with an estimated 27 million jobs globally by 2050. These job opportunities are expected to benefit women and marginalized communities, fostering inclusive economic growth.
For low-income countries (LICs), the report suggests that solar energy could help provide energy access to over a billion people. It notes, “Solar energy can ensure access for over 1 billion people worldwide through a combination of grid-connected and decentralized solutions.”
The report stresses the importance of targeted policies and technological innovations to transition 2.6 terawatts of existing energy assets to green energy.
Accelerating solar energy adoption in line with Nationally Determined Contributions (NDCs) could align global efforts with the Paris Agreement’s 1.5°C target.
It also points out that high-income countries (HICs) will play a key role, requiring an investment of USD 18 trillion in solar photovoltaic (PV) and storage systems by 2050.
Public funding will be essential to attract private investment, with more than 80% of solar funding expected to come from domestic sources. The report calls on HICs to support capacity-building in emerging and low-income economies to speed up the global energy transition.
With its scalability and cost-reduction potential, solar energy is positioned to lead the renewable energy movement and contribute to a sustainable future.
In addition, the Indian government introduced the PM Surya Ghar: Muft Bijli Yojana, a rooftop solar program, in the interim Budget on February 1 this year. The initiative, with an investment of over Rs 75,000 crores, aims to provide free electricity of up to 300 units per month to 1 crore households.
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