Solar energy has officially claimed the title of the world’s most affordable source of electricity. According to new research from the University of Surrey’s Advanced Technology Institute (ATI), solar power now costs as little as £0.02 per kilowatt-hour in the sunniest regions.

The study, published in Energy and Environmental Materials, highlights how solar photovoltaic (PV) technology has transformed from a niche innovation into the backbone of the global clean energy revolution.

As countries race to cut carbon emissions and combat climate change, the rapidly falling cost of solar power is unlocking access to clean energy on an unprecedented scale.

Solar Becomes the Cornerstone of a Low-Carbon Future

Professor Ravi Silva, co-author of the study and Director of the ATI, emphasized that even in less sunny nations like the UK, solar power has become the most cost-effective option for large-scale generation.

He precisely noted,

“Even here in the UK, a country that sits 50 degrees north of the equator, solar is the cheapest option for large-scale energy generation. Globally, the total amount of solar power installed passed 1.5 terawatts in 2024 – twice as much as in 2020 and enough to power hundreds of millions of homes. Simply put, this technology is no longer a moonshot prospect but a foundational part of the resilient, low-carbon energy future that we all want to bring to reality.” 

This milestone shows that solar energy is no longer experimental. It’s a proven cornerstone of the low-carbon future the world is building toward.

Alongside solar, the cost of lithium-ion batteries—key to storing renewable power—has dropped by a staggering 89% since 2010. This sharp decline has made solar-plus-storage systems a competitive alternative to conventional gas-fired power plants.

Global Solar Costs Fall Over 80% in a Decade

According to the International Renewable Energy Agency (IRENA), the global weighted-average levelized cost of electricity (LCOE) for utility-scale solar PV dropped by over 80% between 2010 and 2023. In sun-rich regions, it now costs as little as $0.03 per kilowatt-hour—making it the cheapest source of new electricity generation worldwide.

This steep decline stems from a mix of technological, economic, and policy factors. Breakthroughs in solar cell efficiency, bifacial modules, and tracking systems have dramatically boosted energy output.

Also, competitive auctions and long-term power purchase agreements (PPAs) have made solar development more transparent and efficient. Industry experience has also cut costs for installation and maintenance.

Today, solar PV is cheaper than coal, gas, and even wind in many markets, shifting the question from “Why choose renewables?” to “How fast can we deploy them?”

Levelized Cost of Energy Comparison—New Build Renewable Generation

China’s Role in Falling Clean Energy Costs

Meanwhile, bigger economies, especially from large-scale manufacturing in China, have lowered hardware and installation costs.

Bloomberg also expects the cost of clean energy technologies, i.e., solar, wind, and battery storage, to drop further in 2025. It could be falling 2–11% and breaking last year’s records. In almost every part of the world, new solar and wind farms are now cheaper to build and operate than new coal or gas plants

Significantly, China’s overcapacity in clean tech has led some countries to impose import tariffs, temporarily slowing cost declines. Still, BNEF expects levelized costs for clean energy to fall 22–49% by 2035, keeping renewables on track for long-term growth.

• Battery storage costs dropped a third in 2024 to $104/MWh, driven by oversupply from slower EV sales, with prices expected to cross $100/MWh in 2025.
• Fixed-axis solar farms fell 21% globally, while wind and solar generation costs are projected to decline another 4% and 2%. It ensures clean energy remains cheaper than fossil fuels.

• ALSO READ: Renewable Energy Investment Reaches Record High as China Operates World’s Biggest Solar Farm

Storage Revolution: Solar Power Around the Clock

The global energy storage boom has turned solar from an intermittent resource into a 24-hour power solution. It’s because of the massive cost reductions in batteries, solar-plus-storage systems can now compete head-to-head with gas-fired plants.

However, challenges remain in connecting large volumes of solar power to existing grids. Regions like California and China have already experienced energy curtailment due to grid congestion when solar output exceeds demand.

Dr. Ehsan Rezaee, co-author of the University of Surrey study, noted that “smart grids, artificial intelligence forecasting, and stronger regional interconnections will be essential to maintain power system stability as renewable adoption grows.”

Global Policy Boosts vs. U.S. Uncertainty

Supportive policy frameworks are key to sustaining solar’s momentum. In Europe, the Green Deal and RePowerEU initiatives have simplified permitting and set aggressive renewable targets.

India’s Production Linked Incentive (PLI) scheme, meanwhile, is strengthening local solar manufacturing to reduce dependence on imports. These measures are not only cutting carbon emissions but also advancing energy security, job creation, and economic growth.

International partnerships, such as the International Solar Alliance (ISA), continue to drive collaboration, knowledge exchange, and capacity building, particularly in developing nations that stand to benefit most from affordable solar energy.

OBBBA: Dimming the Sunshine 

However, the story is slightly different in the U.S. In July 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA), which speeds up the phase-out or early termination of most renewable energy tax credits and clean energy incentives established under the IRA.

As a result, U.S. clean energy incentives are being rapidly scaled back, with many tax credits set to expire or face new restrictions and deadlines, creating significant uncertainty for investors and project developers.

• RELATED: Trump Ends Era of ‘Unreliable Green Energy’—Wind and Solar Subsidies Scrapped

Breakthrough Technologies Drive the Next Wave

Solar technology innovation is accelerating at record speed. Researchers at the University of Sydney recently achieved a world-first breakthrough with a 16 cm² triple-junction perovskite solar cell delivering 23.3% efficiency for large-area devices. A smaller version reached 27.06% efficiency—the highest globally—and retained 95% performance after 400 hours of continuous operation.

Perovskite solar cells could revolutionize the market by boosting energy output by up to 50% without expanding land use. They can be made as thin, flexible films at lower temperatures than traditional silicon panels, cutting production costs significantly. Over the past decade, perovskite efficiency has soared from 3% to over 25%, with tandem cells poised to exceed 30%. These innovations will further drive down solar costs and expand applications across rooftops, vehicles, and portable systems.

Solar Dominates Future Renewable Growth

The International Energy Agency (IEA) forecasts that global renewable capacity will double by 2030—adding 4,600 gigawatts (GW), equivalent to the combined power generation capacity of China, the EU, and Japan.

• Solar PV will account for nearly 80% of this growth, followed by wind, hydropower, and bioenergy.

According to DNV’s latest Energy Transition Outlook, global solar capacity is expected to surpass 3,000 GW by the end of 2025, with China holding 47% and Europe 20%. It further highlights:

• Solar already generates about 10% of the world’s electricity and is projected to reach 20% by 2029 and 40% by 2045.
• Behind-the-meter (BTM) solar used by households and businesses is also on the rise and is expected to make up 30% of total solar generation by 2060.
• Wind power is projected to nearly double to over 2,000 GW by 2030, but solar remains the lowest-cost option in most markets.

India is emerging as the second-fastest renewables market after China, advancing its 2030 targets. Expanded auctions and rapid rooftop solar growth contribute to the solar boom.

However, the world still falls short of the COP28 goal to triple renewable capacity by 2030, achieving about a 2.6-fold increase from 2022 levels. Closing this gap will require continued investment, innovation, and political will.

Building a Resilient Solar Future

As solar continues to dominate the global energy landscape, integration challenges must not be ignored. Expanding transmission networks, deploying digital grid management tools, and investing in advanced materials will be crucial.

Professor Silva emphasizes that sustained policy backing and continued innovation will determine how quickly the world transitions to a clean, resilient energy future.

The Renewable Energy Institute applauds solar’s rise as the cheapest source of electricity and continues to provide accredited training to build the skills needed to sustain this momentum.

Thus, from record-low costs to record-breaking efficiency, solar energy is reshaping the global energy system faster than anyone imagined. Its combination of affordability, scalability, and innovation is driving the clean energy transition forward.

The question now isn’t if solar will dominate, but how quickly the world can harness its full potential.

• LATEST: Microsoft Expands Japan’s Green Grid with Shizen Energy’s 100 MW Solar Push 

The post Solar Now the World’s Cheapest Energy, Powering the Clean Transition appeared first on Carbon Credits.

The world’s renewable energy sector has entered a new phase of record growth. According to the International Energy Agency’s Renewables 2025 report, global renewable power capacity grew by more than 510 gigawatts (GW) in 2024 — the fastest increase ever recorded. Another 520 GW is expected to be added in 2025, pushing renewables to account for over 90% of all new global power capacity.

Solar and wind dominate this growth. By 2025, solar will account for nearly three-quarters of new installations. This growth comes from cheaper technology, improved grid integration, and supportive policies. Wind power is also recovering after a slowdown in 2022–2023, supported by new offshore projects in Europe, China, and the United States.

The IEA says the world’s total renewable capacity will reach nearly 5,800 GW by 2025, up from around 4,200 GW in 2023. That means renewables now generate about 30% of global electricity and are on track to reach 42–45% by 2030.

Four regions — China, Europe, the United States, and India — are responsible for almost 90% of this global expansion. Each is moving at a different pace, but together they are transforming how the world produces and consumes energy.

Europe: Accelerating the Energy Transition

Europe continues to lead in energy policy and innovation. In 2024, the European Union added more than 70 GW of new renewable capacity, driven mainly by solar. This is a record year. It shows the bloc’s goal to cut reliance on imported fossil fuels. They aim to meet their Green Deal target of a 55% emissions reduction by 2030.

Solar capacity across the EU doubled between 2020 and 2024, reaching over 300 GW, while wind capacity passed 220 GW. The IEA predicts that Europe will add 450 GW of renewables from 2025 to 2030. This will raise the total capacity to almost 870 GW by the end of the decade.

Much of this growth is tied to the REPowerEU plan, which aims to speed up permitting and expand rooftop solar. Offshore wind is gaining popularity. Countries like Germany, Denmark, and the Netherlands are investing in North Sea projects.

Despite progress, Europe faces challenges. Delays in grid expansion and limited local manufacturing capacity for wind turbines have created supply bottlenecks. Even so, strong policy support and high carbon prices still make renewables the best choice for power generation.

United States: Policy Support and Private Investment Drive Expansion

The United States is entering a period of major renewable growth, supported by the Inflation Reduction Act (IRA) and record private investment. The IEA expects the U.S. to add around 400 GW of new renewable capacity by 2030, effectively doubling its current base.

In 2024, U.S. solar installations rose by nearly 40%, reaching 45 GW for the year. Solar now accounts for the largest share of new capacity additions. Wind power also recovered, with onshore and offshore projects expanding in Texas, California, and along the East Coast.

Renewables currently generate about 26% of U.S. electricity, up from 22% in 2022. The IEA projects this share will climb to over 40% by 2030, driven by federal tax incentives and falling technology costs.

• RELATED: America to See a Surge in Renewable Capacity in 2024

Battery storage is another fast-growing sector. Storage capacity doubled between 2023 and 2024, helping stabilize variable solar and wind output. The IRA’s clean energy credits could draw over $400 billion in investments by 2032. This boost will help generate energy and support U.S. manufacturing of solar panels and turbines.

Challenges remain. The U.S. needs to modernize its grid and streamline permitting for transmission lines to connect renewable projects to demand centers. But the direction is clear — renewables are becoming the backbone of America’s energy system.

China: The Global Powerhouse of Renewables

China remains the undisputed leader in renewable energy growth. The IEA projects that China will account for about 60% of all new renewable capacity added worldwide by 2030.

In 2024 alone, China installed more than 260 GW of new renewables — more than the rest of the world combined. Solar made up the majority of this, with over 190 GW of solar capacity added during the year.

Wind power grew by 60 GW. China kept building big onshore and offshore projects in Inner Mongolia, coastal areas, and deserts.

China now has an estimated 1,400 GW of total renewable capacity, representing about half of the global total. Renewables already supply more than 35% of China’s electricity, up from 27% in 2020.

Government policy is the key driver. China aims to reach 1,200 GW of combined solar and wind capacity by 2030, a target it is likely to achieve five years early. The country’s large manufacturing base keeps equipment prices low globally. This helps other regions grow their clean energy fleets.

Still, integration challenges persist. Some provinces face grid congestion and curtailment — when renewable power can’t be used due to transmission limits. The IEA recommends that China continue to invest in grid upgrades and flexible storage systems to handle its rapid growth.

• SEE MORE: China’s Renewable Energy Boom: A Record-Breaking Shift or Still Chained to Coal?

India: The Fastest-Growing Emerging Market for Renewables

India is now the fastest-growing renewable energy market among developing economies. The IEA expects India’s renewable capacity to nearly double between 2023 and 2030, expanding from around 190 GW to 360–380 GW.

Solar energy is leading the charge. In 2024, India added more than 17 GW of solar capacity, supported by large auctions and declining costs. Wind capacity also grew modestly, and new hybrid projects combining solar and wind are improving reliability.

The government’s goal is ambitious: 500 GW of non-fossil capacity by 2030, which would cover about 50% of total power demand. India is also expanding its domestic solar manufacturing base to reduce dependence on imports.

Hydropower and bioenergy continue to play supporting roles, particularly in rural electrification. The IEA reports that renewable energy in India cuts over 250 million tonnes of CO₂ emissions each year. This makes India a major player in global emission reductions, second only to China.

However, financing and grid infrastructure remain key hurdles. The report notes that India needs annual clean energy investments of about $60–70 billion through 2030 to meet its targets.

• READ MORE: India Achieves 50% Non-Fossil Fuel Power Milestone: Solar Shines Bright

The chart below compares renewable energy capacity in 2024 vs. 2030 projections for the four key regions, based on the IEA Renewables 2025 report.

It clearly shows China’s dominant position, followed by steady growth in Europe and the U.S., and rapid expansion in India’s renewable capacity by the end of the decade.

The Decade of Clean Power: A Turning Point for Global Energy

The combined momentum of China, Europe, the United States, and India is reshaping global energy markets. Together, these four regions will account for almost 90% of all renewable capacity growth by 2030.

The pie chart shows each region’s share of total global renewable capacity additions from 2024 to 2030, based on the IEA forecast. It also shows how dominant China remains in driving renewable expansion, while Europe, the U.S., and India together account for about one-third of the world’s clean-energy growth.

Global renewable electricity capacity is expected to surpass 6,200 GW in 2025 and reach 8,300 GW by 2030 — roughly triple the total in 2015. Solar will remain the dominant source, followed by wind and hydropower.

Yet challenges persist. The IEA warns that grid constraints, permitting delays, and uneven financing could slow progress in developing economies. To stay on track for the net-zero pathway, annual renewable additions must rise to around 800 GW per year by 2030.

Still, the direction is clear. The world is entering a decade where clean power becomes the main driver of growth, investment, and energy security. The actions of these four key players will determine how fast the transition happens and how close we come to a truly sustainable global energy system.

• FURTHER READING: Renewable Energy Investment Reaches Record High as China Operates World’s Biggest Solar Farm

The post Renewables 2025: How China, the US, Europe, and India Are Leading the World’s Clean Energy Growth appeared first on Carbon Credits.

Gold prices climbed to new highs on Monday, with December futures reaching a record $4,014.60 per ounce. The yellow metal stayed strong as investors sought safety amid global uncertainty and a prolonged U.S. government shutdown.

Goldman Sachs raised its December 2026 gold price forecast from $4,300 to $4,900 per ounce, citing steady central bank purchases and renewed investor interest in gold-backed ETFs. Spot gold has surged 52% so far this year, supported by a weaker U.S. dollar and rising geopolitical tensions.

But first, let’s take a closer look at gold ETFs — what they are and why so many investors are turning to them.

What Are Gold ETFs and Why Are They Popular?

Gold Exchange-Traded Funds (ETFs) mirror the market price of physical gold without requiring investors to hold the metal themselves. Each ETF unit typically represents one gram of 99.5% pure gold, traded on stock exchanges just like shares.

Key features of gold ETFs include:

• Backed by physical gold stored in secure vaults
• Real-time pricing and easy trading through Demat accounts
• No storage or making charges
• Lower transaction costs and high liquidity
• Transparent pricing that tracks the spot gold rate

Central Banks and ETFs Fuel the Gold Price Rush

Reports say that China’s central bank has played a major role in driving gold demand. In September, the People’s Bank of China (PBOC) added to its gold reserves for the 11th month in a row, increasing holdings to 74.06 million troy ounces from 74.02 million in August. The value of these reserves also jumped to $283.29 billion, up from $253.84 billion the previous month.

Goldman Sachs expects central banks to keep buying gold, with around 80 tonnes forecast for 2025 and 70 tonnes for 2026, as emerging economies continue to diversify away from the U.S. dollar.

At the same time, strong inflows into gold ETFs are supporting the rally, giving investors an easier and safer way to gain exposure to rising gold prices.

• SPECIAL READ: Gold’s Next Gear: 3 Charts Every Serious Investor Should See

Top Gold ETFs to Watch: IAU, GLD, and GDX

Gold ETFs provide a practical, cost-effective, and transparent way to invest in gold, avoiding the hassle of storage, insurance, and purity verification.

iShares Gold Trust (IAU)

IAU is one of the largest gold ETFs with around $72.7 billion in market capitalization. Each share represents roughly 0.01 ounces of gold, making it affordable for small investors. With a low expense ratio of 0.25%, IAU offers cost-effective access to physical gold.

However, it does not follow a specific ESG (Environmental, Social, and Governance) framework since it directly holds bullion. Any sustainability impact stems from the gold mining and refining practices behind the physical gold it stores.

SPDR Gold Shares (GLD)

GLD is the world’s largest gold ETF, managing about $129 billion in assets. Each share equals one-tenth of an ounce of gold, stored in vaults in London, New York, and Zurich, backed by custodians like JPMorgan Chase and HSBC. It is known for its high liquidity and tight spreads.

SPDR Gold Shares has removed many barriers to investing in gold, such as buying, storing, and insuring it. The fund provides direct exposure to physical gold, minus expenses, without relying on derivatives that carry extra credit risk.

It allows investors to easily access the gold market and include it in their portfolios, offering a strategic way to diversify risk due to gold’s low or negative correlation with other assets.

Like IAU, GLD does not integrate ESG criteria but depends on the ethical and environmental practices of gold suppliers and refiners.

VanEck Gold Miners ETF (GDX)

GDX differs from IAU and GLD as it invests in leading gold mining companies instead of holding physical gold. Managing around $22.54 billion in assets, GDX tracks major miners such as Newmont and Barrick Gold.

The fund provides leveraged exposure to gold prices through miner performance. Since it involves mining operations, ESG factors play a more direct role covering carbon reduction, responsible sourcing, labor safety, and community development.

Sustainability Perspective: Physical Gold vs. Gold Miners

Physical gold ETFs like IAU and GLD mainly reflect the sustainability impact of gold mining through their bullion holdings. They don’t actively engage in ESG initiatives. In contrast, GDX connects investors directly to mining companies that can influence sustainability outcomes through operational decisions.

Investors focused on responsible investing should assess the ESG performance of individual mining companies within funds like GDX. This approach allows for more transparency and accountability in evaluating how sustainable practices affect returns and risk exposure.

Gold’s Shine Isn’t Fading Anytime Soon: A Smart Safe-Haven Investment

It’s now clear that the gold price is hitting record highs due to central banks buying more, strong ETF inflows, and ongoing global uncertainty. Because of this, ETFs like IAU, GLD, and GDX give investors different ways to invest in gold, depending on their needs for liquidity, cost, and even sustainability.

At the same time, the market is watching for possible Federal Reserve rate cuts and dealing with economic uncertainty. Gold’s appeal as a safe-haven asset remains strong. And Goldman Sachs’ higher forecast adds to investor confidence — the gold story is far from over.

Also, institutional investors are increasingly using gold ETFs to balance portfolios and protect against stock market swings. Experts recommend investing gradually and diversifying, especially after gold’s sharp price jump. Long-term investors like these ETFs because they are affordable, simple, and easy to manage.

Plus, rising interest in gold is encouraging some investors to explore other commodity ETFs, such as silver and industrial metals, to spread their risk.

In short, gold ETFs are a favorite in 2025 for their simplicity, transparency, and ability to protect against inflation and market ups and downs. Both retail and institutional investors see them as a safe and reliable way to invest in uncertain times.

• READ MORE: Gold Price Today Surges to All-Time High at $3,671 as Miners Push ESG and Carbon Reduction Goals

The post Top Gold ETFs to Watch Now as Gold Prices Break $4,000 — IAU, GLD, and GDX Lead the Pack appeared first on Carbon Credits.