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With the growing energy demand around the world, renewable energy is accounting for a greater portion of the expansion.
Solar and wind are in the best position to take advantage of this growing demand. Currently, China is the leading country in solar and wind capacity. However, in the United States solar and wind combined for more electricity than from coal for the first time.
In 2024, 80% of all new capacity was from solar energy in the United States. However, of all the renewable energy produced in 2024, 2/3s of it was produced in China. With solar power representing 2/3s of China's renewable energy. The drastic reduction in costs for solar panels is one of the leading factors for its large growth. Over the past 60 years price per watt has dropped from over $100 to $.3 in 2023. While in the last 10 years alone battery prices have dropped by almost 80%. This drastic reduction in price is mainly due to China seeing improvement in their manufacturing, which is why they supply 80% of the international supply of solar panels. However, improvement in battery technology has led solar energy to become more efficient, making it easier to store and use power even when there is no sun. Resulting in an additional 585 billion watts of energy coming from renewable sources around the world, with China supplying 374 billion.
With the increasing demand for electricity due to a rise in data centers and their vast demand for electricity, solar is in a superior position to capitalize on this due to their cheap and fast construction times. According to John Ketchum, Chief Executive of NextEra Energy, “If you take renewables and storage off the table, we’re going to force electricity prices to the moon”. Over the next 15 years, US electricity demands are projected to increase by 50%, and currently, 93% of all new projects come from renewable energy showing the vast potential for growth. Not only is it cheaper to build solar plants, it also takes significantly less time. It can take 5 years to order new gas turbines, while it can take only 12 to 18 months to build a new solar plant.
However, with uncertainty in the United States around tax credits for low-carbon energy, there has been a decrease in new jobs and workers. However many House members support the preservation of incentives for low-carbon sources. ConservAmerica, a conservative environmental group, estimated that repealing the tax credit could raise electricity costs by 51 billion by 2035.
Even outside of the United States and China demand for solar and wind power is growing. In Australia, solar energy powers ¼ of their grid. Even Mexico, Turkey, and Vietnam are growing their solar power capabilities faster than other methods. In Somalia, solar power went from being nonexistent to 17% of their market. Internationally renewables grew 15% as the market hit 2 trillion. But just because renewable energy is growing doesn’t mean that coal and gas are shrinking. China and India have both drastically increased their solar power while also using more coal and gas. Recently, India’s parliament implemented a bill increasing its oil and gas production while pledging the importance of renewable energy.
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