Bright future, solar power is the cheapest form of energy in 58 countries
We aren't at a tipping point yet but the indicators are looking good for the future of renewable power, investment and output are up and costs are down.
Key takeaways
- According to a new report from some of the world's leading analyst organisations solar power is becoming the cheapest way to generate electricity.
- In August, an auction to supply electricity in Chile achieved the record low price of $29.10 (£23.30) per megawatt hour, about half the price of a coal competitor.
- Once reliant on imports of vast amounts of diesel, it is now powered completely by 5,000 solar panels and 60 Tesla batteries.
Cite or link to this article
Griffin, M. (2016) 'Bright future, solar power is the cheapest form of energy in 58 countries', 311 Institute, 29 December. Available at: https://www.311institute.com/solar-power-is-now-the-cheapest-form-of-energy-in-58-countries/ (Accessed: 1 October 2026).
According to a new report from some of the world's leading analyst organisations solar power is becoming the cheapest way to generate electricity.
Data produced by Bloomberg New Energy Finance (BNEF) showed the cost of solar in 58 lower income countries, including China, Brazil and India, had fallen to about a third of levels in 2010 and was now slightly cheaper than wind energy.
In August, an auction to supply electricity in Chile achieved the record low price of $29.10 (£23.30) per megawatt hour, about half the price of a coal competitor.
“Renewables are robustly entering the era of undercutting fossil fuel prices,” said BNEF chairman Michael Liebreich.
Renewable energy is cheap in developing countries that are looking to add more electricity to their national grids.
“Renewable energy will beat any other technology in most of the world without subsidies,” he added.
However, in rich nations where new renewable energy generators must compete with existing fossil fuel power stations the cost of carbon free electricity can be higher.
The dramatic plunge in price had partly been produced by the economies of scale, with China in particular recently adding a vast amount of new solar capacity.
“Solar investment has gone from nothing, literally nothing, like five years ago to quite a lot. A huge part of this story is China, which has been rapidly deploying solar,” said Ethan Zindler, Head of US policy analysis at BNEF.
Beijing has also been helping other countries to pay for solar projects.
A BNEF report, called Climatescope, found China, Chile, Brazil, Uruguay, South Africa, and India were the emerging markets most likely to attract investors in low-carbon energy projects.
Solar power has proved a godsend for remote islands such as Ta’u, part of America Samoa, in the South Pacific. Once reliant on imports of vast amounts of diesel, it is now powered completely by 5,000 solar panels and 60 Tesla batteries. Meanwhile the cost of solar, and other renewables for that matter, are expected to fall even further in coming years as new capacity comes online in Africa and as more countries agree to connect their energy grids together to create a new global energy grid.
What this means for your organisation
Renewables win on cost.
In many developing countries solar is now the cheapest new power. Subsidies are no longer needed to compete. Investment will follow the economics.
Rich nations face a different picture.
Where old fossil plants already exist, new renewables compete harder. The switch will be slower there. Plan for different speeds in different markets.
Storage becomes the next need.
Cheap solar shifts the challenge to storing power for night and cloudy days. Grid-scale storage is key. Invest in storage alongside generation.
Three questions for your next leadership meeting
- Which of our sites could switch to cheap solar power?
- How does falling solar cost change our energy contracts?
- Do we need storage to make solar work for us?
The trends and technologies behind this story
From the 311 Starburst, the 311 Strategic Intelligence Unit’s map of the technologies and trends shaping the next 50 years.
Analysis by the 311 Strategic Intelligence Unit, from Matthew Griffin’s article and 311 data. First published on Fanatical Futurist.
FAQ
Why does this matter?
We aren't at a tipping point yet but the indicators are looking good for the future of renewable power, investment and output are up and costs are down.
About the author
Matthew Griffin Founder, President and Futurist, 311 Institute
Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath."
Read full bio
Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath." 17-time best selling author of the "Codex of the Future" series, Matthew is the Founder, President and Futurist of the 311 Institute, a global Futures and Deep Futures advisory firm working with royal households, world leaders, G7, G20, and G77 governments, NGOs, and multi-national mid and mega cap firms to help them explore, shape, and lead the next 50 years of business and society.
An award-winning YouTube creator with over a million followers, with an unrivalled global reach and impact, Matthew is a highly sought-after international keynote speaker, lecturer, and mentor who collaborates with global leaders through the United Nations Alliance of Civilizations (UNAOC) and United Nations General Assembly (UNGA) to shape pivotal initiatives such as the UN’s AI for Humanity program, the United Nations Conference of the Parties (UN COP), and the World Economic Forum in Davos.
As the former Global Head of Cloud, National Security, and Enterprise Sales for companies including Atos, Dell-EMC, and IBM, Matthew has a proven track record of building multi-billion dollar business units and turning failing divisions into market leaders. His ability to identify, analyse, and communicate the implications of hundreds of emerging technologies and trends is unparalleled, and his insights are trusted by many of the world’s most respected organisations, including ABB, Accenture, Adidas, AON, ARM, BCG, Centrica, Citi, Coca-Cola, Dentons, Deloitte, Dow Jones, EY, Google, KPMG, Lego, Legal & General, LinkedIn, Microsoft, PepsiCo, Qualcomm, RWE, Samsung, Siemens AG and Siemens Energy, T-Mobile, UBS, VISA, Walmart, Workday, Worldpay and many others.
Regularly featured in the global media including the AP, BBC, Bloomberg, CNBC, Discovery, Forbes, Khaleej Times, Telegraph, TIME, ViacomCBS, WIRED, and the WSJ, Matthews mission is to help organisations create a fair and sustainable future whose benefits are shared by everyone irrespective of their ability, background, or circumstances.
What future do you need to see?
Choose one to get started on earth and energy and the future of your organisation.
Sources and further reading
- Bloomberg New Energy Finance about.bnef.com
- Climatescope global-climatescope.org
Source: first published by the 311 Institute on 29 December 2016. Cite as: Griffin, M. (2016). Bright future, solar power is the cheapest form of energy in 58 countries. 311 Institute. https://www.311institute.com/solar-power-is-now-the-cheapest-form-of-energy-in-58-countries/
You are welcome to quote this article with credit and a link to the original.