Renewables Lead New Power Capacity in 2025
▼ Summary
– In 2025, the world installed an average of 1.4 gigawatts of solar capacity daily, reaching a total of 511 GW for the year.
– Solar power is now the largest renewable energy source by capacity, with a global total of 2.4 Terawatts, over a Terawatt more than wind or hydro.
– Due to falling costs, solar panels are being installed in less sunny areas, which is expected to lower the average energy output per unit of capacity (capacity factor).
– In 2024, solar power generated 7% of the world’s electricity, less than wind (8%) and nuclear (9%), despite having nearly double the installed capacity of wind.
– Solar is rapidly catching up and may already be the second-largest source of carbon-free electricity after hydropower, a position it is certain to reach within this decade.
New data confirms that renewable energy continues to dominate global power expansion, with solar power firmly leading the charge. According to the International Renewable Energy Agency, the world installed a staggering 511 gigawatts of new solar capacity in 2025, averaging 1.4 gigawatts per day. This surge pushes the global total for solar capacity to 2.4 terawatts, solidifying its position as the largest single renewable source. Solar now leads its closest competitors, wind and hydropower, by over a terawatt of installed capacity.
The dramatic growth is largely fueled by declining solar costs, making photovoltaic projects economically viable even in regions with less optimal sunlight. This geographic expansion, however, influences overall energy output. While capacity figures are impressive, the actual electricity generated is lower due to the capacity factor, which measures the real-world productivity of an installation. As solar farms are built in areas with more variable sunshine, the average capacity factor for the global solar fleet is expected to gradually decline.
The impact of this dynamic is clear in recent generation statistics. Data from 2024 shows that solar photovoltaics supplied 7 percent of the world’s electricity, slightly behind wind at 8 percent and nuclear at 9 percent. This output is achieved despite solar having nearly twice the installed capacity of wind, highlighting the difference in their typical capacity factors. Nevertheless, solar energy is rapidly closing the gap in total generation. The 2024 figures do not include concentrated solar power or the substantial new capacity added in 2025. It is therefore highly probable that solar has already become the world’s second-largest source of carbon-free electricity, trailing only hydropower. If that milestone was not reached last year, it is virtually certain to occur well before 2030.
(Source: Ars Technica)
