A new report from The International Energy Agency (IEA) agency has revealed that solar energy has become the lowest-cost electricity source throughout several parts of the world — most of which previously lacked electricity (let alone an affordable source).

This is primarily due to numerous innovations, broader adoption, and risk-reducing financial policies worldwide, which have helped drive down system costs across the board.

"Supportive policies and maturing technologies are enabling very cheap access to capital in leading markets," IEA states in their report. "Solar PV is now consistently cheaper than new coal- or gas-fired power plants in most countries, and solar projects now offer some of the lowest-cost electricity ever seen."

"I see solar becoming the new king of the world's electricity markets. Based on today's policy settings, it is on track to set new records for deployment every year after 2022," said Dr. Fatih Birol, the IEA Executive Director. "If governments and investors step up their clean energy efforts in line with our Sustainable Development Scenario, the growth of both solar and wind would be even more spectacular – and hugely encouraging for overcoming the world's climate challenge."

With large international organizations like the European Union beginning to pledge considerable chunks of power from solar energy by 2030, advancements inevitable.  

"The era of global oil demand growth will come to an end in the next decade," Dr. Birol continues. "But without a large shift in government policies, there is no sign of a rapid decline. Based on today's policy settings, a global economic rebound would soon push oil demand back to pre-crisis levels."