The latest International Energy Agency (IEA) outlook shows a rapid surge in affordable renewable energy investments, accelerating the global shift away from fossil fuels. The report indicates that more renewable capacity will be added in the next five years than in the previous 40 years combined — a transformation driven by unprecedented drops in technology costs and rapidly expanding global manufacturing.
Renewables, particularly solar energy, wind and battery storage systems are now growing faster than any other major energy source. As their cost of production falls, investors are reassessing long-term asset strategies. Globally, rising electricity demand from data centres, EVs and home climate systems is expected to be met largely by low-carbon power over the next decade, bolstering the economic case behind large-scale clean energy deployment.
Solar and BESS Price Comparisons Over Time
To get a clearer picture of just how far prices have come, here’s a brief overview of past and present-day costs for solar energy system installations and battery storage systems.
Solar Photovoltaic (PV) Costs
1980s:
General solar module cost: commonly above $70–$75 per watt, making installation financially unrealistic for both residential and commercial applications.
2025:
- Residential solar: typically $2.20–$3.00 per watt installed, depending on region, permitting, and labor.
- Utility-scale commercial solar: module prices often below $0.20 per watt, with complete project costs typically $0.60–$0.90 per watt.
Battery Storage Costs (Lithium-Ion)
2010s
- Residential batteries: generally $600–$900 per kWh, reflecting early demand and limited production scale.
- Utility-scale commercial batteries: often $350–$400 per kWh, with costs constrained by manufacturing capacity.
2025
- Residential batteries: typically $300–$500 per kWh, depending on installation and integration requirements.
- Utility-scale commercial batteries: increasingly near $100 per kWh, with some large contracts reporting prices even lower.
Renewable Energy Investments Hold Strong in Canada
Canada provides a useful example of how countries can benefit from this shift. With a key focus on energy storage flexibility, rapidly growing wind capacity and quick adoption of solar power in both utility-scale and residential markets—Canada is positioned to reduce reliance on imported fuels and stabilize long-term electricity prices.
Competitive solar paired with battery energy storage fueled by provincial incentives—such as BC’s solar and battery programs as well as Ontario’s SaveOnEnergy program—is setting Canada up for an electrified future. The 2025 Federal Budget also signaled long-term development plans for renewable energy for a future-proof diversified national portfolio.
With decades of cost declines and strong global momentum, renewable energy investments are moving into a new phase — one defined by affordability, scalability, and increasingly compelling long-term economics.
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