The search for less polluting energy sources is gaining momentum worldwide with significant drops in the costs of producing solar, wind and battery storage. Data from the International Renewable Energy Agency (IRENA) shows that, between 2010 and 2024, spending on these technologies registered marked reductions, making them increasingly competitive in relation to fossil sources.
Solar photovoltaic technology led the decline, with an 87% drop in generation costs in the period. Onshore wind recorded a 55% reduction, while battery storage had the steepest drop: 93%. These numbers come from the “Renewable Power Generation Costs in 2024” report recently released by IRENA.
Falling costs drive global expansion
The clean energy transition movement receives growing support from governments and the private sector. Cost reductions over the past two decades have accelerated the adoption of these sources, especially in countries with good solar irradiation or consistent winds. In Brazil, for example, onshore wind has one of the lowest levelized costs of electricity (LCOE) in the world, below the global average.
Experts highlight that these advances are not limited to the past. The downward trend is expected to continue. IRENA projections indicate an additional decline of around 30% in costs by 2030 and almost 40% by 2035. As a result, hybrid solar or wind solutions combined with storage can deliver firm energy (available 24 hours a day) at lower prices than new coal or gas plants in several regions.
What does this mean for the end consumer
Despite the strong reduction in generation costs, the residential electricity bill continues to be influenced by transmission, distribution, taxes and other components of the chain. Those who install solar systems at home feel the benefit mainly in compensating for the energy generated, but the total impact depends on local regulation and the tariff structure of each country or concessionaire.
Comparison with the previous scenario
In 2010, the levelized cost of solar photovoltaics far exceeded that of the cheapest fossil sources. Today, solar ranks among the most economical options for new generation capacity. The combination with batteries, which are 93% cheaper, makes it possible to overcome the natural intermittency of the sun and wind, paving the way for a more stable and cleaner matrix.
Countries such as China, India and Brazil are already reaping the fruits of this technological maturity, with competitive LCOEs that attract investments and accelerate decarbonization. The expectation is that continuing this trajectory will help meet global climate goals at a lower cost to society.
