The Power to Change: Solar and Wind Cost Reduction Potential to 2025

Increasing economies of scale, more competitive supply chains and further technological improvements will continue reducing the costs of solar and wind power. The same factors will also boost the availability of these key renewable power sources at night and in varying weather conditions.

With the right policies in place, the cost of electricity from solar and wind power technologies could fall by at least 26% and as much as 59% between 2015 and 2025, finds this cost-analysis report from the International Renewable Energy Agency (IRENA).

The global weighted average cost of electricity could fall by 26% from onshore wind, by 35% from offshore wind, by at least 37% from concentrating solar power (CSP) technologies, and by 59% from solar photovoltaics (PV) by 2025, the report finds.--- In energy markets around the world, rising competitive pressures that will drive continual innovation. While equipment costs will keep declining, reductions in balance-of-system, operation and maintenance and capital costs are becoming increasingly important drivers for overall cost reduction.

The Power to Change, is the first of several solar-focused publications IRENA will release this summer. Future reports include Letting in the Light: How Solar Photovoltaics Will Revolutionize the Electricity System – which provides a comprehensive overview of solar PV across the globe and its prospects for the future – and a report on end-of-life management for solar PV panels. Both reports will launch at InterSolar Europe, taking place in Munich, 21-24 June.