Global growth in solar "the largest ever observed for any source"

Key Points:

• The International Energy Agency (IEA) declared 2025 as the first year of solar power dominance, with solar energy growth covering over two-thirds of the increased electricity demand and driving carbon-free energy sources to outpace rising energy demand.
• Electricity demand grew at twice the rate of overall energy demand in 2025, driven by increased electric vehicle sales (up nearly 40%) and heat pump adoption, although fossil fuel use remained relatively stagnant with only slight increases in natural gas and coal consumption.
• Battery storage capacity expanded rapidly, with a 40% increase in new installations, enabling greater reliance on solar power and reducing the need for fossil fuel backups.
• Despite a small rise in global energy-related carbon emissions (0.4%), this growth has slowed for the third consecutive year, partly due to China’s emissions decline attributed to industrial changes and renewable energy expansion.
• Geopolitical tensions, such as the closure of the Strait of Hormuz, are expected to accelerate the shift away from fossil fuels in 2026, as countries face reduced fossil fuel availability and higher prices, increasing interest in electrification and renewable alternatives.