Pictured: Wind and solar in Bac Phong, Vietnam.
IRENA’s 24/7 renewables: The economics of firm solar and wind report highlights how the lifetime costs of dispatchable clean energy that can be delivered around the clock are now at a lower cost than fossil fuels.
The report explores the firm-levelised costs of electricity (‘firm costs’), which measure lifetime costs associated with generating, storing and delivering reliable, dispatchable electricity, rather than intermittent power.
Firm costs for solar (combined with storage) now range from $54-82 per megawatt-hour (MWh) in most regions, compared to $70–85 per MWh for new coal in China and $100 per MWh for new gas globally.
Since 2010, total installed costs declined by 87% for solar PV and by 55% for onshore wind. Battery storage costs have also fallen, declining by 93% in the same timeframe.
Commenting on the report, United Nations Secretary-General António Guterres said: “The worst energy crisis in decades has exposed the true cost of fossil fuel dependence. But another path is now possible. Renewable power is increasingly the most affordable, reliable and secure option.
“Let us accelerate the transition, invest in energy infrastructure, and strengthen international cooperation to finally deliver clean, homegrown power to people everywhere.”
IRENA found that the costs of solar-plus-battery configurations across multiple countries have fallen from above $100 per MWh in 2020 to $54-82 per MWh. Costs are expected to reduce by a further 30% by 2030 and 40% by 2035 – this would bring costs below $50 per MWh for the best-performing sites.
As for wind, IRENA estimates for 2025 show that firm wind-plus-storage costs ranged from around $59 per MWh in Inner Mongolia to around USD 88-94 per MWh across Brazil, Germany, and Australia. IRENA predicts costs to reach as low as $49-75 per MWh in these markets by 2030.
The rise of 24/7 dispatchable clean power is also helping optimise constrained grid connections to reduce exposure to price volatility, the report claims. Hybrid clean energy solutions are also well-positioned to account for high electricity demands from artificial intelligence (AI) and data centres that require an uninterrupted supply.
As construction timelines continue to shorten, IRENA notes that projects are now typically built within one to two years, well ahead of new gas-fired alternatives in most markets.
IRENA Director-General Francesco La Camera added: “24/7 renewable power is now cost-competitive with fossil fuels. The long-standing argument that renewables lack reliability no longer holds. Today, renewables can deliver reliable, round‑the‑clock power. As oil and gas markets remain exposed to geopolitical shocks, including ongoing disruptions in the Strait of Hormuz, we must insulate our economies with resilient renewable systems.
“The economics of the entire energy system have shifted: the battery revolution has driven down costs while accelerating advances in storage. The advantage of renewables is not only economic but strategic, strengthening resilience, stability, and energy security in times of crisis.”
In related news, analysis from Mercom Capital Group found that total corporate funding for solar surpassed $11bn in Q1 of 2026. A total of 53 deals were issued, with investment increasing by 131% increase year-over-year.
Global Venture Capital funding for the solar sector in Q1 2026 came to $1.1bn in 17 deals, a 21% decrease compared to the same period in 2025.
