Solar Set to Become World’s Top Power Source by 2032, But Battery Storage Steals the Spotlight

Breaking: Solar Power to Overtake All Forms of Generation Within a Decade

Solar photovoltaic installations are on track to become the largest electricity source globally by 2032, according to BloombergNEF's (BNEF) latest New Energy Outlook. The report, released today, describes a "much changed" global energy landscape reshaped by energy security fears and the rapid adoption of cheap solar panels and batteries.

"We are witnessing an unprecedented acceleration in solar deployment, driven by cost reductions and policy support," said Dr. Elena Torres, BNEF's lead analyst for the outlook. "By 2032, solar will surpass coal, gas, and wind to become the single largest power generator."

Battery Storage Emerges as the Game-Changer

While solar takes the lead, BNEF highlights battery storage as the "big mover" in the energy transition. The outlook projects that global battery installations will increase sixfold by the end of the decade, enabling higher renewables penetration and grid stability.

"The real story here is not just solar's dominance, but the explosive growth of batteries that make that dominance possible," Torres added. "Storage is the critical enabler for a reliable, clean power system."

Background: Energy Security and Cost Plunges Fuel the Shift

The report's findings stem from two key drivers: heightened energy security concerns following geopolitical disruptions and the dramatic fall in solar and battery costs. BNEF notes that solar module prices have dropped by over 80% in the past decade, while battery pack costs have fallen by nearly 90%.

"Countries are increasingly viewing renewables as a way to reduce dependence on imported fossil fuels," said Torres. "Cheap solar and storage now offer a compelling economic and security case that didn't exist a few years ago."

What This Means: A Reshaped Global Energy Landscape

The shift will have profound implications for utilities, investors, and policymakers. By 2032, solar and batteries together will account for over 35% of global electricity generation, up from about 10% today. Coal and natural gas are projected to see their shares decline sharply.

"This is a seismic change for the power sector," Torres emphasized. "Grid operators must prepare for a system dominated by variable renewables, with storage providing the flexibility needed to keep the lights on."

BNEF also warns that without massive grid investment and permitting reform, the transition could stall. Read our analysis of grid readiness concerns in the related section.

Grid Challenges Ahead

Despite the positive outlook, BNEF cautions that existing grid infrastructure is not ready for such rapid change. Congestion, interconnection delays, and lack of transmission lines could limit solar and battery deployment.

"The technology is ready; the grid is not," Torres said. "Policymakers must fast-track grid modernization to avoid bottlenecks."

BNEF's New Energy Outlook 2025 is based on country-by-country modeling of power, transport, and industry sectors, covering 70% of global energy demand.