Solar to account for half of 2025 clean energy investments

It is expected to surpass gas and possibly coal capacity.

Solar energy will continue to lead the transition to renewable energy this year as clean energy investment is expected to surpass those in upstream oil and gas for the first time.

According to S&P Global, solar will account for half of all cleantech investments and two-thirds of installed megawatts.

The overall growth in investment will be driven by the increase in solar capacity, which is projected to surpass that of gas and possibly coal. At least 620 gigawatts of new solar and wind capacity are coming online which is equivalent to the power systems of India, Pakistan and Bangladesh combined.

Battery energy storage systems will also surpass pumped hydro storage in installed capacity.

This build-out will require around $640b, matching the projected spending on upstream oil and gas, including liquefied natural gas liquefaction and pipelines.

Overall, cleantech energy supply spending is expected to reach $670 billion in 2025.

“This shift represents a geographical pivot from hydrocarbon-producing nations to regions with rapidly growing power demand and a transition from centralized energy projects to more distributed investments,” S&P Global said.

However, the total investment still falls short of the levels needed to meet the goal of tripling renewable capacity by 2030.