The sun is set to shine on the solar industry for years to come, according to the latest research from the International Energy Agency.
In a prediction in its latest annual World Energy Outlook, the IEA said renewable energy will overtake coal as the primary source of electricity generation by 2025.
By 2030, it predicts solar photovoltaic (PV) and wind power will account for about 30% of capacity by 2030 compared to 8% last year.
Solar PV capacity will be especially strong and grow by an average 12% a year, the IEA forecast in the report today.
“Based on today’s policy settings, it is on track to set new records for deployment every year after 2022,” said IEA executive director Fatih Birol in the report.
Tumbling costs of production have driven the rise in solar power said the IEA, making it a cheaper option than coal or gas in many countries.
The agency noted that renewables were the only source of energy that continued to grow in 2020 adding that if even stricter carbon emission targets were introduced, solar might grow even quicker.
However, the switch to renewable generation has yet to see carbon emissions drop and the IEA warned that investment will be needed in grid networks to handle the growth.
There are several London-listed solar energy funds available to investors, including NextEnergy Solar Fund Ltd (LON:NESF), Bluefield Solar Income Fund Ltd (LON:BSIF), Foresight Solar Fund Ltd (LON:FSFL) and US Solar Fund PLC (LON:USF).