The United Nations has declared that renewable energy has reached a “positive tipping point,” with solar and wind power now cheaper than the lowest-cost fossil fuel options in most parts of the world, and costs continuing to fall. In 2024, nearly three-quarters of all growth in global electricity generation came from renewables, and over 92% of new capacity added was clean energy. A multi-agency UN report titled Seizing the Moment of Opportunity described this as a historic change. UN Secretary-General António Guterres called it the beginning of a new era, one fuelled by cheap, clean, and abundant energy.
Reports from the International Renewable Energy Agency (IRENA) show that solar energy in 2024 cost on average 41% less than the cheapest fossil fuel alternative, while onshore wind came in at 53% cheaper. More than 91% of renewable energy projects commissioned last year were less expensive than fossil fuel-based options. This was backed by Reuters, which also reported that lithium-ion battery storage prices have dropped by 93% since 2010, making it easier than ever to rely on solar and wind even when the sun isn’t shining or the wind isn’t blowing.
How it happened (and why it’s such positive news)
What’s happening now is the result of years of scaling up, investing in technology, and improving how renewables are produced and delivered. Solar module prices have fallen by about 85% since 2010, and the cost of onshore wind has dropped by 33% in that time. The UN’s report points to a reinforcing cycle: as renewables become more widespread, they become cheaper, which fuels even more adoption. It’s no longer about subsidies keeping the industry afloat, as renewables are standing on their own two feet.
Globally, the investment landscape has changed dramatically. In 2024, around $2 trillion (approximately £1.56 trillion) went into renewable energy, which is about $800 billion (£620 billion) more than was invested in fossil fuels, according to Associated Press. But this boom isn’t being felt evenly. The UN warns that in regions like sub-Saharan Africa, access to affordable financing remains a major roadblock. Even though clean energy has never been cheaper, not everyone can afford to tap into it without international support.
Despite this rapid progress, integration remains a challenge. That’s because, while the cost of generating electricity from solar and wind is lower than coal, the full system cost, including grid upgrades, storage, and back-up, can still push overall expenses higher, at least for now. However, most projections show that with ongoing improvements in battery technology and smarter grid systems, renewables will undercut even the most competitive fossil fuel setups by 2030.
This tipping point doesn’t just matter for the energy market. It has wide-reaching climate implications. As the UN’s climate team has stressed, the fact that clean energy is now the economically rational choice means we’re no longer delaying the energy transition because of cost. Stalling at this stage is no longer about affordability; it’s a policy choice. And for climate experts, that’s hugely encouraging.
The idea of a tipping cascade is also gaining ground. That’s when breakthroughs in one area, like falling prices, trigger progress in others, such as public support, infrastructure upgrades, and political momentum. The UN says that this chain reaction is already underway in many countries, accelerating the shift faster than expected. As more governments and companies commit to net-zero goals, renewables are becoming the obvious choice, not just for climate reasons, but because they make business sense.
Still, the world can’t afford to be complacent. Political changes, fossil fuel lobbying, and delays in grid development could all slow things down. But right now, the data is clear: solar and wind have not only arrived, they’ve taken the lead. And as long as the world stays on this path, the future of energy looks a lot cleaner, and a lot more affordable, than anyone dared hope just a decade ago.