Solar power costs have fallen by 87%, and battery storage costs by 85%, according to a new study.

 An article in the journal Energy Research & Social Science by the Berlin-based Mercator Research Institute on Global Commons and Climate Change (MCC) compares the findings from innovation reports with standard climate transition scenarios based on standard models. The researchers found that clean energy ultimately will change the energy game despite the continued use of fossil fuels and biomass in the near future.

 While the study focuses on solar and battery storage, the researchers note that wind power, heat pumps, and other clean technologies are also experiencing sharp price drops.

 As technology advances, solar and battery storage become more efficient and smarter. As a result of global efforts to limit global warming to well below 2C, both private and public financial backing and government policy support are spurring the global increase in production of solar components and battery storage. As a result, clean energy prices are plummeting as a result of economy of scale.

Electricity prices drop when clean energy is deployed. Lead author Felix Creutzig of the MCC said:

“Some calculations even suggest that the world’s entire energy consumption in 2050 could be completely and cost-effectively covered by solar technology and other renewables.

This is an extremely optimistic scenario – but it illustrates that the future is open. Climate science, which provides policymakers with guidance in its scenario models, must reflect technical progress as closely as possible. Our study is intended to provide input for this.”

 According to the study, battery storage currently costs less than $100 per kilowatt hour, a significantly lower amount than previously predicted for 2030 in a study from two years ago. They predict that the price premium for battery storage will decrease from its current rate of 100% to only 28% by 2030. In fact, experts project that by 2050, there will be a potential global supply of 63,000 terawatt hours of solar energy – twice the amount of clean energy currently produced by coal. Additionally, research shows that 80% of private investments in new energy capacity are now focused on non-fossil fuel sources. Despite these advancements, the persistence of coal can be attributed to factors such as job preservation and political constraints rather than financial viability. MCC Applied Sustainability Science working group leader and co-author of the study, Jan Minx, commented:

“New scenario models, some of which are starting to be explored, are likely to demonstrate in the foreseeable future that the global climate transition might not be as expensive as previously assumed, and may even be cost saving – provided it is finally tackled.”

Greenhouse gas emissions are higher than ever and the measures taken so far are too weak, but in this politically difficult situation, technological progress provides a ray of hope.