The International Renewable Energy Agency has reported that solar and wind energy combined with battery storage have reached a major milestone in global energy economics, becoming cost-competitive with conventional coal and gas-based electricity generation.

According to the latest assessment by IRENA, firm-levelised electricity costs (LCOE) for solar power integrated with battery storage currently range between $54 and $82 per megawatt hour (MWh) in regions with strong solar irradiance. This represents a sharp decline compared to cost levels seen in 2020 and positions renewable-plus-storage systems as viable alternatives to fossil fuel generation.

In comparison, the cost of new coal-based power generation in China is estimated at around $70–85/MWh, while newly developed gas-fired power capacity globally exceeds $100/MWh, highlighting the increasing economic advantage of clean energy systems.

The report outlines the dramatic cost reductions achieved since 2010 across renewable energy technologies. Solar photovoltaic installation costs have fallen by 87%, onshore wind costs by 55%, and battery energy storage system costs by an extraordinary 93%, driven by advances in technology, economies of scale, and supply chain efficiencies.

IRENA projects that renewable energy costs will continue to decline further by 2030 and 2035, making solar and wind energy even more affordable and accessible. Wind power integrated with battery storage is also expected to witness substantial cost reductions across multiple global markets.

The findings reinforce the accelerating global energy transition, with renewables increasingly becoming the preferred choice for affordable, reliable, and sustainable electricity generation. As battery storage improves grid flexibility and reliability, solar and wind are no longer just clean alternatives — they are emerging as the most economically competitive energy sources worldwide.