Solar PV supplied roughly three-quarters of new renewable capacity added globally in 2025, according to a new IRENA report
Battery storage additions rose sharply last year as renewable generation expanded
It calls for accelerated grid expansion and flexibility to integrate the next wave of solar and storage
Global renewable energy capacity reached another record in 2025 with 693 GW, led by solar PV, but deployment still needs to accelerate significantly to meet the 11.2 TW goal for 2030 under the UAE Consensus, says a new report. The world’s cumulative installed renewable energy capacity reached 5.15 TW at the end of 2025.
Released by the International Renewable Energy Agency (IRENA), the COP31 Presidency and the Global Renewables Alliance, the report said 693 GW of renewable power capacity added in 2025 represents 15.5% annual growth.
However, the pace still falls short of what is needed to meet the UAE Consensus target of 11.2 TW of global renewable capacity by 2030. IRENA now estimates that an average of 1.204 TW of renewable capacity must be added annually between 2026 and 2030. This is higher than the 1.122 TW annual average it estimated in October 2025, when the calculation covered 2025 through 2030 (see World Must Add 1.12 TW Renewables/Year To Meet COP28 Goal).
Solar PV accounted for the largest share of new renewable capacity in 2025. IRENA counts about 513 GW of solar PV deployment last year, representing around three-quarters of all new renewable capacity and 12% more than in 2024.
Co-located solar and storage accounted for about one-quarter of utility-scale solar capacity commissioned globally in 2025, says the report citing Bloomberg New Energy Finance. It links the trend partly to falling daytime electricity prices and rising curtailment in some markets.
By the end of 2025, solar PV represented 46.3% of global installed renewable capacity, with 2,388 GW installed worldwide.
IRENA said solar capacity will need to double during 2026-2030 compared with the 2025 level to remain aligned with the 2030 objective.
While solar's relatively short permitting timelines, established supply chain and cost competitiveness support further deployment, the report writer call for policy frameworks to evolve alongside the pace of solar expansion.
Solar was also among the lowest-cost sources of new electricity in 2025. IRENA put the global weighted average levelized cost of electricity (LCOE) of solar PV at $44/MWh, compared with $33/MWh for onshore wind. Excluding China, the average solar PV LCOE was $55/MWh, and $51/MWh for onshore wind.
Storage becomes increasingly important
Battery storage is also expanding as renewable generation grows. Around 112 GW, or about 307 GWh, of battery storage capacity was added globally in 2025, up 48% from 76 GW added in 2024, according to the report.
China accounted for 61 GW of the additions, followed by the US with 18 GW and Europe with 16 GW. Together, these three markets represented nearly 85% of annual battery storage additions at the end of 2025.
IRENA said storage can absorb surplus renewable electricity and discharge it when needed, while also supporting grid stability and reducing congestion. Falling costs are strengthening the economic case for storage, it added.
The report said the cost of a fully installed and commissioned battery storage project declined by almost 30% between 2024 and 2025. Since 2010, costs have fallen by about 95%, from $2,634/kWh to $140/kWh.
Solar-plus-storage gains ground
The report also highlights the growing role of solar paired with storage as the costs of firm, around-the-clock renewable energy generation begin to undercut new gas-fired alternatives. At high-quality sites, the report claims the LCOE of solar-plus-storage at 95% reliability fell to $54-$82/MWh in 2025, down from more than $100/MWh in 2020. IRENA expects the cost to fall by another 30% by 2030 and 40% by 2035.
Grids remain a constraint
IRENA said faster renewable and storage deployment will need to be matched by investment in electricity grids and system flexibility. Grid expansion and modernization have not kept pace with renewable deployment, it added, contributing to connection queues and increasing pressure on infrastructure.
The report recommends regulatory frameworks that allow storage to be co-located with solar and wind, including shared grid connections. It also calls for incentives for storage alongside demand response, interconnections and other flexibility resources.
The report concludes that the 2030 renewable capacity target remains within reach only with a significant increase in annual deployment, supported by investment, infrastructure, policy frameworks, supply chains and skills.
The complete report titled Delivering on the UAE Consensus: Tracking progress toward tripling renewable energy capacity and doubling energy efficiency by 2030, is available for free download on IRENA’s website.
