The Structural Solar Surge

Goldman Sachs

Research

15 Pages

Goldman Sachs analyzes the unprecedented global boom in solar power, which has become the fastest-growing electricity source in history. The report argues solar’s surge is structurally driven by cost declines, zero fuel costs, and modularity, but highlights volatility, reliability risks, and policy shifts as key constraints.

As of July 27, 2025.

Key Takeaways

Rapid growth: Solar provided 8% of global electricity in the past year, reaching 2,129 TWh in just 11 years.
Cost advantage: Solar panel costs fall 20% with each doubling of output, outpacing all other investment goods.
Grid challenges: Negative power prices rose above 25% of hours in South Australia by 2024, underscoring volatility risks.
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