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Solar Energy Revolution: The $170 Solution Transforming Global Power

Financial Times Companies •
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In a rare piece of global good news, solar power is finally taking off worldwide, driven by plummeting prices rather than environmental concerns. The technology now accounts for three-quarters of all new power plant capacity globally, with Elon Musk calling it "everything" compared to other energy sources. In developing regions, basic home systems using Chinese photovoltaic panels start at just $170, allowing people to install lights and charge phones without waiting for unreliable state infrastructure.

Solar prices have dropped 99.3% since 1975 and 95% since 2007, with costs continuing to fall as China exports surplus panels to Africa. Battery storage costs have plunged 93% since 2010, making the technology even more viable. Unlike fossil fuels, solar provides free daily fuel after installation and won't spike due to geopolitical conflicts. The technology spreads fastest in regions with weak state capacity, as people bypass waiting for large-scale power plants or grid connections.

Sub-Saharan Africa represents solar's biggest opportunity, where half the population lacks electricity but sunshine is abundant. The region currently generates 30% less solar electricity than the Netherlands, but African imports of Chinese panels jumped 60% last year. Smart governments can accelerate adoption through cheap loans, technician training, and reduced red tape. While solar can't replace all fossil fuels immediately, its bottom-up, democratic nature makes it the most promising path to cutting carbon emissions through cheap green tech that people adopt for purely economic reasons.