IEA Report 2025: Solar PV Contributes the Largest Share to Global Energy Growth in 2025 – Battery Storage with Record Expansion

Why It Matters

Solar’s dominance and rapid storage deployment signal a decisive shift toward an electrified, renewable‑heavy power system, reshaping investment priorities and grid planning worldwide.

Key Takeaways

• Solar PV contributed >25% of global energy growth in 2025.
• Battery storage added 110 GW, fastest‑growing power technology.
• Global electricity demand rose ~3%, double total energy growth rate.
• EV sales topped 20 million, representing one‑quarter of new cars.
• Natural gas accounted for 17% of energy‑supply growth, second place.

Pulse Analysis

The IEA’s 2025 outlook underscores a turning point for the global energy mix. While total primary energy demand eased to a 1.3% rise, electricity consumption accelerated to roughly 3%, driven largely by the rapid rollout of solar photovoltaics. For the first time, solar accounted for more than a quarter of all energy‑supply growth, overtaking natural gas and highlighting the sector’s scaling momentum across both developed and emerging markets.

Equally striking is the surge in battery storage, with 110 GW of new capacity installed in 2025—an expansion that outstrips any single year of gas‑fired plant construction. This growth reflects falling battery costs, supportive policies, and utilities’ need for flexible resources to balance intermittent renewables. Grid operators are increasingly relying on storage to provide frequency regulation, peak‑shaving, and backup power, which reduces reliance on fossil‑fuel peakers and improves overall system resilience.

The broader implications extend to transportation and emissions pathways. Electric‑vehicle registrations surpassed 20 million, now comprising about 25% of all new car sales, amplifying electricity demand and reinforcing the need for clean generation. Combined with solar’s 600 TWh of additional output, the renewable surge is displacing coal from the generation mix, accelerating decarbonization goals. Policymakers and investors should view these trends as a signal to prioritize solar projects, storage solutions, and EV infrastructure to capture the next wave of growth in a rapidly electrifying economy.