Solar set to overtake all power sources by 2032, report says

Battery storage capacity is expected to reach 3.8TW by 2035.

Solar energy is poised to become the world’s largest source of electricity by 2032, supported by lower costs, technology improvements, and surplus manufacturing capacity, according to BloombergNEF’s New Energy Outlook 2026.

It also projects rapid growth in energy storage, with global capacity rising to 3.8 terawatts by 2035 from 223 gigawatts in 2025, which will support higher shares of variable renewable generation.

The BloombergNEF report said recent energy market shocks exposed volatility in fossil fuel supply chains, with countries responding by accelerating deployment of clean technologies that reduce exposure to energy commodity imports.

Its Economic Transition Scenario said electricity will meet two-thirds of new energy demand over the next 24 years, whilst natural gas will supply about 25%.

The report highlighted differences in regional transition pathways, citing China’s move to make electricity the dominant final energy carrier by 2023.

It projects coal’s share of China’s power generation, which accounted for 54% in 2025, will fall to 19% in 2035, and 7% by 2050.

BloombergNEF forecasts electricity will also overtake oil and coal in India by 2041, whilst Europe will reach that point by 2043, and the US by 2047.

It added that achieving 1.5C is no longer feasible due to persistently high emissions and continued investment in emissions-intensive assets, with peak warming reaching about 1.8C under its updated Net Zero Scenario.