One of the most popular clean energy sources is becoming even more popular. A recent finding from the International Energy Agency (IEA) states that investment in solar power will overtake investments in dirty energy by the end of this year.
The IEA estimates a $2.8 trillion global investment in energy in 2023, with $1.7 trillion going toward clean energy (electric vehicles, renewables, and storage). Specifically, investments in solar power are expected to amount to over $1 billion a day this year.
This news means that clean energy will overcome investments in dirty energy sources like coal, gas, and oil for the first time.
A shift away from these fuels and toward clean energy is a crucial step to mitigate the effects of our overheating planet, as dirty energy has been the main contributor to climate change since the 19th century.
There are several reasons for this shift, as Fatih Birol, Executive Director of the IEA, lays out in the report (and told CNBC).
First, solar power is becoming cheaper to manufacture and install, largely thanks to government subsidies and decreasing production costs. Secondly, governments are using clean energy investment as a part of an energy security solution, as oil and gas resources can be politically contentious.
Lastly, programs and policies like the Inflation Reduction Act put significant investments behind renewables, suggesting a trend in governments moving energy away from oil and gas.
As Birol explained to CNBC, "Governments, investors, see that the next chapter of the industry is clean energy technology manufacturing — batteries, electric cars, solar panels — and they are providing huge incentives to investors."
The news gained attention from many officials working in energy, including the U.S. Secretary of Energy Jennifer Granholm, who retweeted the exciting news in celebration.
"For the first time ever, investments in solar power are expected to outpace oil in 2023," she wrote, along with a sun emoji.
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