Why Solar Power is Surging—and What it Means for Renewable Energy

The sun + cool technology = sustainable energy. A simple equation, right? Solar energy isn’t new—it’s been used since ancient times to heat homes and water. But in the past decade, advances in technology, dramatic cost declines, and urgent climate goals have transformed solar into one of the fastest-growing sources of renewable power. From rooftops to remote industrial sites to satellites in orbit, solar is proving to be a cornerstone of the clean energy transition.

Today, solar power is expanding at record speed. Just last month, The New York Times reported that every fifteen hours, enough solar panels are installed to generate the same amount of electricity as one coal-fired power plant. Global solar power capacity surpassed 2.2 terawatts (TW) in 2024, double the total from just two years earlier. This surge in solar power accounted for 81% of all new renewable energy capacity added globally, making it the fastest-growing renewable generation technology.

And it’s not just growing—it’s getting cheaper. It is now 41% less expensive than the lowest-cost fossil fuel. According to New Economy Canada’s Strong Signals in the Noise report, solar energy costs have decreased 90% since 2010 and are projected to fall another 31% by 2035.

While China leads the charge in solar expansion and India emerges as a key market, Canada is making its own mark, supported by strong policy commitments and tax incentives:

• $150 million in solar-focused investments through the federal $4.5B Smart Renewables and Electrification Pathways Program (SREPs), including projects in Alberta.
• $900 million from Enbridge for a 600-megawatt solar project powering Meta data centres.
• $200 million from the Canada Infrastructure Bank for the Oneida Energy Storage Project in Ontario.
• $80 million in federal funding for the Sādę Solar Power Project in Yukon to help reduce diesel dependence.

Numerous other projects are underway around the world, and forecasts suggest exponential growth in the years ahead.

The sun’s energy can be harnessed in two ways—by capturing its light or heat. 

The two most common forms of solar technology are photovoltaic technology and solar thermal technology.

Photovoltaic (PV) Technology

PV is the most widely recognized, versatile, and accessible form of solar technology, directly converting sunlight into electricity. Each solar panel is made up of multiple solar cells, typically composed of silicon. When photons from the sun’s rays strike these cells, they knock electrons loose, creating an electric field that generates a direct current (DC) of electricity. An inverter then converts this DC into alternating current (AC), which powers homes, businesses, and infrastructure.

Solar Thermal Technology

Instead of producing electricity, solar thermal systems capture the sun’s heat. Roof-mounted solar collectors absorb thermal energy and transfer it to a fluid (such as water or air), which can then heat buildings, provide hot water, or warm swimming pools. This technology is widely used in residential, commercial, and industrial heating applications.

Canada is home to multiple innovative companies advancing solar solutions. Foresight’s Ventures to Value Chains: Electricity report maps 245 ventures in Canada’s electricity value chain—of these, solar power ventures are the most represented form of renewable energy generation with over 23 mapped companies.

Notable examples include: 

• SolarSteam: A Foresight 50 honouree producing low-carbon industrial heat for manufacturing processes using solar thermal technology. 
• Daanaa: This Vancouver-based startup and Foresight 50 honouree is developing innovative semiconductor technology to improve the efficiency of solar energy systems. Their technology allows for better power management and can increase energy production.
• Solaires Entreprises Inc.: This BC company, also a Foresight 50 honouree, has developed next-generation solar cells by replacing silicon with an innovative, perovskite-based “solar ink.” Their technology aims to create flexible, lightweight, and highly efficient solar devices that are more affordable and sustainable than conventional silicon panels.
• CLIR Renewables: This BC Cleantech Award winner uses its intelligence platform to analyze and optimize the performance of solar projects. Their platform uses data from over 300 GW of global projects to provide insights and actionable strategies to improve energy production and mitigate risks for solar farms.
• LightLeaf Solar: Foresight 50 honouree LightLeaf Solar creates and sells ultralight, rigid solar panels. These panels are made from a rugged carbon composite and are specifically designed to be integrated into various vehicles, such as trailers, sailboats, and cars.

Despite its rapid rise, solar faces hurdles:

• Uneven global adoption: Some regions still lag in renewable integration, slowing global progress.
• End-of-life panel disposal: Most panels last about 25 years, and their disposal poses environmental challenges due to heavy metals like cadmium and lead.
• Recycling complexity: While panels contain valuable minerals such as aluminum, silver, and copper, recovering them can be costly and technologically challenging.

However, these challenges also present opportunities. Advancing solar panel recycling could reduce the need for new mining, recover valuable critical materials for electronics and renewables, and strengthen the circular economy. Increased R&D investment is key to making recycling cost-effective and scalable.