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The Solar Boom: How 2025 Will Shape the Future of Renewable Energy

The Solar Boom: How 2025 Will Shape the Future of Renewable Energy
These are the trends shaping solar and renewable technologies. (iStock)

The coming year will be equally revolutionary and cautionary for energy professionals. Charged political landscapes and shifting monetary interests could make public and financial investment in renewable energies volatile. However, solar power will likely continue to see more interest, especially since it is one of the most well-researched and funded ventures in the clean energy sector.

Will 2025 deliver intriguing advancements with commercially viable applications? These are the trends shaping solar and renewable technologies.

Normalized Advanced Technologies

Many groundbreaking solar enhancements have been researched in the last several years, and some will become commonplace next year. Many will cost less and appeal to more customers. The industry must stay aware of public interest because it will change its workflow. It will alter what system designs it prioritizes and how to make them compatible with peripherals like energy storage or advanced communications technologies.

Bifacial Panels

Bifacial panels are the first notable player. Dan Smith, Vice President of Markets at DSD Renewables, backed this claim by saying,

“The biggest technological advancements we’re continuing to see is in the efficiency of solar modules, especially with bifacial panels, that are helping improve project performance across the industry.”

These could amplify floating solar efforts, as the radiation bounces off the water and generates more energy from underneath the panel. 

Perovskite

In addition, perovskite has piqued interest for several years, and it only gets better. South Korean makers have created tandem perovskite cells with 28.6% efficiency using commercially possible methods. While durability will still be a priority for experts in 2025, validating this efficiency is a massive step forward for these modules.

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Energy Storage Expansion

Critical infrastructure development has increased awareness about why energy storage expansion is essential in 2025. It makes grid modernization possible by supplementing intermittent generation. Additionally, it gives time for developing solar and other renewable energies to become more efficient for large-scale applications.

Molecule-based Solutions

Ashkan Sohja-Nia, Vice President of Strategy and Business at StormFisher Hydrogen, explains how this will progress by saying,

“The incoming [US] administration’s emphasis on bolstering economic resilience and enhancing domestic energy security in the United States is expected to support key aspects of the clean energy transition. Molecule-based solutions, such as e-methane and e-methanol, will play a critical role in the decarbonization value chain, offering the scalability and energy density required to achieve long-term climate goals. These technologies also deliver significant local benefits, particularly in states like Texas and Kansas, through job creation and economic development. We anticipate these factors will continue to serve as a tailwind for the industry.”

Solid-state Batteries

This will also be the year for energy storage because of a related technological boom — solid-state batteries. High-performance batteries, alongside lithium-ion types, will be in higher demand as consumption rises. These will go directly into power storage solutions, making solar valuable even when the sun is not out.

Virginia Klausmeier, founder and CEO of Sylvatex, agreed with this statement, noting,

“Looking ahead, regional supply chains will also strengthen energy resilience, enabling maintenance of reliable access to clean energy during crises or disruptions. As these efforts align with technological innovation, 2025 will be a milestone year in securing a more sustainable, self-reliant energy future.”

Microgrids and Decentralization

Microgrids are a niche that will become common in 2025. Supplementary technologies, like blockchain, will be the reason it becomes more trusted. Workers and customers interested in renewable energy will learn about blockchain, and the reverse could be converted to using decentralized power because it aligns with blockchain’s peer-to-peer-focused perspective on the finance world.

It will also make energy independence easier to oversee. Peer-to-peer energy trading will be secure and profitable for many, as blockchain technology tracks transactions in an unchangeable digital ledger. It provides transparent access to how much power is available and from whom. Losses will be minimal because many generators will be local, and every trade will be logged so the community can stay in touch with the microgrid’s performance and wellness.

Many people in blockchain communities may participate in carbon credits powered by this technology, too. Making it a staple of renewable power could invite this niche of customers into the world of decentralized energy independence.

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AI, Big Data and Cybersecurity

While many of these innovations are positive, solar will also balloon in 2025 because it must overcome the shortcomings tarnishing its reputation. Critical infrastructure is susceptible to cyberthreats of all kinds. With intermittency issues already a concern, energy workers must also avoid dealing with breaches impacting performance.

With artificial intelligence (AI) and similar technologies becoming a staple of every corporation, cybersecurity gaps need mending before expansion continues. The coming year is a monumental opportunity for solar to establish itself as a cybersecure fixture in critical infrastructure. 

Energy workers would be responsible for conveying why society must trust in these new technologies to ease reluctance. Enhancing cybersecurity will be a staple of all clean energy companies in 2025, or they will not be able to maximize the benefits of machine learning or data analytics.

Global Market Expansion

Solar is slowly becoming cheaper in every nation, including developing countries. This means it will be less concentrated worldwide, boosting density. However, there will also be a shift toward more local manufacturing and generation.

Dan Smith suggested the end of some struggles would be in sight, saying,

“The industry has begun to stabilize after experiencing supply chain disruptions and elevated project costs in 2024, with equipment lead times significantly improving and pricing finding a more predictable baseline. The domestic renewable energy supply chain is also continuing to grow, with more investments being made into expansion and facilities being built, but more production needs to come online in the next few years to ramp up. At the same time, there is uncertainty whether potential future policy changes from US Congress may halt or shift investments in domestic supply.”

It could also be more consistent than experts believe in 2025. Initiatives like the Clean Power Plan proposed by the U.S. Environmental Protection Agency could indirectly sway energy workers to stray away from fossil fuels, like coal, and move to cleaner sources of power. This plan forces power plants to cut carbon pollution by 30%, which is simpler with solar compared to coal or natural gas. The market will expand as workers are disenchanted by fossil fuels and encourage solar development. 

Domestic Production

Despite growth in the global market, a lot of it will happen by reshoring and bringing efforts closer to home. Makers will create panels locally with regional materials. 

Klausmeier expands by saying,

“Similarly, the development of domestic production for critical components like advanced battery materials will be a priority across North America, Europe and Asia. Policy shifts will complement this trend by incentivizing investment in domestic manufacturing and fostering collaboration between the private sector, governments and research institutions. However, the industry’s progress is increasingly driven by business pragmatism — ensuring stable, scalable operations while reducing exposure to external risks.”

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Sustainability Focus

The next stage of solar will consider the planet even more thoroughly. How could clean power be better for the Earth than it already is? Energy stakeholders will find more ethically sourced materials with greater efficiency. They will focus on carbon footprint reduction, environmental remediation of mined areas and enhancing equity for its employees. Advocacy for continued legislation will also be a necessary piece of this puzzle.

Smith affirms the Inflation Reduction Act’s influence on solar’s progress, stating,

“The IRA continues to be a critical foundation for momentum, having already enabled the development of projects all across the country and setting up the industry for a strong 2025 and 2026. Despite any potential policy changes, this legislation will continue to create opportunities and support projects in the years ahead. With utility rates across the country continuing to rise, distributed solar generation is even more attractive to new customers, offering better savings and a great way to hit sustainability goals.”

He adds: 

“At the same time, we’re also seeing more programs on the state level opening up for DG solar, such as community solar legislation which passed in Alaska in 2024, community solar legislation being considered in Ohio, Iowa, Michigan and other states, and DG program renewals or expansions passed or under consideration in Massachusetts, Maryland and New Jersey, leaving the industry optimistic that demand, and the ability to deliver valuable projects, will continue to grow. We remain hopeful that current programs and incentives will remain, but regardless, the industry will adapt to whatever comes our way.”

The Solar Future Is Now

Despite questions surrounding renewable energy legislation and incentives, experts are confident supply chain stabilization and technological innovations will push solar into a new era of productivity. Workers must notify stakeholders how important it is to keep momentum going. If enough of the sector believes in these technologies enough to implement them, then solar growth will continue.

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