Solar energy is positioned to become the dominant power source by 2035, driven by continued cost reductions and technological improvements, according to industry projections.

Solar panel costs are expected to decline by an additional 30% over the coming decade, building on years of price decreases that have made the technology increasingly competitive with traditional energy sources. This cost reduction is helping solar cement its position as a leading technology in global energy markets.

The expansion comes as governments worldwide are implementing more protectionist energy policies in response to ongoing energy security concerns. These trade barriers and domestic production incentives are creating new investment opportunities in the solar sector, particularly for companies with local manufacturing capabilities.

However, the growth of artificial intelligence and data centers presents a complicating factor for the energy transition. The massive power demands of AI infrastructure are expected to maintain demand for fossil fuel generation, even as renewable sources expand their market share.

The utility sector is also experiencing consolidation, with major companies like NextEra and Dominion pursuing large-scale mergers. These deals face regulatory scrutiny as authorities examine whether combining major utilities will benefit customers and avoid increasing electricity costs for consumers.