Guest author: Daniel Domingues, Founder & CEO, Planno
We hear it all the time: renewable energy has become cheaper than fossil fuels. In fact, the International Renewable Energy Agency (IRENA) in 2025 reported that a total of 91% of renewable energy projects are cheaper than fossil fuel alternatives. That same report found solar photovoltaics (PV), otherwise known as solar power, to be 41% cheaper.
And now, a study released in January by the research department of the European Commission has found that 40% of European power needs could be met by rooftop solar alone by 2050.
Using the game-changing technology of geospatial AI, the researchers drew on a comprehensive database of three-dimensional, geospatial information of all buildings across the European Union (the Digital Building Stock Model R2025, or DBSM R2025). From this, they digitally mapped out the entirety of Europe’s building landscape.
Ultimately, by implementing a methodology that considers factors such as roof slant degree, the researchers were able to determine the number of viable rooftops across the European Union for hosting solar panels.
They found that residential buildings could host about 79% of total PV capacity, while non-residential (i.e. commercial and industrial) buildings could host about 21% of that total.
Fossil fuels are more volatile than ever
But if renewable energy is overwhelmingly cheaper than fossil fuels, and solar power is one of the cheapest alternatives available, and if we know Europe’s rooftops have the capacity to host such a massive amount of PV — why are energy prices still so expensive?
Despite massive inroads made in the renewable energy sector, fossil fuels are still king, and in 2026, we’re experiencing the very real downsides of that.
As we face an energy crisis based on the old fossil fuel system, the need to transition to renewables has never been more clear.
It turns out that is easier said than done, though. We may have the technology and infrastructure at our hands, but implementation remains a logistical problem.
Australia is a global leader in solar PV
Some countries have figured it out. Although widespread use of solar panels in Australia may be more obvious than elsewhere due to optimal weather conditions, the question of logistics remains something the country has successfully contended with.
Solar in Australia has grown staggeringly fast — in 2015, Australia was producing from just over 5 gigawatts of energy from solar, whereas in 2025, this number had grown to over 45 gigawatts.
The country is now a global leader in solar power, with PV energy making up 21.5% of the total energy mix as of 2025
Two major factors contributed to the Australian solar boom: price and policy.
As the price of oil and gas became increasingly unreliable, the price of solar energy continued to drop.
Today, residents can expect to save approximately $1,500 AUS (about $1,000 USD) per year on energy costs. Meanwhile, the Australian government made solar uptake by businesses and residents additionally attractive with their Small-scale Renewable Energy Scheme (SRES), reducing upfront costs by about 30%.
European policy is catching up, but logistical issues persist
In Europe, solar energy has also made inroads. In fact, PV makes up a notably large part of the energy mix in countries like Italy, Spain, and the Netherlands.
Germany, meanwhile, is a top five global leader in solar power capacity — the country’s solar power installed capacity stood at over 81 gigawatts as of 2023, behind only Japan, the United States, and China.
Starting on May 29, 2026, a European Commission regulation mandates that all new buildings must be designed for solar energy generation, where and when viable.
Still, as solar power continues to take over larger parts of Europe’s energy mix, new problems arise.
According to the association Solar Power Europe, issues like grid congestion and slow permitting run the risk of stalling PV progress.
Towards a new paradigm: how technology is making solar inevitable.
As an energy crisis with no end in sight looms before us, renewable energy has never been a more obvious choice.
At the 2026 Green Growth Summit in March, UNFCCC Executive Simon Stiell emphasized as much: “Sunlight doesn’t depend on narrow and vulnerable shipping straits, wind blows without massive taxpayer-funded naval escorts,” he said. “Renewable energy allows countries to insulate themselves from global turmoil and to side-step might-is-right politics.”
Logistical challenges remain, but market-readiness, region-wide policies, and new AI technologies have made solar power not just an ethical choice, but a smart financial investment, too.
Early movers who treat rooftops as energy assets in their own right will see both near-term and long-term returns, especially in the face of a volatile global power market.
Daniel Domingues is the founder & CEO of Planno, an AI-powered prospecting platform for solar companies.
