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Why Is Solar Attracting $500B Every Year

chamath.substack.com · saved by 1 readers

In 2025, the energy landscape hit a historic inflection point. Solar now attracts ~$500B in investments each year, more capital than all other electricity sources combined. What happened?

In 2025, the energy landscape hit a historic inflection point. Solar now attracts ~$500B in investments each year, more capital than all other electricity sources combined. Last year, the world installed more new solar generation than coal, gas, nuclear, wind, and hydro put together. While the International Energy Agency spent the last two decades underestimating solar growth, costs have fallen by 90%, and annual installations have grown exponentially. What happened? Extraction vs Manufacturing Traditionally, energy relied on extracting finite fuel from the Earth. In extraction, ongoing…