Solar hits 8.7% of global power, but fossil fuels still grew faster in 2025

Solar power generation grew 30% in 2025, reaching 8.7% of global electricity production. That figure, drawn from the Energy Institute's 2026 Statistical Review of World Energy, is striking on its own. The problem, according to both the Financial Times and Forbes reporting on the same dataset, is that total energy demand grew faster still, leaving fossil fuels not just intact but larger in absolute terms than the year before.

The Energy Institute, a London-based body, released the 75th edition of its Statistical Review, the industry benchmark formerly published by BP for more than 70 years, in partnership with Ember and in collaboration with KPMG and Kearney. The report's central finding is blunt: the global energy system is not yet in transition so much as it is in expansion, with clean energy added on top of a fossil fuel base that is itself still growing.

The arithmetic problem at the heart of decarbonization

Global total energy supply rose from 592.2 exajoules in 2024 to 600.3 exajoules in 2025, an increase of about 1.4%, according to Forbes contributor Robert Rapier's analysis of the Statistical Review data. Renewables grew nearly 10% in percentage terms, an impressive pace by any measure. But in absolute volume, renewables added roughly 3.2 exajoules while total demand grew by approximately 8.1 exajoules.

That gap is the structural challenge. Clean energy is not failing to grow. It is failing to grow fast enough to simultaneously cover new demand and displace existing fossil fuel use. Combined fossil fuel supply rose by about 4.6 exajoules in 2025, accounting for more than half of the total increase in global energy supply, per Rapier's Forbes reporting.

Fossil fuel dominance by the numbers

In 2025, oil remained the world's largest single energy source at 201.0 exajoules. Coal rose to 166.0 exajoules, and natural gas climbed to 150.7 exajoules. Together, the three fossil fuels supplied approximately 518 exajoules, or roughly 86% of global total energy supply, according to Rapier's Forbes analysis of the Statistical Review. Renewables, despite their rapid growth, accounted for about 5.9% of total supply. Nuclear contributed about 5.2%, and hydroelectricity about 2.7%.

The share figures illustrate the percentage-versus-absolute-volume problem that enterprise energy planners confront. A technology growing at 10% annually from a small base still contributes a modest slice of a very large pie. Closing that gap requires either dramatically faster clean energy deployment, slower demand growth, or both, none of which can be assumed in a multi-year procurement horizon.

Solar's milestone and what it does, and does not, mean

The 30% growth in solar generation reported by the Financial Times, citing the Statistical Review, is among the headline figures from the report and represents a genuine structural shift in the electricity sector specifically. Solar reaching 8.7% of global power is a credible milestone. But power generation is a subset of total energy. Industry, transport, and heating still run overwhelmingly on fossil fuels, and electrifying those sectors at scale remains a longer-term proposition.

The Financial Times also noted that even within power markets, fossil fuel dynamics can reassert themselves quickly. Britain's summer heatwaves reduced solar and gas plant efficiency simultaneously, and high river temperatures forced some French nuclear units offline in June, cutting cross-Channel electricity exports. Those operational ripple effects matter for energy managers with European facilities or supply chains.

What the data signals for enterprise energy strategy

For operations and procurement teams, the 2026 Statistical Review data points to a market structure that will remain mixed for years. Renewable power purchase agreements and corporate clean energy commitments continue to make financial and reputational sense, and solar's cost trajectory supports further investment. But the grid behind those commitments, in most regions, still runs primarily on fossil fuels, and commodity price exposure has not disappeared.

Carbon accounting is another implication. As Scope 2 and Scope 3 reporting frameworks tighten, the gap between market-based emissions accounting (which credits renewable certificates) and location-based accounting (which reflects actual grid mix) will widen in markets where fossil fuel share remains near 86%. That discrepancy is increasingly visible to auditors and counterparties.

The next editions of the Statistical Review will likely show whether the 2025 figures represent a plateau or an inflection. Rapier noted in Forbes that he plans to examine the oil, natural gas, coal, and CO2 emissions data from the report in depth over the coming weeks, meaning more granular operational signals are forthcoming from the same dataset.

What this means for your team

• Re-evaluate location-based vs. market-based carbon accounting: with fossil fuels at 86% of global supply, grid-average emissions factors in most regions remain high, which affects Scope 2 disclosures and supplier scorecards.
• Stress-test multi-year energy contracts against continued fossil fuel price volatility: the 2025 data shows fossil fuel demand rising, not falling, so commodity exposure in procurement portfolios has not structurally diminished.
• Accelerate on-site or behind-the-meter generation where possible: solar's 30% growth curve and improving economics make direct generation increasingly competitive against grid power for large industrial facilities.
• Monitor regulatory trajectory on carbon reporting: as the gap between clean energy growth rates and fossil fuel market share remains wide, disclosure frameworks are likely to tighten scrutiny on claimed emissions reductions.