Solar power was the fastest-growing source of new energy worldwide last year, outstripping the growth in all other forms of power generation for the first time and leading experts to hail a “new era”.

Renewable energy accounted for two-thirds of new power added to the world’s grids in 2016, the International Energy Agency said, but the group found solar was the technology that shone brightest.

New solar capacity even overtook the net growth in coal, previously the biggest new source of power generation. The shift was driven by falling prices and government policies, particularly in China, which accounted for almost half the solar panels installed.

The Paris-based IEA predicted that solar would dominate future growth, with global capacity in five years’ time expected to be greater than the current combined total power capacity of India and Japan.

Dr Fatih Birol, the executive director of the IEA, said: “What we are witnessing is the birth of a new era in solar photovoltaics [PV]. We expect that solar PV capacity growth will be higher than any other renewable technology up to 2022.”

The authority, which is funded by 28 member governments, admitted it had previously underestimated the speed at which green energy was growing.

The amount of renewable energy capacity forecast globally in 2022 has been revised upwards on last year’s forecast, driven by the IEA expecting a third more solar in China and India.