ABSTRACT The concept of a renewable energy transition has emerged as a key factor in achieving sustainable development goals worldwide, especially goals 7 (affordable and clean energy) and 13 (climate action). Despite growing concern about the importance of investing in renewable energy to foster development, little is known about the role institutions play in facilitating efficient renewable energy investments to ensure sustainability in developing nations. This study examines the role of solar energy investment and energy security in the economic growth of the BRICS economies from 2000 to 2024, with institutional quality as the conditioning variable. The study uses Driscoll–Kraay standard errors (DK) and panel standard error correctors (PSCE) to address issues arising from cross‐sectional units in the model. The results show that the incentive to invest in solar energy has a strong, positive influence on economic growth. However, energy security variables, measured by access to electricity and net energy imports, have shown an unstable direct relationship. Institutional variables do not affect economic growth but serve as modifiers of the stimulus for solar energy investments, thereby shaping the translation into economic outcomes. This research is relevant to the body of literature on sustainable development because it shows that transitioning to clean energy involves more than just investments and that such transitions can be understood institutionally. In terms of policy implications, this research suggests that achieving the Sustainable Development Goals cannot be accomplished without improving governance systems.
Adam et al. (Mon,) studied this question.