Renewable energy has emerged as a critical component in addressing global climate change, reducing dependency on fossil fuels, and promoting sustainable economic growth. This research paper examines the economics of renewable energy by conducting a comprehensive cost-benefit analysis and exploring recent market trends. By integrating quantitative data analysis with qualitative insights drawn from academic literature and industry reports, the study investigates the costs associated with renewable energy technologies, the long-term economic benefits, and the factors driving market trends in the sector. The analysis also considers policy instruments, technological advancements, and market dynamics that influence the competitiveness of renewable energy. Findings suggest that, despite high initial capital expenditures, renewable energy investments offer substantial long-term benefits, including job creation, reduced environmental impact, and energy security improvements. Policy recommendations are provided to support a smoother transition to renewable energy sources while mitigating risks associated with market volatility and regulatory uncertainties. This paper contributes to a nuanced understanding of the economic dynamics of renewable energy and offers actionable insights for policymakers and industry stakeholders striving to harness its full potential for sustainable development.