May 15, 2009

Is solar cost competitive?

Not quite yet, but it's coming:

"The economics of solar power are changing rapidly. And if the Prometheus Institute for Sustainable Development (PI) is right that solar module prices will fall more than 50% by 2012, grid parity will be achieved across many parts of the US."

http://setenergy.org/2009/05/11/much-of-us-to-enjoy-solar-grid-parity-by-2012/

They assume rising electricity prices (which is pretty realistic, with CO2 pricing apparently on the way), but we don't need to focus on that.

The fact is, that PV grid-parity is beginning to emerge right now for a very few specific applications and locations. This will just expand over the coming years, and the assumption of rising power prices will only change the inflection point by 2-3 years.

Also, keep in mind that this is the unsubsidized price, which doesn't reflect any of the externalities, like CO2, sulfur, etc, etc.

The fact is, that solar is here: as production expands, prices will continue to fall, and demand will rise explosively.

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