The future of solar energy depends on several factors
The future of solar power depends in large part on its cost. Critics of renewable energy complain in large part that coal and other fossil fuels are much cheaper. In fact, some utilities even claim that they cannot, in good conscience, raise rates for their customers in order to use solar power because they have a duty to provide the least expensive energy.
I’m wondering…. where do considerations of the planet come into play? Isn’t that a cost that needs to be considered?
Fortunately, some experts are predicting that grid parity – that is, the point at which solar power is equivalent in monetary cost to coal-based electricity – is about a decade away, and less in some regions. In addition, the cost of solar power is defrayed, in part, by tax incentives and projected increased property values. In fact, the time to reach the “break even” point for solar panels has decreased recently:
Grid parity has been achieved in some areas of the world
In a few places worldwide, grid parity has already been achieved. In California, for example, commercial solar panel rooftop systems are close to 45 cents per kilowatt-hour (kWh), due in part to the policies that set the price of solar power at times when PV technologies work best (middle of the day and during summer). Italy, too, is poised to get to grid parity for residential PV solar panel systems within a couple of years.
However, world-wide, we may still have to wait until the cost of solar power has dropped substantially enough to be price-competitive with our cheap coal and gas sources.
You may be wondering, as I was, if there is anything we can do to speed up the future of solar power. In other words, how can the relative cost of PV technology be brought in line with the usual fossil fuel resources on which the world relies?
Perhaps we should take a look at the playbook of Greece. This high-subsidy nation enjoys heavy private investment in solar power, and those that do so are smiling all the way to the bank. In one blog post, the author notes that investors in Greece are making a healthy profit, as measured by the internal rate of return (IRR):
In fact, in subsidized markets, IRRs can reach well in excess of 10 percent, said Ted Sullivan, senior analyst at Lux Research, and lead author of the report. And that is “actively fueling [new solar] demand,” he added.
But, where solar subsidies are not offered, the industry is unable to get off the ground.
Solar power cost is coming down
Personally, I believe the future of solar power is within our grasp. That being said, it is still very dependent on solar subsidies. As governments continue to invest towards a fossil-fuel-free tomorrow, major manufacturers are also making advancements to reduce costs and increase production.
Grid parity is expected to occur in 5-10 years. We need only be patient and diligent in advancing the ball when it comes to solar panel technology and encouraging people to continue investing – both public and private funds.
Tags: break even point solar panels, critics of renewable energy, future of solar power, grid parity, solar power cost, solar subsidies
July 14th, 2009 at 7:25 am
Very interesting article, and I agree that the costs involved are very high. Alot of people do not realize the incentives that alot of local government is offering. Anothe option to consider is installing your own solar panels, this is beginning to take off and proving to be very cost effective
August 30th, 2009 at 1:24 am
i would like to invest Solar to electricity for large scale especialy in Thailand
December 3rd, 2009 at 12:24 pm
Residential solar electric systems
You can make a simple solar panel for as little as $200 and sell them for $500!
You can profit over $300 for every solar panel you build.
After a bit of practice you can build up to 5 solar panels every week (or even more)
and sell them for a profit of $300 each. That's a weekly profit of $1500 !!!
Solar power for houses
For more datailed information please visit: http://tinyurl.com/ygcsoay
February 1st, 2010 at 2:52 pm
save the trees
February 1st, 2010 at 2:53 pm
i hav a dream
February 1st, 2010 at 2:55 pm
my teeth hurt u guys should try wooden teeth
February 1st, 2010 at 2:56 pm
im gay
May 2nd, 2010 at 8:53 pm
lol good to know
May 28th, 2010 at 3:23 pm
I see that you have some spelling issues. Alot of people, it is spelled A lot. Second, Anothe option to consider, it is spelled Another with a "r". But your comment i do agree on!
March 15th, 2011 at 6:21 am
wow this needs more info on solar energy’s future outlook!!!!!!!!!
May 9th, 2011 at 1:38 am
nice post.I know solar is very important in future.It has many benefits.As of now, solar power and solar related devices are expensive. But it may be reduced if most of the people start using it.
September 7th, 2011 at 2:25 pm
Solar panels market going to down in india,,…because of here not a local plant manufacturer and not available here row materials also..Here all indians invester bring old technology of PV plant..which not capable to get high efficiency panels.here all things is emported not own anything else..so that here pv panels cost rising comparision to china..
India should own new technology and govt. support also to be done in major facilities..
Go india go green and make easy world!!!
Thanx
October 5th, 2011 at 5:32 pm
This is awesome I like how solar power works I’m having my highn school science project
October 29th, 2011 at 2:31 pm
I have to say that Solar Panels are the thing of the future. Their
benefits will surely have a lot of gain to individuals, & will save
them a lot of Money in the long term. So many Folks are struggling
financially in this Economic crisis, & need to find a way to cut back.
When the right Solar Panel is used, it is very effective.
This Website below is just as useful:
Using Solar Panels