Price of Solar Power to Match Fossil Fuels by 2015
June 18, 2008
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A new study released in the US predicts that the cost of solar power will reach parity with traditional fossil fuels by the year 2015. If correct, this will prove a great way for the nation to reduce their carbon footprint with the use of an entirely clean and limitless energy source.
The Utility Solar Assessment Study was produced by Clean Edge Inc., a clean technology research company.
The basis for the prediction is that in the next decade the cost of solar power will continue to drop, as it has been doing over the past few years. As well, the efficiency of solar cells will improve with increased research and development. Intel recently announced a new spin off venture to focus on solar energy, with an emphasis on improving efficiency in order to help customers cut their carbon footprint.
At the same time, oil prices keep setting new record highs, making conventional energy sources more and more expensive. The sad reality is that changes are only being made to reduce our carbon footprint now that there is this economic incentive to do so.
Currently, prices for solar energy are between 15-32 cents per kWh. The study expects that to drop to 8-18 cents by 2015, and to continue dropping to 4-8 cents per kWh by 2025. With the hope of generating 10% of American electricity from solar power by 2025, these projections are great news and will surely help the country cut it’s carbon footprint.
However, despite the drop in cost per kWh, the cost of installation remains high. To reach the 10% goal would require an annual investment of between $26 and $33 billion, for a total of roughly $500 billion by 2025. So the question remains how much are we willing to spend to cut our carbon footprint? Unfortunately that decision is left in the hands of businesses and politicians, not the rest of us.
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