Cheap Solar Energy Horizon Is Near

Anyone you talk to about using sustainable, environmentally friendly energy sources is going to agree they are a great idea.

It’s impossible not to agree with the theory that sustainable energy is a good idea.

Unfortunately acting on the theory is another story.

People are cheap, solar needs to be cheaper.

Whether we want to admit it or not we can see the average North American household is more concerned with paying their bills than the environmental impact of their electric bill.

Right or wrong, it makes sense.

There are pressing economic concerns, paying your mortgage, feeding your family, staying afloat.

These are issues that have long kept alternative energy on the fringes, for rich eccentric folks and corporations able to absorb the upfront cost and reap the longer term benefit.

“We expect electricity prices worldwide to double over the next 10-15 years making the case for solar grid parity even stronger.”

The Deutsche Bank Estimate on solar power grid parity pricing.

Deutsche Bank Estimates

Keep in mind this price parity is coming in a time of relatively cheap oil. So countries like Saudi Arabia will have a long way to go before it makes economic sense.

Solar energy prices change the game.

According to new solar power reports from Deutsche Bank we may be reaching the horizon where the average person can see the obvious economic benefits and “go green” with solar.

“Unsubsidized rooftop solar electricity costs between $0.08-$0.13/kWh, 30-40% below retail price of electricity in many markets globally. In markets heavily dependent on coal for electricity generation, the ratio of coal based wholesale electricity to solar electricity cost was 7:1 four years ago. This ratio is now less than 2:1 and could likely approach 1:1 over the next 12-18 months.”

If this movement continues, there should be ripe opportunities for companies in the solar space to more easily sell the long term value proposition of solar to the average commercial and residential consumer.

It’s easy to say you want to live on sustainable energy, but it’s easier to act on when it becomes cheaper than the alternative.

 

Solar power prices coming down to the point sustainable power makes sense!