Power from solar panels is much closer to price competitiveness with fossil fuel-generated electricity than many policy-makers and investors realize, according to Bloomberg New Energy Finance.
Many decision-makers have yet to catch up with the improvements in the economics of solar power from recent reductions in the cost of the technology, a working paper released by the London-based research firm said today.
Global solar installations surged four-fold the past three years, driven by subsidies and lower technology costs. Average panel prices have dropped almost 75 percent in the period, making sun power competitive with daytime retail prices in at least five major economies including Germany, the paper said.
This competitiveness is often underestimated because inadequate metrics are used to compare the costs of different energy sources. It has major implications for policy and investment decision-makers, the report’s authors from seven organizations and companies said.