Wednesday, April 25, 2012

Solar Reaches Grid Parity In 200 Utility Service Territories

Reaching grid parity is the Holy Grail--solar priced at the same or less than electricity from the gird-- for the solar industry.  Yet, the grid price varies enormously around the USA, depending on the utility service territory, where one is located, so there is no one grid price with which to reach parity.

Indeed, utility electricity or grid prices can vary by 100%, and differences are even 50% or more among utilities within the same state.  For example, in North Carolina, most residential electricity consumers pay about 10 cents per kilowatt-hour, but some pay as much as 16 cents per kilowatt-hour.

The sharp drop of solar prices to below $3 per watt, even without the federal tax credit, means that solar has reached grid parity in 200 out of 1,200 utility service territories, according to Jigar Shah.

At the rate that solar pricing to continues to fall, solar should be at grid parity in more than half of the country by 2015 or with the national average price of grid power. That will will send shockwaves through the US energy industry, unleashing major creative destruction.

1 comment:

  1. Fabulous news. Here in the UK, the government of our prime minister David Cameron, ( - think of an even posher Tony Blair, even more superficial, even more mendacious, and on the right) is doing the bidding of the utility companies who have 50 fulltime secondees working day by day alongside public servants in our energy ministry. Fantasy statements dribble from ministers' lips about securing 22 Gw of solar by 2020 ( - the UK currently has 1 Gw installed -). At the same time they try to enact hurried, even retrospective cuts to subsidies, - we've had 5 'reviews' in 24 months, one ruled illegal by English court. Dismay & uncertainty about solar are sown in homeowners & investors' minds, making monthly installations boom & bust in series of jagged sharks' teeth. Last month's installations were the lowest for 16 months; 4,000 installation firms fought for less than 3,500 domestic jobs. Just what happens when you have a couple of douce-bag former PR munchkins heading your government, and in charge of green energy microgeneration. Happy roof-squatting !
    Alban Thurston