Thursday, February 6, 2014

Stunning Fact: Bloomberg Finance Finds Utility Scale Solar Now Costs $1.55/Watt

Bloomberg New Energy Finance reports in its 2014 Factbook these startling facts:

"Prices of solar modules have declined by 99% since 1976 and by about 80% since 2008. Total system costs for global, best-in-class utility-scale solar installations are now $1.55/W and expected to continue falling. As a result, power-purchase agreements (PPAs) for projects that are expected to be completed around 2016 have featured prices below $70/MWh."

Total installed solar costs are now $1.55 per watt.  Incredible!  Solar power purchase agreements are being signed for the equivalent of 7 cents per kilowatt-hour, at a time when new natural gas plants cost 6 cents per kilowatt-hour.

Utility scale solar is already competitive and attractive, especially given that its fuel costs are fixed for 30 years. But even lower solar costs are ahead. Indeed, the $1 per watt Holy Grail for solar pricing will now be achieved.

Both utility scale and distributed solar are a combined tsunami of low-cost, zero-fuel cost, easily-built qualities that will smash business-as-usual in power generation markets.

1 comment:

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