We’ve heard a lot lately about the cost of solar going down. We’ve also seen it first-hand. Last week I read a Futurism.com article discussing how in the last five months alone the price has come down nearly 25% for solar hardware and installation.
At Greenlight, we find that the number one reason our customers look at and install solar systems is the economics. The article I tweeted out to the world discussed global costs going down. This will only translate into more savings for our customers in the long run. Pair that with the tax credits and government incentives, and it really does make sense now more than ever to go solar.
“It seems that we have truly entered a new era in energy production—in renewable energy production, that is. Over the past few months, the cost of solar power has plummeted, and it seems that things are going to stay this way…there’s no reason why the cost of solar will ever increase again,” former Masdar Clean Energy director Frank Wouters noted in a recent interview with Electrek. If governments and innovators continue to invest in these energy sources the way that they have been, Wouters statements are easy to believe.
In just 5 months, prices have dropped some 25%. This development is shown in the recent, and staggeringly low, construction bids on solar projects in China ($0.46/W for 500MW of solar power) and Dubai ($0.023/kWh for 1.2GW of solar power).
Several factors have driven these relatively inexpensive bids. In China, solar power is incentivized. To that end, decreasing hardware prices have largely fueled the drastic drop—solar panel costs, for instance, have declined remarkably since the first quarter of this year. And in Abu Dhabi, solar panels produce more power than usual because the city enjoys some of the best sunlight exposure in the world.
We can take a look at the long term approach to our supply customers as well. With the cost of solar on the whole going down, this savings will likely also funnel to our renewable electricity consumers. In Nevada, a 100MW solar project is expected to deliver electricity at $0.04/kWh. Chile and India are also experiencing similar efficiency.
The key is now to make sure the grid itself can distribute and store this cheap and limitless power. We look forward to continuing to see great changes and benefits for all of our Greenlight Energy customers.