Will Solar Power Get Cheaper?
Dec 06, 2022 7:01 am
Will Solar Power Get Cheaper?
2 min read
According to the Motley Fool, solar panel costs have fallen 99% since 1977. They also cite that solar power is cheaper than fossil fuels.
Lithium-ion batteries have become cheaper and more efficient over the years, with experts expecting the technology to further improve.
Gregory Nemet, author of “How Solar Became Cheap”, says that lithium-ion batteries can be used to store energy from solar and wind farms that are next to each other. This kind of battery storage ‘sharing’ could prove to be cost effective.
Flow battery is a type of battery technology that has recently been introduced. It separates the charge outside the cell of the solar panel, helping it store more energy and for longer. The industry is working to make these expensive batteries cheaper. Other technologies aimed at reducing the price for solar energy are in the pipeline and are backed by aggressive investment, which could help continue the solar PV price trend over the next decade.
Countries and regions such as US, China and EU are taking large steps to becoming carbon neutral. China, the world’s largest solar producer is not slowing down on giving benefits for installing solar and still encourages financial institutions to offer incentives for solar installations. In 2018, China introduced a new policy to reduce capacity allowances and tariffs for electricity produced from solar energy. This resulted in a 27-34% fall in the price of solar PV systems.
The U.S. government provides tax incentives for solar installations, creating popularity with solar energy usage. In March 2021, the U.S. Department of Energy announced its target of cutting solar energy costs by 60% within the next ten years, adding to almost $128 million in funding to lower costs, improve performance, and speed up the release of solar energy technologies.
According to the UN, electricity costs from utility-scale solar energy in Africa decreased 82% between 2010 and 2019. Wind power only returned a 50-60% decrease in the same period. They also mention that “further cost reductions and sustained policy support” will likely be initiated throughout 2022 and beyond.
Summary
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