Clean Edge, a research and publishing company focused on renewable technologies and the non-profit organization Co-op America released a report that states the cost of electricity derived from solar power will be on par with electricity derived from fossil fuels by 2015.
The report predicts “as solar prices decline and the capital and fuel costs for coal, natural gas, and nuclear plants rise, the U.S. will reach a crossover point by around 2015.” It also asserts that the U.S. can grow its overall contribution of electricity generated from the sun to 10 percent by 2025. Currently, less than a tenth of one percent of total electricity comes from the sun.
The report’s authors cite the great leaps forward already made in solar installations. In the past five years solar installations – both solar photovoltaic and concentrated solar – have expanded from 600 megawatts in 2003 to almost 3,000 megawatts in 2008, equivalent to three conventional power plants.
From a utility standpoint, solar offers distinct advantages over conventional fuel sources, such as coal and natural gas, making its competitive edge apparent within the next ten years:
- Once a solar installation is in place, utilities need minimal, if any, fossil fuel to operate the site, offsetting both the price of those resources and the cost to transport them to the site.
- Compared to nuclear, coal, and natural gas power plants, solar has low maintenance costs and provides carbon-credits, in a cap-and-trade carbon emissions economy.
- Solar-derived electricity has proven itself a cost-effective resource, particularly during periods of peak demand.
Similar to the recent report analyzing the wind power industry in the USA, government and market forces will have to continue to propel the industry forward. However, reaching 10 percent solar capacity is within reach using current technology available today.
Once again the sun is proving its worth.
