Solar to become more affordable than coal or gas in the near futureDecember 5, 2015 |
The feel good vibe around the solar industry in the last few months has just got better. Lazard, an independent research and analysis company, has released a report into the cost effectiveness of energy sources. The findings point to solar power, when generated on a utility-scale, being more cheaper than gas or coal. This is made all the more staggering by the fact that solar power has dropped in cost by a massive 25% in the last twelve months alone.
The report, a follow up from a similar one conducted six years previously, also noted that solar energy had dropped in price by 80% since 2009. This was only rivalled on the energy market by the drop in the price of natural gas over the same time period, convincingly beating the fossil fuel. The figures were based on U.S. data, but despite this, they paint a positive picture for the similarly structured Australian market in the years ahead.
How we can relate U.S. data to home
The United States, much like here in Australia, is heavily reliant on various numbers of fuels, both renewable and fossil. We use more coal than they do (39% vs 73% respectively), slightly less natural gas (37% vs 13%), roughly the same amount of hydropower (6% vs 7%), and over four times as much solar energy (0.4% vs 2%). Missing percentages can be accounted for in that we have no nuclear sources (19% of energy in the U.S. comes from nuclear), and other renewable forms, such as biomass and wind.
The fact that solar energy is still small and emerging, when compared to other fuels, makes the price affordability so much more important. It means that, very soon, solar energy will most likely eclipse other fuels very quickly in terms of affordable energy sources. Considering that the Australian market mimics that of the U.S. quite closely, we can expect the same great savings here. It’s already quite affordable here right at this moment, even without market expectation.
The future of solar energy
As solar becomes more cost-effective than other sources, due in part to increased market share and more investment, you can expect prices to further decrease. Australia is already experiencing a solar boom, with sales and innovation being driven up by a return in confidence. The recent news that Australia is to become a testing ground of sorts for some of the biggest battery storage companies on earth also gives us great hope moving forward.
Think Solar, a wholesale provider of high quality PV solar panels, is in a great position to offer you the already low prices, and further decreases in the near future. Our team share a wealth of experience in planning and installation. They will be able to create a solar solution for you which will allow you to reap all of the amazing benefits that comes with owning your very own PV system.