Industry executives revealed this week at Bloomberg’s annual “New Energy Finance” conference in New York that the cost of solar energy is now competing with coal in some (sunny) regions, like the Middle East and California.
The cost continues to drop as installations continue to grow, and “may soon be competitive with the cost of coal in general”.
By 2020, the cost of building “large photovoltaic projects” is expected to fall to half the current price: only $1.45 per watt (in 2020). If the feed-in tariff pays about 40p per kWh, then that means it would take less than 3,000 hours to pay back the cost. Or one year of 10-hour sunshine days. Or maybe two to three years in the UK. (As a rough order of magnitude calculation.)
That is very good news indeed!
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