In places such as Germany, Spain, Portugal, Australia, and the Southwest United States, residential-scale solar production has already reached “grid parity” with average residential electricity prices. In other words, it costs no more in the long term to install solar panels than to buy electricity from utility companies. The prices of solar panels have fallen 75 percent in the past five years alone and will fall much further as the technologies to create them improve and scale of production increases. By 2020, solar energy will be price-competitive with energy generated from fossil fuels on an unsubsidized basis in most parts of the world. Within the next decade, it will cost a fraction of what fossil-fuel-based alternatives do.The coming era of unlimited — and free — clean energy (Washington Post)
It isn’t just solar production that is advancing at a rapid rate; there are also technologies to harness the power of wind, biomass, thermal, tidal, and waste-breakdown energy, and research projects all over the world are working on improving their efficiency and effectiveness. Wind power, for example, has also come down sharply in price and is now competitive with the cost of new coal-burning power plants in the United States. It will, without doubt, give solar energy a run for its money. There will be breakthroughs in many different technologies, and these will accelerate overall progress.
Despite the skepticism of experts and criticism by naysayers, there is little doubt that we are heading into an era of unlimited and almost free clean energy. This has profound implications....
The environment will surely benefit from the elimination of fossil fuels, which will also boost most sectors of the economy. Electric cars will become cheaper to operate than fossil-fuel-burning ones, for example. We will be able to create unlimited clean water — by boiling ocean water and condensing it. With inexpensive energy, our farmers can also grow hydroponic fruits and vegetables in vertical farms located near consumers. Imagine skyscrapers located in cities that grow food in glass buildings without the need for pesticides, and that recycle nutrients and materials to ensure there is no ecological impact. We will have the energy needed to 3D-print our everyday goods and to heat our homes.
We are surely heading into the era of abundance that Peter Diamandis has written about — the era when the basic needs of humanity are met through advancing technologies. The challenge for mankind will be to share this abundance, ensuring that these technologies make the world a better place.
First, the plunge in renewable prices continues, and over the last 5 years, wind has resumed its plunge as well. Their numbers show an average price decline over the last 5 years of 78% for utility scale solar and 58% for wind.Solar and Wind Plunging Below Fossil Fuel Prices (Ramez Naam)
Second, unsubsidized prices are cost competitive with grid wholesale prices. Solar, which delivers power during the daytime and afternoon, heavily overlapping with the late afternoon and early evening peak, is well below the wholesale price of peak power (provided by ‘peaker’ natural gas plants that only operate during those few hours of the day). Solar is even closing in on the wholesale cost of 24/7 operated coal and natural gas plants that provide ‘baseload’ power overnight (and as the underlying power throughout the day.)
Third, It’s all about storage now. (Or soon, at any rate.) Inside of a decade, in most of the US and most of the world, solar or wind will be cheaper than coal or natural gas on an instantaneous, non-stored basis. This trend appears inexorable. And so long as there is demand for more energy at the hours at which solar and wind are delivering (which is the case right now), then the situation is great.