Hello there, solar enthusiasts. Did you know that solar isn’t just good for the planet, it’s good for your wallet too? In 2010, generating electricity from solar was four times more expensive than the cheapest fossil fuel alternative. Fast-forward to today and generating electricity from solar is less than half as expensive as the cheapest fossil fuel option!
According to the International Renewable Energy Agency (IRENA), the Levelized Cost of Electricity (LCOE, a metric that measures cost-efficiency of different energy sources) for solar has fallen 90% since 2010. For those of you who are new to this field, LCOE essentially calculates the representative value of the total cost to build and operate a power plant over its lifetime.
And get this – the LCOE of solar PV was 56% less than the weighted average fossil fuel-fired options in 2023. And we’re not just talking a slight dip here; in 2010, it was 414% more expensive!
Solar energy prices have drastically dropped around the globe, moving from $0.460 per kWh to a mere $0.044 per kWh. The solar PV capacity also saw an incredible growth of 35-fold between 2010 and 2023, with over 1.4 TW installed during this period.
But the good news doesn’t stop there. The capacity factor, which translates to the amount of available maximum electricity generation that is actually produced, has also seen a marked improvement. This is thanks to increased solar panel efficiency and operational efficiencies among other things.
Solar companies are constantly innovating and implementing lean processes, which in turn leads to manufacturing optimization and more efficient use of materials. These moves have played a significant role in continuing to make solar PV technology a competitive player in the long run.
A large chunk of the decline in costs associated with installed utility-scale solar projects can be attributed to lowered module and inverter costs. In the global scheme of things, 67% of the cost declines from 2010 to 2016 were a result of declining costs in these two components. Moreover, operations and maintenance costs have also seen a significant drop.
Given the rapid advancements and cost savings in solar technology, now is a better time than ever to explore solar panels for your home. With a personal solar array for home use, you too can join the green revolution and contribute to a more sustainable world, while enjoying substantial savings over time.
With new solar installations hitting record highs and battery storage capacity dramatically increasing while costs plunge, the future of solar energy looks brighter than ever. Powerful and affordable, solar energy is poised to lead the renewable energy revolution, transforming homes, communities, and even industries. Get on board now and reap the rewards of this unstoppable trend.
Original Articlehttps://pv-magazine-usa.com/2024/09/26/solar-levelized-cost-of-electricity-56-lower-than-lowest-cost-fossil-fuels/
