It’s been no secret that over the past decade, the cost of energy from renewable sources has been dropping and has reached an all-time low, so much so that in most countries it is becoming the cheapest source of electricity. This trend is becoming more apparent, especially in the Solar Energy
Why is Solar Energy Cost Decreasing?
“Solar photovoltaics (PV) shows the sharpest cost decline over 2010-2019 at 82%,”
Source: IRENA
The simple answer is advancing technologies. As you look around you will notice that large computers and machines from just a few years back are becoming smaller, cheaper and more advanced. The same applies to technologies used for Solar Energy. Solar panels are becoming smaller and more efficient, generating more electricity.
The technology used to manufacture Solar Panels is also becoming more efficient and with the continued increase in production, price is expected to decrease.
How much has the cost decreased?
“Since 2010, the cost of energy has dropped by 82% for photovoltaic solar, by 47% for concentrated solar energy (CSP)”
Source: IRENA
According to the International Renewable Energy Agency, the cost of energy generated by solar plants is on average $0.068/kWh, which is a huge decline from $0.378 ten years ago. Considering that the price fell 13.1% from just between 2018-2019, it is expected
When is the right time to go solar?
“the cost of renewables are set to continue declining dramatically through to 2030.”
Source: Michael Taylor at IRENA,
Even though the price of solar energy is projected to fall further, waiting a few years more would mean you are missing out on the substantial cost benefits. Especially now that according to a new report by the International Energy Agency (IEA), Solar Energy cost is at an all-time low.
To sum it up, solar energy is arguably becoming the cheapest source of renewable energy for years to come. If you are looking for a renewable energy source that can positively affect your bottom line, Solar Energy is your best bet.
SOURCES: World Energy Outlook 2020 Renewable Power Generation Costs in 2019 Renewable Energy Is Now The Cheapest Option - Even Without Subsidies 8th IRENA Assembly: Utility scale solar LCOE falls 73% since 2010 Analysis shows Wind and Solar costs will continue to fall dramatically throughout the 2020s
