[audio:http://wamcradio.org/EarthWise/wp-content/uploads/2014/07/EW-07-24-14-Solar-Grid-Parity.mp3|titles=EW 07-24-14 Solar Grid Parity]
One of the most common complaints about solar power is that it is too expensive and that the only reason it gets deployed at all is by virtue of government subsidies and tax credits. Historically, there was some amount of truth to this criticism but the times they are a-changing.
For many years, the Holy Grail for the solar industry (and, for that matter, for the wind industry as well) has been the achievement of “grid parity”. Grid parity occurs when an alternative energy source can generate electricity at a cost that is less than or equal to that of conventional sources on the grid. Once that happens, it is likely that there will be a rapid shift to the use of the alternative energy source.
With the dramatic decreases in the cost of solar power in recent years along with the rising costs of conventional power, grid parity has in fact already taken place in many parts of the world. Australia stands out as an exceptional example. Rooftop solar in Australia offers homeowners a savings of 46% in their electricity costs compared with other sources.
Solar power is now cheaper than natural gas for generating electricity on the east coast of China. In the United States, grid parity has been reached in California, Hawaii and in some southwestern states. Elsewhere, such as in the Northeast, it hasn’t happened yet.
Grid parity makes solar power compelling as cheap, clean, convenient and reliable electricity; and that is happening in more places all the time.
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Web Links
Solar Grid Parity Markets — Comparison Of Solar & Retail Electricity Prices
Photo, posted July 2, 2007, courtesy of Jim Clark via Flickr.
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Earth Wise is a production of WAMC Northeast Public Radio.