Here's an important report that really drives home solar power's rapid transformation into an energy leader world-wide. German experts at Agora Energiewende say that solar power, due to its increasing affordability and advancements in technology, may be the cheapest and smartest method of producing energy in just a decade. This is real confirmation of the trend that we see play out everyday in the solar market in Australia as more and more businesses turn to solar to save money.
Here is an excerpt:
Solar power still amounts for a small share of net electricity generation around the world. In the USA, for instance, as of December 2014 it was responsible for just 0.45% of the total electricity produced.
Things are changing quite quickly, however, and if the German think tank Agora Energiewende is right, faster than expected.
The main obstacle to a more widespread adoption of photovoltaic so far, has been cost: solar used to be very expensive compared to coal or gas, but, according to Agora – that recently commissioned a study on the subject to the Fraunhofer Institute for Solar Energy Systems – this is no longer true.
Solar power – researchers say – thanks to technological advancements, is already cost-effective in some sunny regions: in Dubai, a long-term power purchase contract was signed recently for 5 cents per kilowatt hour. Projects under construction in Brazil, Uruguay and other countries are reported to produce at costs below 7 ct/KWh.