Good News: The Cost of Solar Power Has Fallen 25% in Only 5 Months
“There’s no reason why the cost of solar will ever increase again,” former Masdar Clean Energy director Frank Wouters has told Electrek.
The cost of building solar power has plummetted 25% in five months, according to low construction bids on solar projects in China ($0.46/W for 500MW of solar power) and Dubai ($0.023/kWh for 1.2GW of solar power).
Several factors have driven these relatively inexpensive bids. In China, solar power is incentivized and in Abu Dhabi, solar panels produce more power than usual because the city enjoys some of the best sunlight exposure in the world.
Decreasing hardware prices have fueled the drastic drop: solar panel costs, for instance, have declined since the first quarter of this year.
Other areas have shown similar price falls. In Nevada, a 100MW solar project would deliver electricity at $0.04/kWh. Chile and India are also experiencing similar efficiency.
Technology for developing renewable sources of energy gets better through time. And while it does, the cost of an energy efficient world becomes more and more affordable.