Solar power is cost competitive with coal in Australia

For years, people have discussed the concept of “grid parity,” which is the point at which generating solar energy does not cost any more money than burning coal or gas for electricity.

In one corner of the world, it appears that grid parity is here.  Solar power is cost competitive with coal in Australia.

The cost of solar has been dropping dramatically recently due to higher efficiencies and better solar technology.  People can now generate significantly more solar power at a lower price than they could a decade ago.  And, solar is more mainstream and accepted by property owners around the world and across the spectrum.

So, what is special about Australia?

On this island continent, photovoltaic (PV) panels installed on buildings and ground-mounted have resulted in a major dip in the cost of solar energy.  That means, that over a relatively short period of time, PV cells can now produce as much energy as coal, for about the same price.

The precipitous drop in solar costs has lead to the ability for the renewable energy resource to rival coal-generated power.  According to the Australian Photovoltaic Association, grid parity is leading to reconsideration by government regarding solar panels and solar power as viable options.   This is so, even without subsidies for solar power.

According to Photovoltaic Association spokeswoman Dr. Muriel Watt:

“It’s competitive with coal if you add what you need to do to bring the coal-fired electricity to where you want to use it,” she says. “So it’s coal plus the network. I think it’s a really good investment . . .”

Growth in the solar power market likely will mean a continuing decrease in solar production costs.

With solar power cost competitive with coal in Australia, which continent/country will be next?  Can the USA soon reach the point when consumers will have a real choice between polluting fossil fuels and solar power for their electricity needs?

Look for even lower solar panel prices in 2011

Just when you thought the news about solar power couldn’t get any brighter!  Prices for solar panels have fallen by more than 1/2 over the past few years, and now experts believe that the costs will be even lower this year.  In order to compete with companies in China and Taiwan, U.S. solar manufacturers have slashed prices.

With bargain basement costs and generous government rebates and incentives, more and more consumers are going solar these days.  As a result, solar cell production is ramping up across the United States to meet solar energy demand, expected to double in 2011.

All this news should be very welcome by homeowners and small businesses.  After all, solar panels used to be out of price range, but are now available for realistic budgets.

Just how cheap will solar panels get?  Currently, wholesale solar panel prices are at about $1.50 per watt.  Experts believe that the costs will fall another 20% by the end of the calendar year.

With as much as 30% of the cost available as a solar tax credit, its time to maximize savings  – both on solar panels and monthly electricity bills!  Its amazing to consider the fact that solar energy installations doubled in 2010 (its now at about 1,000 megawatts).  In the next twelve months, solar energy demand is expected to double again, to 2,000 megawatts in 2011.