SOLAR IS SUCH A DEAL

Affordable solar: It's closer than you think; It's time to stop thinking of solar energy as a boutique source of power, says Joshua Pearce.
Marcia Goodrich, December 1, 2011 (PhysOrg)

"…[Joshua] Pearce, an associate professor of electrical engineering and materials science at Michigan Technological University…[said solar energy] is about to go mainstream…It's a matter of economics. A new analysis by Pearce and his colleagues at Queen's University in Kingston, Ontario, shows that solar photovoltaic systems are very close to achieving the tipping point: they can make electricity that's as cheap—sometimes cheaper—as what consumers pay their utilities.

"…First, the price of solar panels has plummeted… [in the last 2 years by] 70 percent…But more than that, the assumptions used in previous studies have not given solar an even break…To figure out the true cost of photovoltaic energy, analysts need to consider several variables, including the cost to install and maintain the system, finance charges, how long it lasts, and how much electricity it generates. Pearce and his colleagues performed an exhaustive review of the previous studies and concluded that the values given those variables were [inaccurately assessed]…"

An LCOE cited by the Pearce study as accurate - but dated (click to enlarge)

"…[M]ost analyses assume that the productivity of solar panels will drop at an annual rate of 1 percent or more…[but the new study found it is…much less, between 0.1 and 0.2 percent…[Equipment cost in 2011] is under $1 per watt for solar panels purchased in bulk on the global market, though system and installation costs vary widely. In some parts of the world, solar is already economically superior, and the study predicts that it will become increasingly attractive in more and more places…

"Based on the study, and on the fact that the cost of conventional power continues to creep upward, Pearce believes that solar energy will soon be a major player in the energy game…[when] market economics catches up…"