The Threat Of Solar Value Deflation

How cheap does solar power need to get before it takes over the world?

Brad Plummer, April 18, 2016 (VOX)

“…[Solar is growing at double-digit rates each year but] still has some hard economic obstacles to overcome before it can become a major energy source and provide (let's say) one-third of our power…[According to Solar power needs a more ambitious cost target, value deflation causes the electricity generated by solar to be less valuable as more comes online so its installed cost must drop from today’s $3 per watt to $0.25 per watt by 2050]…That's a mind-bogglingly low number, and it could require thinking about solar innovation in a radically new way…[The authors said] we're still many years away from value deflation becoming a crippling problem. But that's why it's dangerous to get complacent…[Batteries and utility load shifting can help fend off value deflation — but only partly…Achieving the $0.25-per-watt goal…[will require] not just ruthlessly cutting costs for existing technology but also plunking down money on future ideas…” click here for more

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