Quantcast

It's Official: Solar Energy Cheaper Than Fossil Fuels

Popular
Solar farm at the Topaz Solar Farm in California. Photo credit: Sarah Swenty / USFWS

Renewable energy has reached an important milestone. The World Economic Forum (WEF) has determined that in many parts of the world, solar energy is now the same price or even cheaper than fossil fuels for the first time.

In a handbook released this month, the WEF observed how the price of renewable technologies, particularly solar, has declined to unprecedented lows.

While the average global LCOE [levelized cost of electricity] for coal and natural gas is around $100 per megawatt-hour, the price for solar has plummeted from $600 a decade ago to $300 only five years later, and now close to or below $100 for utility-scale photovoltaic. For wind, the LCOE is around $50.

According to the WEF, more than 30 countries have already reached grid parity—even without subsidies. ("Grid parity" is the point when an alternative energy source, say solar, can generate power at a LCOE that's equal or even less than the price of traditional grid power.)

"It is relevant to note that the mentioned evolution, market share gain and continued potential for renewable energy do not hinge on a subsidy advantage," the report added. "In fact, according to [International Energy Agency], fossil-fuel consumption has received $493 billion in subsidies in 2014, more than four times the value of subsidies to renewable energy."

The WEF highlighted how the unsubsidized LCOE for utility-scale solar photovoltaic—which was not competitive even five years ago—has declined at a 20 percent compounded annual rate, "making it not only viable but also more attractive than coal in a wide range of countries."

Countries that have already reached grid parity include Chile, Mexico, Brazil and Australia with many more countries also on the same track. The WEF projects that two thirds of the world will reach grid parity in the next couple of years, and by 2020, solar photovoltaic energy is projected to have a lower LCOE than coal or natural gas-fired generation throughout the world.

"Renewable energy has reached a tipping point," Michael Drexler, who leads infrastructure and development investing at the WEF, told Quartz. "It is not only a commercially viable option, but an outright compelling investment opportunity with long-term, stable, inflation-protected returns."

The report follows a recent analysis from the IEA which revealed that total clean power capacity increased by 153 gigawatts, overtaking coal for the first time. To illustrate, about 500,000 solar panels installed were installed around the world every day.

EcoWatch Daily Newsletter

Covering Climate Now / YouTube screenshot

By Mark Hertsgaard

The United Nations Secretary General says that he is counting on public pressure to compel governments to take much stronger action against what he calls the climate change "emergency."

Read More Show Less
A new rule that ends limits for hog slaughtering speeds could increase animal suffering, advocates warn. kickers / iStock / Getty Images Plus

Trump's U.S. Department of Agriculture (USDA) finalized a new hog slaughtering rule Tuesday that environmental and food safety advocates warn could harm animals, plant workers and public health, Reuters reported.

Read More Show Less
Sponsored
Prehistoric and historic walrus skulls, tusks and bone fragments often wash ashore on the southern coast of Snæfellsnes peninsula in Iceland. Hilmar J. Malmquist

A unique subpopulation of ancient walrus in Iceland was likely hunted to extinction by Vikings shortly after arrival to the region, according to new research.

Read More Show Less
Drivers make their way on the US 101 freeway on Aug. 30 in Los Angeles, California. Mario Tama / Getty Images

In its latest move to undermine action on the climate crisis, the Trump administration will formally rescind California's waiver to set stricter auto emissions standards under the Clean Air Act.

Read More Show Less
Brazilians living in The Netherlands organized a demonstration in solidarity with rainforest protectors and against the president of Brazil, Jair Bolsonaro on Sept. 1 in The Hague, Netherlands. Romy Arroyo Fernandez / NurPhoto / Getty Images

By Tara Smith

Fires in the Brazilian Amazon have jumped 84 percent during President Jair Bolsonaro's first year in office and in July 2019 alone, an area of rainforest the size of Manhattan was lost every day. The Amazon fires may seem beyond human control, but they're not beyond human culpability.

Read More Show Less
Sponsored
Author, social activist and filmmaker Naomi Klein speaking on the one year anniversary of Hurricane Maria on Sept. 20, 2018. Erik McGregor / Pacific Press / LightRocket / Getty Images

By Natalie Hanman

Why are you publishing this book now?

I still feel that the way that we talk about climate change is too compartmentalised, too siloed from the other crises we face. A really strong theme running through the book is the links between it and the crisis of rising white supremacy, the various forms of nationalism and the fact that so many people are being forced from their homelands, and the war that is waged on our attention spans. These are intersecting and interconnecting crises and so the solutions have to be as well.

Read More Show Less
This illustration can convey a representation of "eco-anxiety" — "chronic fear of environmental doom." AD_Images / Pixabay

As the climate crisis takes on more urgency, psychologists around the world are seeing an increase in the number of children sitting in their offices suffering from 'eco-anxiety,' which the American Psychological Association described as a "chronic fear of environmental doom," as EcoWatch reported.

Read More Show Less
Electric cars recharge at public charging stations. Sven Loeffler / iStock / Getty Images Plus

By Ben Jervey

Drivers of electric cars are being unfairly punished by punitive fees in several states, according to a newly published analysis by Consumer Reports. Legislators in 26 states have enacted or proposed special registration fees for electric vehicles (EVs) that the consumer advocacy group found to be more expensive than the gas taxes paid by the driver of an average new gasoline vehicle.

Read More Show Less