Solar Costs and Grid Prices On a Collision Course

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feature-0-1373309136135.png With the cost of solar continuing to fall rapidly (50 percent in the past five years) and electricity prices rising steadily, if slowly, the approach of solar grid parity is near. The following chart illustrates the trajectory of solar cost and electricity price, hinting at the coming intersection.*The chart compares the cost of a residential solar

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  • ggunn
    ggunn Solar Expert Posts: 1,973 ✭✭✭
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    Re: Solar Costs and Grid Prices On a Collision Course

    The text says the cost of solar has fallen "50 percent in the past five years", but the chart shows that only if you look at the difference over the last five years compared to what it costs now. When I read that something has fallen 50%, I expect to see it be half now what it was before, not 33% less.
  • BB.
    BB. Super Moderators, Administrators Posts: 33,532 admin
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    Re: Solar Costs and Grid Prices On a Collision Course

    Our utility (PG&E Northern California) is applying for another rate increase of ~5.7% -- They say a standard residential home using 550 kWH per month will be from ~$93 around $98 per month.

    And industrial customers a 10.4% increase.

    Not cheap--But getting high enough to attract some interest in alternatives (conservation, off grid of some sort, moving out of California, etc.).

    -Bill
    Near San Francisco California: 3.5kWatt Grid Tied Solar power system+small backup genset
  • solarix
    solarix Solar Expert Posts: 713 ✭✭
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    Re: Solar Costs and Grid Prices On a Collision Course

    Yes, well, the old saying is that past results are not a guarantee of future performance. While solar is indeed catching up with utility rates, whether this trend can be continued is doubtful. With all the PV manufacturers in the red or worse, cheaper PV panels and equipment are not too likely.
    Hey, how about eliminating some (or most) of the permitting hassle/costs? That would keep this trend in place.