Solar Reaching Grid Parity in Europe--Next US

[Jason]

There are some who think that only when solar energy is cost competitive with other energy sources will solar energy become more of a feature in the energy mix. They call this grid parity and at least according to one recent report, some European countries have broken the barrier. The report from Eclareon, a consulting firm, found that in Germany, Italy, and Spain, solar electricity is reaching the same costs as conventional energy. While the report does factor in various factors including subsidization, it also factors in installation costs, which are often high for solar. As The Week points out, combined factors including higher energy costs and wider deployment have led to a stronger solar industry, particularly in Germany, than in the United States.

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[J.P.M.]

There are some who think that only when solar energy is cost competitive with other energy sources will solar energy become more of a feature in the energy mix. They call this grid parity and at least according to one recent report, some European countries have broken the barrier. The report from Eclareon, a consulting firm, found that in Germany, Italy, and Spain, solar electricity is reaching the same costs as conventional energy. While the report does factor in various factors including subsidization, it also factors in installation costs, which are often high for solar. As The Week points out, combined factors including higher energy costs and wider deployment have led to a stronger solar industry, particularly in Germany, than in the United States.

More...

There may be grid parity for profligate users in some states. Solar still has a long way to go before reaching conservation and common sense energy use parity.

[russ]

at least according to one recent report, some European countries have broken the barrier. The report from Eclareon,

All depends on how you select statistics and handle the data - the entire line is silly

[Naptown]

It has broken grid parity here in maryland
real numbers
Electric costs $.14 a kwh
Solar cost installed before any incentives about $3.50 on average
With decent orientation each watt will produce 1.25 KWH per year
25 years including degredation of panels = 30.5 KWH per watt
30.5 x .14= $4.27 worth of electricity at today's rates.
Solar is well below grid costs.

[J.P.M.]

It has broken grid parity here in maryland
real numbers
Electric costs $.14 a kwh
Solar cost installed before any incentives about $3.50 on average
With decent orientation each watt will produce 1.25 KWH per year
25 years including degredation of panels = 30.5 KWH per watt
30.5 x .14= $4.27 worth of electricity at today's rates.
Solar is well below grid costs.

Respectfully, and speaking as a solar advocate: Solar may or may not be below grid costs depending on an individual's situation when held up to the lens and the criteria imposed by a life cycle cost analysis. A partial list of considerations: Length of time, cost of funds, energy inflation, general inflation, tax considerations including perhaps depreciation, property taxes, rebates and SRECS, maint. costs, salvage (resale) value, insurance, comparison with/among alternative investments, etc. etc. All those parameters and more are different for each situation, many are unknown at the time of analysis as is their future behavior, but still must be estimated, assumed or otherwise addressed.

A simpler exercise done maybe as a reality check and amounting to less than back of envelope before starting and/or doing the above: If I look around some, I can find a reasonably (??) safe corporate bond or two paying say 5%/yr. for 20-30 yrs. Each $3.50 invested in that way will pay me ($3.50 X .05) = $.175 /yr. = $.14/kWhr. X 1.25 kWhr./yr. - about the same return as the solar investment with what some would say are a lot fewer hassles. And, after the bond matures the holder ( hopefully and probably) will get all the original investment back - something I'd wager unlikely with the solar energy system.

Now before you run off and call me a simpleton - I understand, prefer and have done the life cycle analysis method briefly and very incompletely described above many times for many different projects, both for industrial equipment as part of investment decisions for clients, and residential solar including my own. However, the 2d method, while moronic and ONLY an example of many alternatives, does provide some grist for asking if there just may be some better alternatives for my investment dollars.

Solar may or may not be at or below grid parity. Some places maybe, other places probably not - yet ! Education and some serious number crunching usually leads to better decision making. Simply stating by fiat that grid parity is here, or anywhere doesn't make it so.