Some good news: solar energy costs are falling much faster than anyone was expecting. It seems that older price projections were based on variations of Moore’s Law, where costs would halve in a certain number of months, starting from the invention of solar cells. However, Citigroup thinks this is too conservative a method, as the mass production phase is the more important one, and that only began in 2008. We are in an early, and still very steep, part of a price drop.

    Solar thermal electricity improvements appear to be even more dramatic. For reference, one provider is predicting electricity prices of 8c/kWh, in an area where current peak fossil fuel prices are 30c/kWh (and rising). At such a price it would be counterproductive for any provider to use fossil fuels – even if they were free, as some commentators have noted.

    Citigroup: How solar module prices could fall to 25c/watt : Renew Economy.

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