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Solar without Subsidies

For many years, solar has relied on public policy support, but also on the absence of subsidies of other fuels. The viability of solar without subsidies depends on cost of alternatives, solar irradiance and the cost of installation. Whilst the cost of installation does not vary greatly, the price of electricity (as a measure of the cost of alternative supply) and irradiance do.

We have plotted a number of locations on a chart across retail price of electricity and irradiance. The red line shows the cost of solar. In locations above the line, solar is cheaper.

Electricity price versus irradiation

 

What happens when the cost curve comes down further? This means more locations will be able to benefit from solar.


Long-term Outlook for Solar Electricity


Long-term outlook for solar electricityThe (WBGU) published a study with a long-term view of the global energy mix.

According to this report, solar electricity will really take off in 2030, and by the end of this century be the all-dominant energy source with over 50% share of the global energy mix.

This is followed only by biomass, gas, hydro and coal.

In any case, there is a huge potential for solar electricity.

There is probably no doubt that long-term, solar has to be the dominating source of energy. For solar technologies to be ready to take on that role, it has to be supported and developed today.


Electricity prices from

 

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