According to a recent Bloomberg article, solar power has become the world’s cheapest form of new electricity generation. See: https://www.bloomberg.com/news/articles/2016-12-15/world-energy-hits-a-turning-point-solar-that-s-cheaper-than-wind Solar PV is cheaper than not only other renewables (i.e., wind), but also is cheaper than conventional sources, such as coal and natural gas.
According to Bloomberg’s analysis, the cost of solar power in many emerging market economies has dropped by about two-thirds since 2010. The article reports that during 2016 the price of electricity from solar dropped by over 50% to a low of $29.10/MWh in Chile, which is about half the price of coal-produced electricity there. The article attributes this drop in costs to China’s massive investment in solar panel production and its assistance to other countries financing their own solar projects. 2016 is expected to see global generating capacity of newly-installed solar PVs reach a record 70 gigawatts (estimated), exceeding that of wind for the first time.
And solar PV will get a further “shot in the arm” as technology to integrate solar power into buildings themselves is ready to make its debut in the field. Tesla and Panasonic will jointly begin to manufacture and market Tesla’s solar roof products. Manufacturing will be performed at Tesla’s Buffalo, NY facility.
This technology is called building-integrated photovoltaics (BIPV) sector. See http://news.energysage.com/tesla-solar-panel-roof-the-next-solar-shingles/ BIPV is the inclusion of solar power-generating elements in the construction of a structure. A roof or window is present not just for protection from elements or for aesthetics, but now can contain the elements to absorb sunlight and generate electricity, as well. This is in contrast with traditional rooftop solar installations, which entails attaching PV panels separately to roofing material. Integrating solar power generation as part of the construction project rather than as a separate post-construction addition would result in cost savings by reducing labor and installation costs and eliminating the need for separate racking equipment. With Tesla’s BIPV, solar becomes an efficient building material rather than an add-on. This is not the first such product as solar roof shingles (from Dow and others) already exist, but has had a limited market. Dow has exited this business segment.
Market research indicates that some building managers are hesitant to commit to traditional solar panels because they are an add-on. If the roof underneath needs work there is extra labor to remove and then put back on the solar panels. An integrated product would address this concern. A recent study estimated an annual compounded growth rate of BIPV of nearly 10% over at least the next 5 years.
CCES can help you decide if solar PV is right for your buildings, including BIPV or traditional add-on panels and whether it makes economic sense. And we can advise you on any of many other issues in the energy and environmental areas to maximize your financial gain and minimize risk. Contact us today at 914-584-6720 or at karell@CCESworld.com.