21-06-08 A new study makes the case that solar power is emerging as a cost-effective hedge against fossil fuels and is likely to reach parity with retail electricity rates in most regions of the United States in less than a decade.
The Utility Solar Assessment Study, produced by clean-tech research and publishing firm Clean Edge Inc. and green-economy non-profit Co-op America, says that for the first time, solar power is beginning to reach cost parity with conventional energy sources. As solar prices decline and the capital and fuel costs for coal, natural gas and nuclear plants rise, the US will reach a crossover point by around 2015, the study says.

Installed solar photovoltaic prices are projected to decline from an average $ 5.50 to $ 7 per peak watt (15-32 cents per kWh) today to $ 3.02 to $ 3.82 per peak watt (8-18 cents per kWh) in 2015 and $ 1.43 to $ 1.82 per peak watt (4-8 cents per kWh) by 2025.
The study lays out a plan for utilities, solar companies and regulators to reach 10 % solarusage in the US by 2025. The investment to arrive at 10 % solar is not small, the study adds, reaching $ 450 bn to $ 560 bn between now and 2025 -- an average of $ 26 bn to $ 33 bn per year.

"One of the big takeaways from this report is that, in many ways, the future of solar is in the hands of utilities," says Ron Pernick, Clean Edge co-founder and managing director and study co-author.
"Reaching 10 % of our electricity from solar sources by 2025 will require the active participation of utilities along with the support and participation of regulators and solar technology companies."

The study, written by Pernick and Clean Edge contributing editor Clint Wilder, is based on interviews with more than 30 solar, utility, financial and policy experts and leverages proprietary Clean Edge data on solar PV market size, cost, pricing history, projections and other key market factors.