Solar power prices closing in on coal-fired power

• 9 years ago (2015-03-05)
• Junior Isles

Renewables 776

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According to Deutsche Bank analysts, the cost of rooftop solar power is approaching that of coal-fired power, a situation that could lead to competition for conventional energy utilities and commodities.

"Over the next 20 years, we expect over 100 million new customers to deploy solar and roughly $4 trillion of value to be created in this timeframe," analysts said in the report (entitled 'Crossing the chasm'). "[The] bottom line [is that] we believe the solar industry is going through fundamental change and the opportunity is bigger than it has ever been before."

Over the last few years the cost of generating solar power has fallen sharply, as solar modules become cheaper, which should more than offset falling oil prices, the report also forecast.

While rooftop solar power is indeed cheaper than residential power in many countries, it may not make financial sense without subsidiaries, however.

Despite this, the Deutsche Bank predicts that they "expect electricity prices worldwide to double over the next 10-15 years [which makes] the case for solar grid parity even stronger".

Solar power threatens severe disruption to the standardised model of centralised utilities companies providing for a disparate customer base, as it could make many consumers self-sufficient, without any meaningful operating costs.