SunShot Initiative Meeting Target Low-Prices

There's been some pretty fantastic news in the world lately.  CDs, vinyl are outselling digital downloads for the first time since 2011.  That is pretty cool if you never updated your stereo system, and you've been Jonesing to use that cd player your mom repurchased you in 1992.  It's a really nice cd player, good job mom.  There has also been some pretty cool news in the solar panel industry, and it's pretty amazing.  The solar industry has met the 2020 utility-scale solar price target set by the Energy Department's SunShot Initiative, three years early.

NREL And DOE

The DOE's National Renewable Energy Laboratory (NREL) published new research today that reveals the average price of utility-scale solar is now under $1 per watt and beneath 6 cents per kilowatt-hour.

That’s higher than the record-breaking project bids we’ve observed in the U.S. and abroad in recent years. But that’s because DOE estimates for equalized the cost of energy (LCOE) do not include subsidies -- such as the federal Investment Tax Credit -- and are based on the average environment in Kansas City, Missouri. (Note: GTM documented the sub-$1 per watt milestone earlier this year, but the administration is using its own metrics.)

“Our mission is to make solar affordable for all Americans, and so our goals are defined for average U.S. climates. We use Kansas City as that example,” said Becca Jones-Albertus, acting deputy director of the SunShot Initiative. “Hitting a 6 cents per kilowatt-hour target for Kansas is a more significant metric than hitting 6 cents in sunnier parts of the country.”

Tech Solar

Technology advancements have been a primary driver of the price declines since 2011. Solar module prices have seen a particularly dramatic cost reducing in recent years. That's due in part to efficiency improvements as a result of material nature and innovative cell and module designs, as well as the development of diamond wafer sawing, which dramatically decreases material loss in the making of silicon wafers. The NREL report found that module prices also declined considerably over the past year due to an oversupply. 

Moving on, the Suniva/SolarWorld trade event could have a significant impact on the economics of solar in the U.S. and could set the SunShot goals beyond reach again. According to DOE researchers, the tariff requested on introduced solar modules would have a 2-2.5 cent impact on the LCOE for solar. If module prices grow from roughly 35 cents today to 78 cents under a new tariff scenario, the price of a utility-scale solar system will increase from approximately $1 per watt to $1.38 per watt. 

Want to save and be guided by experts who do the research and know the answers? Go to HahaSmart.com and try our price checker tool. How much solar power you need and how much you can save on your energy bills each month.