Environmental Matters in the Commonwealth of Kentucky

The U.S. could generate 10 percent of its electricity through solar sources by 2025, suggests a new study released by Clean Edge and Co-op America.  The report states 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 U.S. will reach a crossover point by around 2015.
• Installed solar PV prices are projected to decline from an average $5.50-$7.00 peak watt (15-32 cents kWh) today to $3.02-$3.82 peak watt (8-18 cents kWh) in 2015 to $1.43-$1.82 peak watt (4-8 cents kWh) by 2025
• Solar power offers a number of advantages over conventional energy sources. Among them, the ability to deliver energy at or near the point of use, zero fuel costs, minimal maintenance requirements and zero carbon-based source emissions.
• The investment to arrive at 10% solar in the U.S. is not small, reaching $450 billion to $560 billion between now and 2025, an average of $26 billion to $33 billion per year. However, given utilities’ existing capital costs such an investment is not prohibitive. To put the investment in perspective: Utilities spent an estimated $70 billion on new power plants and transmission and distribution systems in 2007 alone.

The study, based on interviews with more than 30 solar, utility, financial, and policy experts, gives a comprehensive roadmap for utilities, solar companies, and regulators to reach 10 percent of electricity from solar sources by 2025 — a $26 billion to $33 billion-per-year investment. For the first time, solar power is beginning to reach cost parity with conventional energy sources, says the study. As solar prices decline and the capital and fuel costs for coal, natural gas, and nuclear plants rise, the U.S. will reach a crossover point by around 2015.  A summary of the report is at: http://www.cleanedge.com/reports/reports-solarUSA2008.php.