Within 2 years solar systems will be at grid equality, in up to 80 per cent of the global market, and the oil price will do nothing to slow down its proliferation, according to new research.
Deutsche Banks says because grid-based electricity prices are rising across the world, and solar costs are continuously falling, solar will be at grid parity in most of the world by the end of 2017.
Solar energy will be cheaper than current conventional energy supplies for two thirds of the world even if current electricity prices remain stable.
But if electricity costs rise by around 3 per cent a year, then Deutsche’s “Blue sky” scenario is for 80 per cent of countries to be at grid parity for solar.
“We believe the trend is clear: grid parity without subsidies is already here, increasing parity will occur, and solar penetration rates are set to ramp worldwide,” Shah notes.
Deutsche says unsubsidised rooftop solar electricity costs anywhere between $US0.13 and $US0.23/kWh today and will likely fall another 40 per cent over the next three years due to improved panel efficiencies, and falls in balance of system costs due to scale and competition.”
© 2015 Solar Choice Pty Ltd