Solar Has Crossed a Critical Economic Tipping Point
Now It May Help Break It Apart Leon Stille has a background in energy sciences (MSc and BSc) and is pursuing a PhD in energy policy.
He currently runs his own company,… For years, the economic case for solar came with an awkward qualification.
And yes, over the life of a project it could already produce cheaper electricity than a new coal or gas plant.
Solar concentrated most of its lifetime costs at the beginning.
Fossil power appeared to ask for less capital upfront and spread the rest of the bill across decades of coal or gas purchases.
In rich countries with deep capital markets, that distinction could be managed.
In emerging economies facing high interest rates, limited public budgets and competing infrastructure needs, it could determine what was built.
That disadvantage has now largely disappeared.
According to a newEmber analysis, a solar plant can now require less upfront investment than a coal or gas plant for the same amount of electricity delivered.
A decade ago, solar could require up to five times as much.
This is not another claim that solar has become cheaper on a lifetime basis.
It is a more fundamental tipping point: solar is now competing with fossil fuels before the first tonne of coal or cubic meter of gas is purchased.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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