Solar panels are cheap enough to become a major component of green energy.
Originally posted at: MIT Technology Review
The United States has supported research into photovoltaics for almost 40 years, recently with a 30 percent investment tax credit. Japan instituted incentives in the 1990s, when photovoltaics cost at least five times as much as residential electricity. In the new millennium, Germany instituted incentives an order of magnitude larger.
Thanks to these efforts, the cost of photovoltaic modules has dropped 40 percent in the last 18 months. Photovoltaic electricity now costs about 15 cents per kilowatt-hour in the best sunlight. That’s only twice the cost of wholesale electricity and wind. Costs are expected to continue decreasing, and electricity is worth more during the daytime than at night. That means this technology is finally cheap enough to become a significant element in plans to combat climate change and oil dependence.