Solar Energy is the Cheapest Power Source in History

In some areas of the world, due to policies that encourage the development of renewable energy, solar energy is now the cheapest power source in history according to a new report issued by the International Energy Agency (IEA). Although sunlight is free, the technology required to convert it into electricity can be expensive. In order to encourage more people to use solar energy, some countries adjust their policies so that the cost of purchasing solar energy equipment becomes lower. More than 130 countries have formulated policies to reduce the cost of building new solar installations. This year is the first time that the IEA has taken such policies into consideration when calculating the cost of solar energy in its annual World Energy Outlook report. After that, the estimates of solar energy costs in each region compared with last year showed a drop of 20% to 50%. According to the report, as costs continue to fall, Solar is on track to become “the new king of power supply,” Driven by global efforts to combat climate change, it is expected that solar energy will occupy more and more market shares in the next ten years. For example, the European Union has set a goal that 32% of its energy comes from renewable energy by 2030. “Policy support does seem to continue.

According to the report, in most countries in the world, the cost of building solar power plants is lower than that of new coal-fired or power plants. For the utility-scale solar projects completed this year, in the world's largest markets such as the United States, Europe, China and India, the average power generation cost of the power station during the entire life cycle is between US$35 and US$55 per megawatt. According to data from the World Economic Forum, four years ago, the global average cost of solar power was more than $100 per megawatt hour. About ten years ago, it was as high as $300. In contrast, according to the latest report of the IEA, the cost of coal-fire power generation is currently between US$55 and US$150 per MWh, roughly the same as the price in the past decade. The IEA predicts that even if the economy recovers next year, global coal use may not return to the level before the pandemic. On the other hand, the forecast for future solar energy is clear. Due to the pandemic, electricity demand has now declined, but the IEA predicts that once the pandemic is brought under control and the economy recovers, people's demand for electricity may rebound quickly. The agency also predicts that in the future solar power will continue to grow at a record rate to meet growing consumer demand.

The good news is that solar technology is constantly improving and innovation is constantly reducing costs. GF New Energy Technologies Co., Ltd. was devoted to develop solar tracker dampers,  shock absorbers for solar tracking system.  Subscribe our web for more news of solar PV energy.