The appeal of solar energy has always been linked to the sustainability of competitors in the energy sector. Every energy crisis or embargo on oil is a time when solar energy’s popularity tends to increase, only to fade as the availability of less expensive fossil fuels return to normal. This trend could be coming to an end in the near future. Bloomberg New Energy Finance (BNEF) is responsible for one of the more sophisticated new energy estimates across the globe and has reported that the price of solar power has decreased by 33 percent in emerging markets from the year 2010. This does not only mean that solar is now beating wind as the cheapest type of renewable energy source in the developing regions of the globe, but it also indicates that it has been able to compete with gas and coal in a few situations too. Private solar companies that bid on projects in India and Chile were able to get one-third the price of coal.
When we are in the realm of renewable energy that is capable of reducing the cost of fossil fuels on a regular basis and our world will look quite different.
The fact that the latest solar energy projects have become more efficient to construct than wind turbines and even fossil fuels, has due to the creation of less expensive technology and better processes. These breakthroughs occur after China and a variety of emerging economies such as India, Pakistan, and Egypt have joined forces in an effort to find sustainable energy sources. China alone is expected to install more than 110 million of KW of solar power in 2020.
While subsidies remain favoritism in big economies such as those of the United States and Australia, the innovations generated by the emerging world has started to make its way through commercial systems for solar as well as solar systems for homes all over the world. In the U.S. solar energy prices fell by around 12% in the past year, which is in line with the trend that has been in the past since 1977 (the price for solar power systems in 2013 was about 100 times less than the price that solar panels cost in.) Oxford University predicts a continuing reduction in prices of approximately 10% per year.
Commercial solar panels, home solar systems as well as photovoltaic power plants are able to surpass the more traditional options successfully. Contrary to wind power, solar power is an ideal option for people’s homes and homeowners are likely to take advantage of the opportunity to save money in ever increasing quantities. In Australia it is estimated that a 5.7kw system is typically able to save homeowners more than $1200 off their power bills in their first year. Since more efficient systems could perform the same thing in less sunny regions We could experience a radical transformation in the economies of many countries and the way in which their energy industry are run. Solar energy is set to quickly alter the wholesale price of energy and will cause nations to rethink their energy systems and budgets to accommodate an empowered population.
What the world will look in 2050 is anybody’s guess. If MIT is believed to be true it is possible to be seeing as high as 75 percent of the world’s energy coming from solar sources in the middle of this century.
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