It’s well known throughout history that fossil fuels have been the cheapest source of electricity.
Well, that’s all about to change.
For the first time ever the International Energy Agency (IEA) has confirmed that solar energy is the cheapest form of electricity in the world.
The new studies that were conducted show that solar power is 20-50% cheaper than previously thought.
This is great news for renewable energies!
Dr Faith Birol acting chief of IEA made a statement, “I see solar energy become the new king of the world”.
The IEA’s new study has revolutionised solar energy as we know it today. We can expect to see solar beginning to be pushed more around the world.
So much so, that the IEA have actually predicted there will be a “43% more solar output by 2040”. For places like India, they could expect to see a drop in solar prices down to around 60 cents over the next few decades.
In the best locations the IEA now states that solar energy can be as cheap as $20USD per megawatt hour (MWh). This is significantly less of a cost than coal and gas.
PICTURE CREDIT: IEA
It’s not to say that energy is more expensive, but it’s more to do with the governing policies in place to push towards renewable energy over fossil fuels.
For example, solar energy is cheaper in China than it is in Europe and the US. This is mainly due to the Chinese government strongly supporting the solar market more and investing both money and resources to see this area grow.
Although the whole world was rocked by COVID19 the global demand for energy is back on the rise again.
It gives countries the opportunity to start making the move forwards, towards renewable energies. Not only can they help take a stance against climate change, but provide cheaper energy now as well, thanks to this new evidence.
According to the records provided by the IEA, solar energy will grow each year by the amount of 13%.
They even suggest in their latest report, that renewable energies will overtake coal as the main source of power in the world by 2025.
South Australia managed to meet 100% of the electricity it needs to power the whole state from solar energy. Most of this power surprisingly came from rooftop PV systems.
An article produced by Good News Network explains how rooftop solar along with solar farms helped produce “1.37 gigawatts of available power” for South Australians. They are well on the way to removing the need for fossil fuels and gas altogether.