Solar energy costs have been falling for decades. This long and significant trend has already made solar energy the cheapest option for new electricity in the world – in the history of the world. However, this does not mean that it is the cheapest in all locations and situations, and it does not mean that a new solar power plant will be cheaper than obtaining electricity from an existing fossil fuel plant. So there is more work to be done!
To start, though, let’s take a look at this beautiful chart below, which shows the average solar module costs in the USA from 2006 to 2019 (chart on the right) and solar module shipments in the USA from 2006 to 2019 (chart on the left):
Impressive, isn’t it? However, there is still room for improvement, and the United States Department of Energy (DOE) would like to do so.
Shooting by the Sun (or 2 ¢ / kWh)
The DOE aims to cut costs for solar power plants on a public service scale by 60% by 2030, according to a new cost reduction target announced by the agency today (March 26, 2021).
To help advance the price reduction trend, DOE is committing another $ 126 million in comprehensive ways to reduce costs.
“In many parts of the country, solar energy is already cheaper than coal and other fossil fuels and, with more innovation, we can cut the cost again by more than half in a decade,” said Energy Secretary Jennifer M. Granholm . “This first wave of funding will help us add clean energy that is even more accessible to the grid, jobs for communities across the country and will put us on the right path towards President Biden’s goal of 100% clean electricity by 2035.”
While the 60% cost reduction target is for utility-scale solar power plants (the cheapest per kWh), several of the measures are sure to help lower solar roof prices as well. For a more in-depth analysis of this, I recommend an article I wrote a few months ago, after a conversation I had with Tesla CEO Elon Musk, about how Tesla is able to offer record solar roof prices – which is only $ 1.49 / watt after taking into account the United States federal tax credit, compared to an industry average of $ 2.19 / watt (also after taking into account the United States federal tax credit).
The new solar cost targets on a public service scale are expected to reach 3 cents per kilowatt-hour (kWh) by 2025 and 2 cents per kWh by 2030, accelerating this cost reduction by 5 years compared to the previous target. The current average cost of electricity for a new utility-scale solar power plant is 4.6 cents per kilowatt-hour.
How DOE aims to reduce US solar costs
So how does DOE intend to help cut solar costs so much by 2030?
First, the US DOE’s Solar Energy Technologies Office (SETO) sees two materials used in solar cells as critical to this brighter solar future, perovskites and cadmium telluride (CdTe).
The department has $ 63 million to try to help with these solar cell innovation goals. In the DOE’s own words:
- $ 40 million for perovskite R&D: Perovskites are a family of emerging solar materials that have the potential to make highly efficient thin-film solar cells at very low production costs. DOE is awarding $ 40 million to 22 projects that will advance the research and development of perovskite photovoltaic devices and manufacturing – as well as performance through the formation of a new $ 14 million test center to provide neutral validation and independent of the performance of new perovskite devices.
- $ 3 million Perovskite award for startups: This new prize competition will accelerate the path of entrepreneurs to commercialize perovskite technologies, providing start-up capital for their newly formed companies.
- $ 20 million for CdTe thin films: The National Renewable Energy Laboratory will form a consortium to develop cheaper CdTe thin-film solar technologies, developed in the United States and representing 20% of the modules installed in the country. This consortium will move forward with low-cost manufacturing techniques and domestic research capabilities, increasing opportunities for U.S. workers and entrepreneurs to capture a larger share of the $ 60 billion global solar manufacturing sector.
These solar technologies have been improving for years and a lot of money has been invested in their development. Considering that much of DOE’s work is in R&D, it is no surprise to see this focus. More interesting or surprising to me was that the agency’s goal is to help extend the life of silicon-based solar photovoltaic systems from 30 to 50 years. In reality, experience has shown that some solar photovoltaic systems last well beyond 30 years and, while they may seem wild, systems that last 50 years do not seem out of reach.
DOE is investing $ 7 million in this part of the effort, and that money will be used to try to extend the life of photovoltaic solar inverters, connectors, cables, racks and trackers.
In reality, even if photovoltaic systems can last 50 years, financing or investment contracts and plans would not normally extend anywhere near this – it is a very long period of time for a company to involve you in planning. Therefore, the biggest challenge of using an average cost of 50 years per kWh may be more with business plans and standards than with the life of the system, but perhaps this will change a bit naturally as the longevity of different physical components of a photovoltaic solar system is extended.
Forget the concentration of solar energy … or not
With solar photovoltaic energy so cheap and getting cheaper, it can be tempting to say that it is time to give up concentrating solar energy (which is a form of thermal energy such as coal, natural gas or nuclear energy). However, its costs have also been falling consistently, it offers some other benefits that could complement solar photovoltaic energy in a high-tech renewable grid and DOE is not giving up on that.
“Today’s announcement also supports several solar thermal energy concentration (CSP) projects,” notes the department. Here are the details of the DOE:
- $ 33 million for CSP advances: The new financing opportunity also includes financing for improvements in the reliability and performance of CSP plants, which can dispatch solar energy whenever necessary; identifies new solar applications for industrial processes, which contribute 20% of US carbon dioxide emissions; and advances long-term thermal energy storage devices. Long-term energy storage is critical to decarbonizing the electricity sector and fits well with CSP plants, but the cost is expected to fall by a factor of two to unlock the deployment.
- $ 25 million to demonstrate a next generation CSP power plant: Sandia National Laboratories will receive funding to build a facility where researchers, developers and manufacturers can test next generation CSP components and systems and move towards the DOE 2030 cost target of 5 cents / kWh for CSP plants.
How to Learn More and Experiment in Science and Solar Engineering funded by DOE
If you are interested in putting your hat (or science) in the ring on any of these solar topics, and potentially helping to reduce solar energy costs / prices in the United States, you can “[l]get more information about SETO and its research priorities in PV and CSP and participate in the next webinars on open opportunities:
Naturally, some Democratic members of Congress were happy with the applause of clean energy programs and highlighted some of the numerous benefits of low-cost solar energy and greater practical scientific development. Below are some of the main quotes on these topics.
“To combat climate change, the United States must make clean energy available to all families. Today’s scholarship awards support research and development projects that will make solar panels more accessible and effective, ”said United States Senator Ben Ray Luján. “I applaud the Department of Energy for making this strong investment in our energy future.”
“As chairman of the Chamber’s Science, Space and Technology Committee, it is exciting to see my constituents selected to promote technologies that will play a critical role in reducing greenhouse gas emissions from the electricity sector. These awards will not only help the United States achieve the deep decarbonisation needed to mitigate the growing impacts of climate change, but will also put many Americans in my district and across the country back to work in the midst of the COVID-19 pandemic. ” said US Representative Eddie Bernice Johnson, chairman of the Chamber’s Science, Space and Technology Committee.
As we have been doing for over 10 years, we will keep you informed of trends in solar technology prices, solar energy prices and solar energy installations. Stay tuned and don’t forget to subscribe to stay up to date with this kind of solar news until 2030 and beyond. You can also support our work if you intend to follow this story in the years to come and hope to see us cover it. And, of course, if you want to join the solar revolution, feel free to jump to Tesla, SunPower, Sunrun or another solar website to get a solar quote (they are always free).
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