New Study Finds That Solar Could Provide 10% of
U.S. Electricity Generation by 2025
WASHINGTON & PORTLAND, Ore., Jun 17, 2008 -- BUSINESS WIRE
A new study makes the case that solar power is emerging as a cost-effective
hedge against fossil fuels and is likely to reach cost parity with
retail-electricity rates in most regions of the U.S. in less than a decade.
The Utility Solar Assessment (USA) Study, produced by clean-tech research
and publishing firm Clean Edge and green-economy nonprofit Co-op America,
provides a comprehensive roadmap for utilities, solar companies, and
regulators to reach 10% solar in the U.S. by 2025. The report can be
downloaded at www.cleanedge.com and www.solarcatalyst.org (Co-op America's
solar program Web site).
The study finds that significantly scaling solar power in the U.S. will
require the active involvement of utilities. The study delivers a to-do list
for the three key stakeholders in the nation's solar industry. Among others,
the action items include:
-- For utilities: Take advantage of the unique value of solar for peak
generation and alleviating grid congestion; implement solar as part of the
build-out of the smart grid; and adapt to new market realities with new
business models.
-- For solar companies: Bring installed solar systems costs to $3 per peak
watt or less by 2018; streamline installations; and make solar a truly
plug-and-play technology.
-- For regulators and policy makers: Pass a long-term extension of
investment and production tax credits for solar and other renewables;
establish open standards for solar interconnection; and give utilities the
ability to "rate-base" solar.
The USA Study also reports that:
-- For the first time solar power is beginning to reach cost parity with
conventional energy sources. As solar prices decline and the capital and
fuel costs for coal, natural gas, and nuclear plants rise, the U.S. will
reach a crossover point by around 2015.
-- Installed solar PV prices are projected to decline from an average
$5.50-$7.00 peak watt (15-32 cents kWh) today to $3.02-$3.82 peak watt (8-18
cents kWh) in 2015 to $1.43-$1.82 peak watt (4-8 cents kWh) by 2025.
-- Solar power offers a number of advantages over conventional energy
sources. Among them, the ability to deliver energy at or near the point of
use, zero fuel costs, minimal maintenance requirements and zero carbon-based
source emissions.
-- The investment to arrive at 10% solar in the U.S. is not small, reaching
$450 billion to $560 billion between now and 2025, an average of $26 billion
to $33 billion per year. However, given utilities' existing capital costs
such an investment is not prohibitive. To put the investment in perspective:
Utilities spent an estimated $70 billion on new power plants and
transmission and distribution systems in 2007 alone.
"One of the big takeaways from this report is that, in many ways, the future
of solar is in the hands of utilities," said Ron Pernick, Clean Edge
cofounder and managing director and USA Study coauthor. "Reaching 10 percent
of our electricity from solar sources by 2025 will require the active
participation of utilities along with the support and participation of
regulators and solar technology companies."
In just the past year, a number of utilities and solar companies have
announced aggressive programs to deploy large-scale solar power projects,
including Southern California Edison's plan to install 250 megawatts of
distributed solar PV, Duke Energy's stated goal of investing $100 million in
rooftop solar, and Pacific Gas & Electric's announcements to invest in
thousands of megawatts of concentrating solar power in California's deserts.
While these players are still in the vanguard, a number of other utilities
are looking to join them to help bring solar power to scale - and the study
shows that solar could become "ubiquitous" as with earlier
semiconductor-based revolutions.
"As capital and fuel costs have doubled or tripled for coal, natural gas,
and nuclear power over the past few years, solar power costs are coming
down," explains Alisa Gravitz, Co-op America executive director and USA
Study project director. "For the first time in history, cost-competitive
solar power is now within the planning horizon of every utility in the
nation."
The study, written by Pernick and Clean Edge contributing editor Clint
Wilder, is based on interviews with more than 30 solar, utility, financial,
and policy experts and leverages proprietary Clean Edge data on solar PV
market size, cost and pricing history and projections, and other key market
factors. The USA Study is available for free download at www.cleanedge.com
and www.solarcatalyst.org.
About Clean Edge
Clean Edge, Inc., with offices in the San Francisco Bay Area and Portland,
Ore., is a leading research and publishing firm that helps companies,
investors, and policymakers understand and profit from clean technologies.
Founded in 2000, Clean Edge and its network of partners and affiliates offer
unparalleled intelligence and insight into the clean-tech sector. Among its
many activities, the company publishes the annual Clean Energy Trends
report, produces the annual Clean-Tech Investor Summit (along with IBF), and
maintains the NASDAQ(R) Clean Edge(R) U.S. Liquid Series (CELS) index, which
track U.S.-listed clean-energy companies. To keep abreast of the latest
clean-tech news, access industry reports, learn more about the annual summit
and stock index, or sign up for Clean Edge's free e-newsletter, visit
www.cleanedge.com.
About Co-op America
Co-op America is the nation's leading green-economy organization (501-c3)
advancing marketplace solutions for America's most serious social and
environmental problems for more than 25 years. Co-op America's Solar
Catalyst Program harnesses market forces to dramatically lower the price and
accelerate the growth of solar energy worldwide for a secure, equitable,
low-carbon energy future. Co-op America's other green-economy programs
tackle climate change, build fair trade systems, encourage corporate
responsibility, advance healthy, local communities, and provide green
purchasing and investing information for families and businesses. For more
information visit www.coopamerica.org and www.solarcatalyst.org.
SOURCE: Clean Edge, Inc.
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