Unbelievable: Solar Energy Becomes Cheaper Than Natural Gas

solar and wind electricityAs this year is coming to an end, it’s worth mentioning that a major transformation has recently happened in the global energy markets.

World energy hit a turning point as for the first time solar power becomes the cheapest kind of electricity, even cheaper than the wind.

How It All Started

It’s not the first time the solar power takes the lead. For instance, some very competitive Middle East auctions in the past resulted in extremely cheap solar power costs. However, nowadays unsubsidized solar power starts to surpass natural gas and coal on a larger scale. As a result, a new project with the

However, nowadays unsubsidized solar power starts to surpass natural gas and coal on a larger scale. As a result, a new project with the best solar panel company will cost you less than a wind project.

Investment in solar power was almost zero only a few years ago. And now it has gone to quite a lot. China played a big role in this story because it has been rapidly spreading out solar power in the country as well as helping other countries subsidize their own solar projects.

Half the Price of Coal

There has been an outstanding run for solar power in 2016. Private companies held different auctions where they competed for large deals to provide electricity. These auctions set up record after record for the cheapest solar power.

The competition started in January in India where a contact was signed to produce electricity for $64 per megawatt hour. Later in August another deal in Chile pegged $29.10 per megawatt hour. Such electricity is extremely cheap and, roughly speaking, it has become half the price of coal power.

Situation in Different Countries

solap power in different countriesOf course, those contracts were new, but lots of other similar projects are waiting for completion this year. It’s likely that for the first time after all the completions are counted, the total sum of solar power will exceed that of wind.

More and more organic solar panels are produced as they are perfect for solar panel manufacturing. They are very cheap and can be of any shape. More than that, they are rather thin but capable of generating big amounts of energy.

As for the United States, the potential of solar energy in the USA is about to triple!

In wealthier countries, such replacement towards clean energy can be more expensive. This is due to the fact that electricity demand is falling in these countries, and new solar power has to contend with existing billion-dollar gas and coal plants. In a short time, this new renewable energy will take the lead and beat all the other types of energy in most of the countries.

Turning Points

The world is currently adding more capacity for clean solar energy than for natural gas. Within the next decade, we may witness the new peak fossil fuel use for electricity. The growth rates of solar power development are higher in the emerging-market states. That’s why it’s more likely that they will remain the leaders of the clean energy indefinitely.

However, the development of the wind and solar power still takes time. That is why we can’t fully replace fossil fuels as they continue to be the cheapest option for situations when the sun doesn’t shine or when the wind doesn’t blow.

For populations living in the cities with smog or those who have no electricity at all, the shift to solar power won’t come too soon. Maybe the whole world will start using solar panels in the years to come, but natural gas and coal will also keep on playing a key role in the facilitation of energy poverty for lots of people in the nearest future.