Solar energy is now so cost-effective that, in the sunniest countries, it costs as little as £0.02 to produce one unit of power, making it cheaper than electricity generated from coal, gas or wind, according to a new study from the University of Surrey.
The research team also found that the price of lithium-ion batteries has fallen by 89% since 2010, making solar-plus-storage systems as cost-effective as gas power plants. These hybrid setups, which combine solar panels with batteries, are now standard in many regions and allow solar energy to be stored and released when needed, turning it into a more reliable, dispatchable source of power that helps balance grid demand.
Despite many reasons to be optimistic, the ATI research team points to several challenges – particularly connecting large amounts of solar power to existing electricity networks. In some regions, such as California and China, high solar generation has led to grid congestion and wasted energy when supply exceeds demand.
- The full paper can be found here.
