Bloomberg New Energy Finance reports in its 2014 Factbook these startling facts:
"Prices of solar modules have declined by 99% since 1976 and by about 80% since 2008. Total system costs for global, best-in-class utility-scale solar installations are now $1.55/W and expected to continue falling. As a result, power-purchase agreements (PPAs) for projects that are expected to be completed around 2016 have featured prices below $70/MWh."
Total installed solar costs are now $1.55 per watt. Incredible! Solar power purchase agreements are being signed for the equivalent of 7 cents per kilowatt-hour, at a time when new natural gas plants cost 6 cents per kilowatt-hour.
Utility scale solar is already competitive and attractive, especially given that its fuel costs are fixed for 30 years. But even lower solar costs are ahead. Indeed, the $1 per watt Holy Grail for solar pricing will now be achieved.
Both utility scale and distributed solar are a combined tsunami of low-cost, zero-fuel cost, easily-built qualities that will smash business-as-usual in power generation markets.