Energy analysts at Deutshe Bank, a global financial institution based in Germany, have announced that by the year 2016, solar power is expected to be the same rate, or even cheaper, than traditional electricity from the grid in all but three American states. These predictions are based on the assumption that there will be no further changes to energy existing policies.
This is great news, as it means that we are only a few short years away from having no excuse, economically speaking, to not go the solar route. Advocates of renewable energy sources welcoming the optimistic predictions and welcoming further investment.
Energy from solar expected to achieve grid parity by 2016
Solar within the U.S has grown dramatically by 139,000% within the past decade. The reasons for this boom is the fact that solar technology and manufacturing have become more affordable as well as various U.S. state and federal tax incentives which cut around 30% off the upgrading costs required.
As it stands, solar is a small player within the energy industry, accounting for less than 0.5% of all the energy produced in America, but it’s just the start. The full potential of solar is mind-boggling to say the least and has the power to light up the country 100 times over!
Solar energy revolution not without obstacles that need to be overcome
The main obstacles holding back the further development of solar include competition from other sources of renewable enegry, as well as the current technology restrictions with power storage and transmission. Solar power within the American South-West has already reached grid parity, and Wall Street is beginning to sit up and take notice. Citigroup investment report has also reaffirmed their viewpoint that solar is set to be a big part of the energy industry’s future.
Photo courtesy of Activ Solar on Flickr