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Solar Power Is Already Cheaper Than Coal In Several Countries

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Solar Power Is Already Cheaper Than Coal In Several Countries

Solar stocks have established the tendency over the years of disappointing investors. The name SunEdison still haunts investors, as one of the world's biggest solar power companies declared bankruptcy in 2016. Tesla Motors Inc (NASDAQ: TSLA)'s acquisition of its sister company SolarCity was viewed by many as being a "bail-out" of the troubled solar energy company.

Despite the well-known troubles of many of the most notable global solar companies, solar power is now a cheaper power-generating alternative in many countries compared to coal.

Solar Cheaper Than Coal

According to Bloomberg, solar power in countries such as Chile and United Arab Eremites costs less than 3 cents a kilowatt-hour, which is half of the average global cost of coal power.

In fact, solar prices have been steadily dropping since 2009, as nearly every part of the supply chain contributed to a 62 percent decline in costs. This trend will continue, as the average one megawatt-plus ground mounted solar system will cost $0.73 a watt in 2025 as opposed to its current cost of $1.14.

As such, the price of solar power is expected to be cheaper than coal on average across the world by 2025.

"These are game-changing numbers, and it's becoming normal in more and more markets," Adnan Amin, International Renewable Energy Agency's director general told Bloomberg. "Every time you double capacity, you reduce the price by 20 percent."

Posted-In: News Education Emerging Markets Commodities Topics Global Markets Media Best of Benzinga

 

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