There has recently been a rash of articles saying that wind and solar have reached grid parity, that is, the cost of electricity generated with them is as cheap as or cheaper than electricity. Solar energy has blown past grid parity the motley fool. Deutsche bank securities, speaking at a semi new england. Mar 02, 2015 by 2016, using our cost estimates, nearly 47 states would be at grid parity in the us, in our view. The interactive grid parity map for solar energy shows those states that are enjoying solar savings or at least at solar breakeven. Grid parity or socket parity occurs when an alternative energy source can generate power at a levelized cost of electricity lcoe that is less than or equal to the price of power from the electricity grid. Solar leasing is a financing structure for rooftop solar systems in which the developer solar lessor owns, installs, and operates a rooftop solar system on the site hosts property the site host solar lessee pays for the solar systems through monthly installments. Solar pv at grid parity in 10 states according to deutsche bank photo source. Considerations for solar energy technologies to make progress towards grid price parity. Moreover, we believe some of the grid and financing constraints that have inhibited growth so far are set to improve in 2014. Deutsche bank predicts second solar gold rush greentech media. Deutsche bank says solar is currently competitive without subsidies in at least nineteen markets globally, and it expects more markets to reach grid parity in 2014 as solar system prices decline.
Solar at grid parity in most of world by 2017 reneweconomy. Deutsche bank estimates that grid parity for solar even without the benefit of subsidieshas already occurred in 14 u. Whenever you read or hear about solar energy, the topic of grid parity is one that is consistently brought up. Key themes 1 expect more countries to reach grid parity in 2015. Mar 31, 2016 when will rooftop solar be cheaper than the grid. A more detailed enumeration by state is given for the united states. For decades, grid parity has been the holy grail of the solar industry. Deutsche bank predicts solar energy will achieve grid. Solar plusbattery grid parity is here already or coming soon for a rapidly growing minority of utility customers, raising the prospect of widespread grid defection. With the 30% investment tax credit see below currently in place, it is estimated that 47 states will reach grid parity by 2016. This means in the sunnier regions the equivalent cost of power from the best rooftop solar panels is now equal to or less than the retail price of power from the grid.
Solar grid parity describes the moment when electricity from solar power is less costly than electricity from the existing grid. Dec 10, 2015 deep dive the factors driving wind and solar toward grid parity a new analysis shows when, where, and why renewables can be costcompetitive. On october 27, gw solar institute experts were featured in a bloomberg bna article on solar energy becoming cost competitive with electricity generated by coal and natural gas. Sep 10, 2012 grid parity is the holy grail for renewable energy sources and it looks like the germans may finally be reaching it. Deutsche bank sees all 50 us states at solar grid parity by 2016 setting the scene for a dramatic increase in the uptake in household and commercial rooftop solar. Practical roadmaps to grid parity for the target countries, representing the major eu pv markets andor markets with the highest development potential. These incentives have helped solar approach grid parity with conventional energy sources in a number of markets.
While these factors are strongly in favor of a large increase in grid integrated solar energy systems, some observers have expressed concern that rapid growth in grid connected solar energy systems poses significant challenges to grid. Oct 29, 2014 solar has already reached grid parity in 10 states that are responsible for 90 percent of u. These data suggest we have reached solar grid parity in the united states and represent an important step towards ensuring a renewable source of energy. Deutsche bank sees all 50 us states at solar grid parity by. Deutsche bank predicts solar grid parity in 80% of global. We are clearly working hard, particularly at both phase 1 and phase 3, but with some advances in phase 2 as well. Although some areas could hit wholesale grid parity by as soon as 2018, most largescale. Investment bank deutsche bank is predicting that solar systems will be at grid parity in up to 80 per cent of the global market within 2 years, and says the collapse in the oil price will do little to slow down the solar juggernaut. International market entry in the photovoltaic industry. Deutsche bank expects pv electricity to achieve grid parity when alternative energy sources can generate power at a levelized cost of electricity lcoe less than or equal to the price of the existing electricity grid in up to 80% of global markets within two years. Apr 10, 20 german bank reports solar power cost in india and italy has reached grid parity.
Protection against arc and hot spot damage superior lowlight performance due to antireflective nanocoating technology. Referencing a deutsche bank report, bloomberg announced that if the investment tax credit itc of 30 percent is extended beyond 2016, solar energy in 47 states would achieve price parity with electricity from conventional sources in 2016. Germany has led the world in solar power since passing its renewable energy. Grid parity, rate design and net metering risk, 20 u. Commonly acknowledged definition of grid parity, validated by the pv community. Please take up your dispute about solar power grid parity with deutsche bank s research department. Grid parity for solar pv refers to a point where its cost can compete with that of conventional grid power without the consideration of any external incentives.
Solar to beat wind to wholesale grid parity in europe report. German bank reports solar power cost in india and italy. Deutsche bank predicts that solar power will be at grid parity in up to 80 per cent of the world within 2 years, giles parkinson of reneweconomy. Within 15 years, solar will be a dominant energy source. Investment bank deutsche bank is predicting that solar systems will be at grid parity in up to 80 per cent of the global market within 2 years, and says the collapse in the oil price will do. Current support schemes will be examined and their implied costs until grid parity will be forecasted. Factors such as amount of sunlight, differences in financing conditions, market regulation and existing electricity prices and installation costs in different locations contribute to the lcoe and when a region reaches grid parity. Solar pv will narrowly beat onshore wind to wholesale grid parity in europe, according to a new report.
Grid parity definition, glossary, details solar mango. A new report from a mena region bank shows that solar will be at grid parity within two years in 80% of the world. German bank reports solar power cost in india and italy has reached grid parity 10 april 20, by bob yirka solarkraftwerk waldpolenz, the first solar 40mw cdte. Solar is achieving grid parity in a number of new markets globally and we expect companies involved in project developmentfinancing to benefit the most from the significant volume growth over the next few years. Deutsche bank sees all 50 us states at solar grid parity by 2016 setting the scene for a dramatic increase in the uptake in household and commercial rooftop solar in the worlds biggest economy. Grid parity depends upon whether you are calculating from the point of view of a. Page 3 2 us based distributed generation business models are set to become more. Technological developments are close to creating a tipping point in the energy industry, with off grid. Solar has already reached grid parity in 10 states that are. German bank reports solar power cost in india and italy has reached grid parity. It predicts the us market will soar to 16gw a year, solar costs will continue to fall and the slump in oil. The article builds on deutsche bank expert vishal shahs recent research note claiming that declining solar costs could reach grid parity in 47 states if the 30 percent investment tax credit was.
It should also mean equal without subsidies like f eed i n t ariffs fit, net metering, and tax credits. Well, your mileage may vary, but in many states, we are there now. Deutsche bank sees all 50 us states at solar grid parity. A 2015 report by deutsche bank predicts that solar pv generation systems will be at grid parity in up to 80% of the global market within two years see figure 2.
Solar grid parity in all 50 us states by 2016, predicts deutsche bank posted on october 31, 2014 by stlane rooftop solar pv will reach grid parity in 50 us states by 2016 up from just 10 now setting the scene for a dramatic increase in the uptake in household and commercial rooftop solar in the worlds biggest economy. Apr 04, 2017 there has recently been a rash of articles saying that wind and solar have reached grid parity, that is, the cost of electricity generated with them is as cheap as or cheaper than electricity. Solar pv business models and key policy considerations. Deutsche bank is a leading clientcentric global universal bank serving 28 million clients worldwide. According to the latest report from gtm research, u. The idea is that once solar hits this ultimate test of affordability, it will begin to displace utility electricity. Grid parity depends upon whether you are calculating from the point. Deutsche bank md expects grid parity ahead for mexican. Apr 08, 20 a recent deutsche bank report concludes that solar power has now reached grid parity, meaning that it costs the same as electricity from the power grid, in italy and india where the governments. Definition of gridparity for photovoltaics and development. Oct 27, 2014 deutsche bank sees all 50 us states at solar grid parity by 2016 setting the scene for a dramatic increase in the uptake in household and commercial rooftop solar in the worlds biggest economy. Global power capacity, offgrid solar pv, 200818 source. Grid parity or socket parity occurs when an alternative energy source can generate power at a. According to market research of deutsche bank, solar energy is now the cheapest source of electricity in chile and newly installed pv capacity could exceed 1 gw in 2015.
Grid parity might be the most important part of stopping climate change you never hear about on the news. The economic viability of battery storage for residential solar. Rooftop solar pv will reach grid parity in 50 us states by 2016 up from just 10 now setting the scene for a dramatic increase in the uptake in household and commercial rooftop solar in the. Deutsche bank solar energy is approaching grid parity. Despite the recent drop in oil price, we expect solar electricity to become competitive with retail electricity in an increasing number of markets globally due to declining solar panel costs as well as improving financing and customer acquisition costs. Solar power has reached grid parity in india and italy. Grid parity is most commonly used in the field of solar power, and most specifically when referring to solar photovoltaics pv. The report says that the number of markets where solar is at grid parity will double over the next 35 years.
Despite the recent drop in oil price, we expect solar electricity to becomecompetitive with retail electricity in an increasing number of markets. First, a pv system can compete at grid parity level. Nearly every cost for installing solar, from panels to inverters, is on the decline. Therefore, achieving parity with onshore wind power seems. The year of solar grid parity march, 20 by solarfeeds editorial team in knowledge base because of strong demand for rooftop solar forecast this year in key markets and further drops in pricing, deutsche bank believes the solar industry will transition from subsidized to sustainable in 2014. German solar panels reaching grid parity energy live news. In those states alone, installed capacity growth will increase as much. Pv market will be especially attractive for entry as growth in european markets. A gridparity model is presented, which is based on levelized cost of electricity.
As pv systems do not use fuel and are largely maintenancefree, the levelized cost of electricity lcoe is dominated almost entirely by the capital cost of the system. According to deutsche bank right now, the cost of a rooftop solar photovoltaic pv system has reached grid parity which means it costs the. We believe the underlying economics of the sector have improved significantly and we may be just at the beginning of the grid parity era, according to db, low natural gas prices may make large utility scale solar deployments in the us less attractive for now, but we remain bullish about rapid development of utility scale solar in several international markets over the next 35 years. A recent report proclaimed that solar power will reach grid parity in most of the united states by 2016. Its the mythical transition point when solar suddenly becomes cheaper than the grid, opening up a world of new demand and. Even if the tax credit were reduced to a level of 10%, bloomberg predicts that by 2016, at least 36 states will have reached grid parity for solar. The economics of solar investment pdf download 5 mb. Grid parity depends on what sort of solar, on whose grid, and in what location. Grid parity analysis of solar photovoltaic systems in germany. Solar pv has recently been handed a huge responsibility, and solar proponents may now rejoice as the world finally expects solar power to fill the role of the global electricity providing powerhouse. Solar grid parity in all 50 us states by 2016, predicts. Most recently, vishal shah, trusted deutsche bank analyst, released his 2015 report on the future of solar energy, claiming solar will reach grid parity.
Eia, gwec, deutsche bank estimates click to enlarge. Why electric utilities should struggle to sleep at night coal power plants such as this one in page, ariz. Its a tipping point, when democratization of the electricity system not only makes political and economic sense, but becomes more competitive than using utilitydelivered electricity. Mapping solar grid parity institute for local selfreliance. Grid parity might be the most important part of stopping climate change. Grid parity is a moving target solar market parity spain. Mar 02, 2015 solar pv at grid parity in 80% of globe by 2017. Solar grid parity expected by 2017 predicts deutsche bank. The global solar industry is in the midst of another inflection point that sets the stage for the beginning of the grid parity era, where solar is at equal cost or cheaper than traditional energy sources, according to a new report from deutsche bank. Vishal shah is a leading expert in the field of clean energy and former managing director of deutsche bank. Various analyses of the economics of solar pv versus grid power have inferred that solar pv will achieve grid parity at different points in time for different regions of the world. International market entry in the photovoltaic industry 7. Gridparity is a very important milestone for further photovoltaic pv diffusion.
Considerations for solar energy technologies to grid price parity. Deutsche bank provides commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, governments, institutional investors, small and mediumsized businesses, and private individuals. Once the red states follow, our nation will have reached grid parity as a whole. Renewable energy agency, united nations statistics division, world bank and world health organisation. Solar pv at grid parity in 10 states according to deutsche.
German bank reports solar power cost in india and italy has. Grid parity or socket parity occurs when an alternative energy source can generate power at a levelized cost of electricity lcoe that is less than or equal to the price of purchasing power from the electricity grid. Archived pdf from the original on 21 november 2014. For certain customers, including many customer segments in hawaii, grid parity is here today. In fact, solar grid parity is expected to be in up to 80% of the global market by 2017, with even the falling price for oil doing little to slow this shifting energy dynamic. Deutsche bank md expects grid parity ahead for mexican solar pv market published by solarplaza tuesday 17 february 2015. In 2015, deutsche bank has predicted that solar systems will be at grid parity in up to 80% of the global market by. If global electricity prices were to increase at 3% per year and cost reduction occurred at 515% cagr, solar would achieve grid parity in an additional 30% of target markets globally. I have no doubt that doomers and pronukes and procoals will use this chaos to justify their wrong opinions and flawed analysis. As a result, widespread grid parity for wind and solar are generally predicted for the time between. Grid parity is when the cost of solar equals the cost of conventional electricity alternatives.
In light of our upcoming solar market parity europe conference, we interviewed vishal shah, the senior solar analyst with steady footing in wall street and clear eyes on the global solar industry. Deutsche bank, as of february 2015 see file description. Deutsche bank says solar could be at grid parity in most global markets within two years. Going forward, solar power is now economically beneficial in a number of regions and industry is financially motivated to enter ppa with new solar power plants. Spectrumefficient solar energy for dispatchable electricity or dense fuels howard m. Giles parkinson of the australianbased website reports. The term is most commonly used when discussing renewable energy sources, notably solar power and wind power. Deutsche bank also predicts solar energy will be at grid parity in up to 80 percent of the world by the end of 2017. Introduction to grid parity and levelised cost of electricity.
Deutsche bank md expects grid parity ahead for mexican solar pv market. My only assumption has been that, given the uks weather, latitude, and the price of electricity, there will be a large number of other countries that achieve solar power grid parity. The year of solar grid parity solarfeeds marketplace. A 2015 study by deutsche bank predicts solar energy will be at grid. Countries where solar pv achieved grid parity residential, industrial or commercial. Investment bank deutsche bank is predicting that solar systems will be at grid parity in up to 80 per cent of the global market within two years, and says the collapse in the oil price will do little to slow down the solar. Deutsche bank says solar is approaching grid parity. Solar pv grid parity i could contend that mexico is the initial poster boy in the grid parity stakes with hermosillo, like las palmas in spain, boasting a top rating of six bars, or full grid parity, because the highest photovoltaic lcoe is lower than the standard price of retail electricity, or the lowest peak electricity cost. Solar grid parity is happening within two years according to deutsche bank, a global financial institution based in germany. The factors driving wind and solar toward grid parity. This point of grid parity is a moving target but is moving closer in a number of places. Solar pv will reach grid parity in 58 years, but an industry shakeout will occur over the next couple of years, and some good companies will go under.
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