Solar Power Is Now Just As Cheap As Conventional Electricity In Italy And Germany

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http://thinkprogress.org/climate/2014/03/24/3418145/solar-grid-parity-italy-germany/

Once all its costs are accounted for, the price of commercial solar power has pulled even with retail electricity rates in Italy and Germany, according to a new report.

The analysis is the third installment in a regular report by the consulting firm Eclareon, done on behalf of an international group of sustainable energy interests. This installment was also the first to look at solar power in the commercial sector rather than the residential sector. It looked at a standard 30 kilowatt solar photovoltaic system for your average commercial building, and the built a methodology to assess its “leveled cost of energy” (LCOE) in seven different countries: Brazil, Chile, France, Germany, Italy, Mexico and Spain.

The LCOE of any source of power — solar, natural gas, coal, wind, etc — accounts for everything that goes into determining that electricity’s cost: installation, maintenance, investment, the electricity itself, depreciation, and so forth. The goal is to give a more complete picture of each power source’s economic position vis-a-vis its rivals.

According to Eclareon’s analysis, solar’s LCOE in Italy and Germany is now at “grid parity,” meaning it’s even with retail electricity prices in general in those countries. Spain’s already gotten there as well, and Mexico and France are coming up.

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