The cost of solar energy has reached a historic low

Experts from the International Energy Agency concluded that the cost of solar energy has fallen to record lows. Its production in four years began to cost companies and governments half as much.

In several countries of the world solar energy has become the cheapest source of electricity in history, largely due to policies to stimulate the growth of renewable energy. This is stated in a new report published by the International Energy Agency (IEA).

The study concerned more than 130 countries in the world that have policies to reduce the cost of building new solar plants. This is the first such analysis when the IEA took government policy into account when calculating the cost of solar energy in its annual World Energy Outlook report. According to their calculations, the cost of solar energy, compared to last year, has fallen by 20-50% in each region.

The experts who contributed to the report believe that solar energy will soon become the “new king of energy supply”. Oil prices are expected to continue to fall over the next decade, and solar energy is expected to become more affordable due to global efforts to combat climate change. The EU, for example, has set a target of obtaining 32 percent of its energy from renewable sources by 2030.

“It seems that green energy has political support, and we see this in many countries around the world,” said Brent Wanner, who leads the modelling and analysis of electricity production in the IEA. – These measures are really necessary to maintain the low costs that underlie the growth of solar energy.

The report also notes that in most countries it is cheaper to build solar farms than to build new coal or gas power plants. For solar energy projects completed this year, the average cost of electricity generation over the lifetime of the plant was between $35 and $55 per megawatt hour. Four years ago, the world average cost of solar energy was $100 per megawatt hour.