Solar is Becoming Cost-Effective in More Places
Incentive-free solar projects are becoming more common. Unsubsidized developments in favorable climates like southern Europe have already achieved price parity with other types of energy, and the falling cost of solar installations is making this feasible in more places.
Northern Europe
- A German utility signed a contract earlier this year for an eighty five megawatt solar farm in Northern Germany without incentives.
- There are also two farms planned for the U.K. in York and Kingston upon Hull.
- The incentive-free system in York will be “37.4 megawatts of PV tied to a 27-megawatt, 30-megawatt-hour Samsung battery system, the largest solar-paired energy storage asset in the country.”
Alberta
- Alberta’s Ministry of Infrastructure has agreed to buy the energy produced by a 94 megawatt solar installation, which is being installed without the assistance of incentives.
- The installation is using solar panels which can produce on both sides, making use of the reflected light from long lasting snow.
- The installations are 50% owned by the Conklin Métis, an indigenous community from the oil-sands region of Alberta.
China
- China has been aggressively installing clean energy, but caused concern in the solar world last year when they halted incentives due to the large bill from so many projects.
- Their solution to continue rapid development while keeping costs in check is to develop several pilots for incentive-free solar.
- “The new subsidy-free projects will generate renewable power for sale at the same prices as non-subsidised coal-fired power plants, and will not have to comply with capacity quota restrictions…”
It’s clear that even in snowy northern climates, solar is a viable option. And as costs continue to come down, more and more solar won’t need assistance, subsidies or incentives to compete with fossil fuels.
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