Breakthroughs in solar technology are likely to drive the cost of solar energy below that produced from fossil fuels and nuclear reactors within five years, according to the global research director at General Electric (GE). Mark M Little, speaking in an interview with Bloomberg, predicted that the cost of solar energy will fall to $0.15 per kilowatt hour or lower. “You’re going to have a lot of people that are going to want to have solar at home,” he told the news agency.
It will be difficult to quantify the exact crossover point when solar becomes cheaper than fossil fuels, in part because of the volatility of fossil fuel pricing. However, the Energy Information Administration predicted in its May Short-Term Energy Outlook that the average cost of electricity will increase slightly this year. In January 2011, the average retail price of electricity to residential customers in the US was just under $0.11 per kilowatt hour. Throughout this year, it is expected to average 11.84 cents per kilowatt hour.
Tags: Energy Cost, renewable, Solar
