About This Article:
As solar subsidies become less frequent (which is not a bad thing), the total cost of solar is shrinking. Fast.
But the following list of fossil fuels vs. solar shocked us. After all, we have all been told that solar is too expensive to compete with fossil fuel energy. That is changing:
List of Fossil Fuel Costs vs. Solar Power
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What Does This List Show Us?
This list of fossil fuels is direct from the US Energy Information Administration (the EIA). It shows us that solar energy should be cheaper (in terms of lifetime costs) than 6* fossil fuel energy sources, by the year 2022.
*We included the 7th (nuclear) on this list because it creates unbelievably toxic side waste. This side waste is extremely difficult to manage safely, and often lasts for millions of years in its toxic state.
This list also makes a powerful statement about using coal to power our future. Why? Because coal is predicted to be more than double the cost of solar by 2022. That means choosing solar for your home might be far better for your portfolio than investing in a coal-dependent stock!
For more information, please visit our technical details page (coming soon).
*We included the 7th (nuclear) on this list because it creates unbelievably toxic side waste. This side waste is extremely difficult to manage safely, and often lasts for millions of years in its toxic state.
This list also makes a powerful statement about using coal to power our future. Why? Because coal is predicted to be more than double the cost of solar by 2022. That means choosing solar for your home might be far better for your portfolio than investing in a coal-dependent stock!
For more information, please visit our technical details page (coming soon).
How We Measure These Costs: The LCOE (or "Levelized Cost of Energy")
You may have noticed that this list contains an unusual unit, called "LCOE" (short for "Levelized Cost of Energy"). So, what is LCOE and where does it come from?
The U.S. Energy Information Administration (EIA) is one of the most trusted names in estimating and measuring energy costs.
Their Annual Energy Outlook report regularly lists and predicts the cost of energy sources. They do it in a very useful way, however. They attempt to measure every possible cost of building and running a power plant, from day 1 to the end of its life.
These lifetime costs are all rolled into one measurement called the Levelized Cost of Energy (or LCOE). Basically, this LCOE gives you a value that you can use to measure lists of fossil fuels against lists of renewables.
If you would like more technical details, check out our technical information for professionals at this link: Levelized Cost of Energy (Links).
The U.S. Energy Information Administration (EIA) is one of the most trusted names in estimating and measuring energy costs.
Their Annual Energy Outlook report regularly lists and predicts the cost of energy sources. They do it in a very useful way, however. They attempt to measure every possible cost of building and running a power plant, from day 1 to the end of its life.
These lifetime costs are all rolled into one measurement called the Levelized Cost of Energy (or LCOE). Basically, this LCOE gives you a value that you can use to measure lists of fossil fuels against lists of renewables.
If you would like more technical details, check out our technical information for professionals at this link: Levelized Cost of Energy (Links).
Quick Notes:
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The LCOE (or Leveleized Cost of Energy (or Electricity)) is a unit created to take "everything" into account when comparing different ways of generating power. |
There are limitations to any kind of measurement, of course. But, the LCOE value gives a recognized foundation for comparing different electricity sources.
The Neck-and-Neck Race With Natural Gas
This list also shows us something else surprising: that the cost of solar is neck-and-neck with natural gas! This is a real shock, because natural gas has been extremely inexpensive since the fracking boom began.
Even more surprising however, is that only the most advanced forms of natural gas power beat solar's price. If electricity is generated with regular natural gas power plants, solar wins.
So, what is this special kind of natural gas power like?
Well, it makes use of an energy efficiency strategy that recycles heat exhaust. This recaptured heat is then used to spin a second turbine, giving it a "another bang for its buck," so to speak. This means that one turbine is spun using direct heat from burning natural gas. Then, a second one is turned using the heat exhaust that is left over afterward.
They call this advanced natural gas "combined cycle technology."
But even this super-efficient fossil fuel barely edges the cost of solar out (by only 10.3 $/MWh (LCOE)).
Even more surprising however, is that only the most advanced forms of natural gas power beat solar's price. If electricity is generated with regular natural gas power plants, solar wins.
So, what is this special kind of natural gas power like?
Well, it makes use of an energy efficiency strategy that recycles heat exhaust. This recaptured heat is then used to spin a second turbine, giving it a "another bang for its buck," so to speak. This means that one turbine is spun using direct heat from burning natural gas. Then, a second one is turned using the heat exhaust that is left over afterward.
They call this advanced natural gas "combined cycle technology."
But even this super-efficient fossil fuel barely edges the cost of solar out (by only 10.3 $/MWh (LCOE)).
List of Other Renewable Energies vs. Solar
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What Does This List Show Us?
Most surprisingly, it shows that solar should be competitive with hydroelectric power by 2022! That was a real jaw-dropper to us over here at Synchro Solar.
Why?
Because here in Oregon, we are conditioned to think of hydroelectric power as the "unbeatable renewable." It has been so cheap for so long, that few of us here in northwest even bother to question it.
In fact, only 10 years ago, the thought of solar power competing with hydroelectric was considered outlandish, at best. To think that solar will be on par in only 5-years time is truly shocking.
Of course, onshore wind is still the clear winner here, but not by a huge margin. Plus there are benefits to solar that exist outside of cost alone. ...Read on!
Why?
Because here in Oregon, we are conditioned to think of hydroelectric power as the "unbeatable renewable." It has been so cheap for so long, that few of us here in northwest even bother to question it.
In fact, only 10 years ago, the thought of solar power competing with hydroelectric was considered outlandish, at best. To think that solar will be on par in only 5-years time is truly shocking.
Of course, onshore wind is still the clear winner here, but not by a huge margin. Plus there are benefits to solar that exist outside of cost alone. ...Read on!
The Benefits of Solar, Beyond LCOE
Solar’s Effect on a Distributed Grid
Solar energy may be cost competitive in the near future. But there are additional benefits that are not easily captured by cost alone. One of the most exciting aspects of solar power is that it has massive potential for creating a decentralized energy grid.
What Is a Decentralized Energy Grid?
Well normally, a power plant in one location generates every kWh (kilowatt-hour) of energy we use. Fossil fuels are very good at this. In fact, generating electricity from them in any other way would be very difficult. This is called point-source electrical generation and it means that power is produced in a central place.
But it does not have to be this way. The roof of your home can be a power plant also!
In fact, when a homeowner "goes solar," what they are really doing is building a tiny power station. They can put it on their roof or in their yard (if it is ground-mounted).
This solar power plant is then connected to the same network of interconnected wires that we all use for electricity (called "The Grid"). During the day, this solar generator pumps any extra solar power you don't use, back into this grid of wires.
Add up a whole bunch of these tiny generators, and some serious power can be delivered. But not from a central location - instead it is decentralized.
Generating a little power in a lot of different places this way is called distributed generation, and it is the heart of the rooftop solar concept.
Advantages to Communities With Rooftop Solar Generators
Distributed generation has its advantages.
According to the U.S. Department of Energy, these advantages could be substantial. They include:
So, believe it or not. Rooftop solar power owners really are helping out the planet. Not just by reducing their fossil fuel footprint, but also by stabilizing the power grid, reducing ecosystem impacts and making the grid itself a higher quality resource for everyone involved.
Want to get involved as a solar power generator here in Oregon and Washington? Check out the Steps to Going Solar in the Portland-Vancouver area!
What Is a Decentralized Energy Grid?
Well normally, a power plant in one location generates every kWh (kilowatt-hour) of energy we use. Fossil fuels are very good at this. In fact, generating electricity from them in any other way would be very difficult. This is called point-source electrical generation and it means that power is produced in a central place.
But it does not have to be this way. The roof of your home can be a power plant also!
In fact, when a homeowner "goes solar," what they are really doing is building a tiny power station. They can put it on their roof or in their yard (if it is ground-mounted).
This solar power plant is then connected to the same network of interconnected wires that we all use for electricity (called "The Grid"). During the day, this solar generator pumps any extra solar power you don't use, back into this grid of wires.
Add up a whole bunch of these tiny generators, and some serious power can be delivered. But not from a central location - instead it is decentralized.
Generating a little power in a lot of different places this way is called distributed generation, and it is the heart of the rooftop solar concept.
Advantages to Communities With Rooftop Solar Generators
Distributed generation has its advantages.
According to the U.S. Department of Energy, these advantages could be substantial. They include:
- Increased electric system reliability
- Reduction of peak power requirements
- Provision of ancillary services, including reactive power
- Improvements in power quality
- Reductions in land-use effects and rights-of-way acquisition costs
- Reduction in vulnerability to terrorism and improvements in infrastructure resilience
So, believe it or not. Rooftop solar power owners really are helping out the planet. Not just by reducing their fossil fuel footprint, but also by stabilizing the power grid, reducing ecosystem impacts and making the grid itself a higher quality resource for everyone involved.
Want to get involved as a solar power generator here in Oregon and Washington? Check out the Steps to Going Solar in the Portland-Vancouver area!
Innovative Solar Applications
Another advantage to solar power is its flexibility.
While many other renewable energy sources are confined to producing electricity to meet energy needs, the heat of solar power itself can also be harnessed, cleanly and directly.
Solar water heaters, for example, are becoming one of the most cost-effective ways to supply a home with hot water. Instead of using electricity or natural gas to heat up a home’s water supply, solar water heaters use the natural heat of the sun to do so (or at least assist in the process).
The U.S. Energy Department recently published some impressive numbers on the effectiveness of these systems. For instance, consumers can expect to save about 50% to 80% on their water heating bills after installing these types of heaters.
While many other renewable energy sources are confined to producing electricity to meet energy needs, the heat of solar power itself can also be harnessed, cleanly and directly.
Solar water heaters, for example, are becoming one of the most cost-effective ways to supply a home with hot water. Instead of using electricity or natural gas to heat up a home’s water supply, solar water heaters use the natural heat of the sun to do so (or at least assist in the process).
The U.S. Energy Department recently published some impressive numbers on the effectiveness of these systems. For instance, consumers can expect to save about 50% to 80% on their water heating bills after installing these types of heaters.
The Final Word on Solar and Its Competition
When all aspects of solar power are taken into account, its recently declined price point, its predicted economic viability and its flexibility for distributed applications, the future of solar looks bright indeed.
Across the country, and especially here in Oregon, we've seen landmark predictions that clearly demonstrate the growing status of solar power. Solar is going mainstream, and even developments that appear unfortunate are actually indicators of a healthy solar industry.
In addition, considering solar energy for our homes protect us against rising utility rates, while helping to stabilize our electrical grid. A true "win-win" situation for everyone involved!
Across the country, and especially here in Oregon, we've seen landmark predictions that clearly demonstrate the growing status of solar power. Solar is going mainstream, and even developments that appear unfortunate are actually indicators of a healthy solar industry.
In addition, considering solar energy for our homes protect us against rising utility rates, while helping to stabilize our electrical grid. A true "win-win" situation for everyone involved!
