It has fallen 50% in four years. I really push people to encourage the impact of 1/2 costs by 2016:
“Renewable energy becoming more cost-competitive with fossil fuels isn’t news – as technology improves and more clean power generation comes online, electricity without emissions gets cheaper. But one new analysis reveals just how shockingly cheap it’s gotten.
The levelized cost of electricity (LCOE) from wind and solar sources in America has fallen by more than 50% over the past four years, according to Lazard’s Levelized Cost of Energy Analysis 7.0, recently released by global financial advisor and asset manager firm Lazard Freres & Co.”
Keep in mind, renewables are very close to parity levels. Part of the reason people are noticing that feed in tariffs and subsidies to renewables cost a lot is because as they get close to parity, it becomes wildly profitable to build, invest, and start getting into the game of switching over and more people are doing it. Suddenly what’s been a bone tossed to hippie constituents that was a small line item explodes. Right now renewables don’t cost 2X standard fuel, they’re more like 30-50%, with the two big hurdles being storage and upfront capital needed (a cheap motor, and then you can make payments on gas in installments by paying as you go, wind or solar needs the big up front cost).
So, what happens in 2-3 years as it becomes seriously obviously cheaper? To the point where even dinosaur politicians who wave anti-green credentials as quick identity politics are suddenly finding themselves on the losing side of a very rapidly changing landscape?
A whole lot of interesting churn…