Since 2010, the cost of producing solar energy in countries like China, India and Brazil has come down to one third of its price, according to this Fortune report. In terms of low production cost, it has surpassed wind energy and in many cases, it is also surpassing coal and gas. Therefore, solar energy is fast becoming the cheapest energy in the world. Bloomberg New Energy Finance (BNEF) recently reported that solar power has entered “the era of undercutting” fossil fuels.
2016 has experienced a remarkable fall in the price of electricity from solar energy, says the Bloomberg report. The company cited a $64 per megawatt per hour contract in India and $29.10 per megawatt per hour contract in Chile – about 50% less price than producing electricity from coal.
The world’s largest solar power plant has been installed in Tamil Nadu in India.
With vast regions of sunshine countries like India can become major suppliers of solar power. In fact, there is so much solar power availability in India that eventually the cost of producing and distributing solar power may come down to as low as free, although we are a long way from achieving that.