For a long time clean energy industries like solar and wind power have striven to generate energy at the same cost as traditional energy sources like gas or coal. As far-fetched as that possibility has seemed at certain points, that day appears to be coming for us very soon. The cost of generating electricity via solar and wind power has dramatically lowered over recent years, in fact in some markets it’s already cheaper than traditional fuels. greeNEWit, your clean energy expert in Maryland, is here with the reasons why this has happened and what is means for the future.
These dramatic changes in the affordability of clean energy have led to several companies signing contracts for solar and wind energy in the Great Plains states and throughout the American Southwest. While these services were originally made competitive thanks to generous government subsidies, recent changes have made it theoretically possible for clean energy producers to offer at comparative rates without them.
A recent study conducted by Lazard, an investment banking company, concluded that utility-grade solar energy costs about 5.6 cents a kilowatt-hour, with wind energy coming in as low as 1.4 cents. Meanwhile, natural gas and coal cost, on average, 6.1 and 6.6 cents a kilowatt-hour respectively. Even without subsidies, Lazard’s investigation illustrates that clean energy sources like solar costs about 7.2 cents a kilowatt-hour at the low end, and wind costs 3.7 cents.
Astonishingly, the price of solar-generated clean energy has dropped by over 70% since 2008 and the typical cost of installing utility-level solar facilities has fallen by over 33% in the same amount of time. Even homeowners and small businesses are seeing the benefits of this price drop. Last year, the typical cost for small-scale business and home solar installations dropped by 15% from the previous year.
The next big discussion over these clean energy sources is already taking place, with industry representatives looking to reinstate a 30% federal tax credit that is scheduled to decrease to 10% at the end of 2016. Similarly, wind-energy representatives are seeking to renew production tax credits that Congress has reinstated multiple times in the past. How that will play out is anyone’s guess, but what’s certain is that clean energy sources are finally ready to compete with traditional ones on a much larger scale.
Looking for Help Going Green with Clean Energy?
Call greeNEWit. greeNEWit is an energy solutions company created to help society build sustainable communities and better economies through conserving the use of natural resources. Our experienced technicians and energy experts can help you find the right clean energy source and provider for your home or business. greeNEWit can help you afford the home of your dreams through solar leasing, and we’re proud to offer both our commercial and residential clients a wide variety of choices in energy suppliers so you can be sure that your electricity is coming from renewable sources.
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