Solar energy increasingly competitive

Developments on the international solar electricity market are proceeding at a rapid pace. These days a solar cell costs just half of what it did four years ago. Solar cell producers in places like China are giving companies in Germany and the US a real run for their money. Meanwhile, those that produce their own solar electricity are seeing costs that are compareable to normal electricity grid users. This is putting the pressure on the established electricity companies. Industry figures indicate that last year solar energy plants capable of producing 27 gigawatts (GW) of energy were installed around the world. That lifted international solar production to around 67 GW. By 2020 that is expected to increase to 430 GW - about the same as 80 nuclear power plants could produce. Changing trends in Germany As a producer of some 25 GW of solar power, Germany is the current leader in photovoltaic energy production. Although German industry creates high energy demands, some four percent of domestic electricity is already covered by solar power. The comparatively high use of solar energy in Germany is due to the leading role played by private consumers and the agricultural sector. The Federal Renewable Energy Act has also been instrumental because it provides subsidies for renewable energy sources, such as solar, wind and biogas. Renewables now make up around 20 percent of the German energy market. The German Environment Ministry predicts a doubling of that figure by 2020. Self-produced solar power Such rapid development on the solar energy market has even surprised analysts. Thanks to the price drop for photovoltaic cells, private solar parks in Germany now offer cheaper power for the consumer than traditional energy providers. Even when taking into account the initial investment, one kilowatt-hour (kWh) of electricity costs 0.24 euros ($0.31). Electricity from a traditional provider costs about four percent more. Self-produced solar power becomes especially cost-effective when it is used long-term. In addition to benefiting from the state subsidy, consumers that are not reliant on the grid also avoid the electricity price hikes the market has seen. In the last 10 years German energy prices have risen by more than 50 percent. Solar energy\'s newfound competitiveness is best shown by a case study from the Atacama desert in Chile where operators have set up a major solar farm without any government assistance. The plant is meant to provide power for a copper mine. According to the magazine \"Photon,\" each kWh of solar electricity produced on site costs less than 0.10 euros. From: DW