Re-considering the economics of photovoltaic power
A new working paper argues that common perceptions about the lack of competitiveness of solar photovoltaic power are misleading and out-of-date The paper shines light on the competitiveness of solar photovoltaics (PV) as it looks at the implications of the sharpest falls in the prices of PV technology in recent history. This work is the result of close collaboration by colleagues with exceptional insight into the economics of solar power. Average PV module prices have fallen by nearly 75% in the past three years, to the point where solar power is now competitive with daytime retail power prices in multiple countries. The paper also examines the metrics generally used to measure the economics of solar power against alternative power generating technologies, and finds they are often inadequate, and may introduce bias against the deployment of PV technology. The authors' aim is to inform policy-makers, utility decision-makers, investors and advisory services, in particular in high-growth developing countries, as they weigh the suite of power generation options available to them.