A new record low price for solar project bids has been reached, making it the second time this month that previous cost barriers were shattered. This time, the news comes from NV Energy, a Berkshire Hathaway-owned utility company serving the state of Nevada. The utility has signed a PPA to purchase electricity from the 100 MW Playa Solar 2 power plant at the amazingly low price of $0.0387/kWh. This beats the previous record set just a few weeks ago in Austin, Texas, by just a fraction of a penny per kWh. What’s clear is that, as competition heats up to provide less expensive solar power to the grid, we’re looking at a greener future.
Admittedly, this report has us feeling a bit of deja vu, and it’s justified. Less two weeks ago, we reported Austin, Texas had become the site of the lowest solar power bids on earth at just under $0.04/kWh, beating out the previous low price set in Dubai. And it was true, until it wasn’t. The new, new low price of $0.0387/kWh is approximately 68 percent cheaper than the national average electricity price, according to Clean Technica. Here’s what this means for regular folks: as public utility companies begin seeking out better deals on solar projects—and then hopefully see those prices actually fulfilled in procurement—a massive savings will be passed on to consumers.
Lazard, the world’s leading financial advisory, stays on top of what’s happening in the solar industry. Previous to the Austin record, the firm predicted solar bids would reach a low price of $0.06/kWh in 2017. Even adjusted to account for federal tax subsidies, the Austin and Nevada prices beat that mark, coming in at less than $0.0571kWh. The way we see it, if the experts in the global solar power market couldn’t predict these early and staggeringly low prices, anything is possible for this rapidly growing industry.
Via Clean Technica