Environmental Valuation & Cost-Benefit News

Link: http://www.solarcentury.co.uk/Press/Press-Releases/Solar-electricity-as-cheap-as-conventional-electricity-in-UK-by-2013

A common assumption, in Government and the traditional energy industry, is that solar electricity will not be as cheap as conventional electricity from coal, gas and nuclear power for more than two decades. For this apparent reason, solar photovoltaics (PV) have tended to play a very minor role in UK energy policy scenarios to date. Yet globally, the solar photovoltaics market is the fastest-growing of all energy markets. In the first three quarters of 2008 more than half of all venture capital investments in cleantech went into PV. ... The spectacularly fast growth of the German solar market in recent years shows that this revolution applies just as much to cloudy countries as sunny regions (4). And even in the UK solar PV has been by far the most popular renewable energy technology in the governments Low Carbon Buildings Programme. Now, new data contradicts the old assumptions.

On May 13, 2009 Solarcentury presented a new analysis showing that solar roofs on British homes will be generating electricity as cheap as conventional electricity ( a situation known as "grid parity") by 2013, and progressively cheaper each year thereafter. The race to grid parity is a major focus for the global solar industry. The numbers the company uses are from a recent study for the Department of Business by independent consultants, from field-tested performance data from Solarcentury's own numerous installations around the UK and in line with the Government's own modelling, and from prices available to the company from supply partners around the world. The details of the analysis are in the attached annex.

Derry Newman, Solarcentury Chief executive and former Managing Director of Sony UK, said: "even with conservative assumptions about electricity price inflation in the next few years, the solar industry has the potential to beat conventional electricity on domestic roofs within the term of the next government. If the current government allocates some of its green new deal stimulus-funding to accelerating solar into the mass market, we will be able to generate a jobs-rich new industry much faster than many people believe possible."

The German experience has shown that tens of thousands of jobs can be created within just a few years. Every megawatt of solar PV capacity creates 7-11 jobs, compared to less than 3 for every megawatt of wind power and 1 to every megawatt of coal and gas-fired generation.

Jeremy Leggett, Solarcentury Executive Chairman and an experienced investor in the solar industry overseas, said: "The feed-in tariff that the government has said it will bring in from April 2010 is vital. A burst of premium-pricing for solar energy, of the kind now on offer in 18 European countries, will stimulate a very fast-growing market, and if the green new deal involves explosive growth of energy-efficiency markets in parallel - as it must - people will be amazed at how much of the government's UK renewable-electricity target solar will be able to meet by 2020. The feed-in tariff will be ramped down over a few years. This is not like nuclear, where the market has to be underwritten with public money essentially for ever."

The full report can be downloaded at http://www.solarcentury.co.uk/content/download/15081/262086/file/UK-PV-report-03-09.pdf

Solarcentury is one of Europe’s leading solar energy companies, specialising in the design and supply of building integrated solar thermal and solar electric technology. Solarcentury is in business for a purpose: to help create a cleaner world and a sustainable future. The company offers support and guidance throughout the entire micro renewable planning and development process, from land appraisal through to design, installation and marketing.

Solar Century www.solarcentury.co.uk
Press Release dated May 13, 2009