Solar to be cheaper than gas by 2018

Britain’s solar power will be cheaper than gas by 2018, according to new industry analysis from the Solar Trade Association (STA).

It says that as long as the Government provides stable policy support, it will be cheaper to generate electricity from solar than by burning gas in as little as three years’ time.

Solar vs Gas and Electricity

The survey of STA’s member companies and their cost forecasts between now and 2030 shows that the cost of generating electricity from a typical 10MW solar farm in the UK is set to fall faster than many think over the next 15 years.

This is partly due to a growing solar supply chain in Britain, as well as falling global prices for solar panels and inverters.

In addition, it shows that solar will be cheaper than the wholesale price of electricity at some point between 2025 and 2028.

On the other hand, it says that the cost of generating electricity from gas is forecast to increase in real terms over the next 15 years, and will always be more expensive than wholesale power.

Subsidy-free

Paul Barwell, CEO of the Solar Trade Association says that UK solar is on its way to becoming subsidy-free.

However, he believes it critical that stable Government policy is maintained to support grid connected utility-scale solar as opposed to fossil fuel power stations.

He said that it makes political and economic sense for the Government to back large-scale solar, with the sector’s track record in creating jobs and producing ever cheaper zero carbon power.

He is calling for one final push from Government to get solar to being subsidy-free, which he calls a home grown solution to Britain’s energy crisis.

Andrew Crowther, Energy Analyst in Resources & Energy at Strutt & Parker said: “Whilst large scale solar projects have driven down industry costs, smaller scale projects on farm and business roofs across the UK will continue to play their part in the road to grid parity.

"Along with solar PV, onshore wind is also expected to achieve grid party around 2021 ensuring a mix of renewable technologies will continue to feed in to the grid. Taking an overview of the energy markets it is important to remember the price of wholesale electricity can fluctuate, increasing or decreasing the time it takes to achieve grid parity.”