How Solar Energy Got So Cheap

In 1976, the price per watt of energy generated by solar photovoltaic was over $100. In 2019, it was less than 50 cents per watt, a price decline of 99.6%. Even since 2009, solar has declined 90% in price. So what’s behind that incredible drop? Industry played a part but the main driver was forward-thinking government policy and subsidy of solar by countries like the US, Japan, Germany, and China:

In the course of a single lifetime, solar energy has transformed from a niche technology to the cheapest way to bring clean, reliable power to billions of people around the world. But the markets that brought us these lower prices didn’t just magically appear by some invisible hand. Political leaders in countries all over the world created these markets, then subsidized them for decades to the tune of billions of dollars. “By investing that money, you got the solar to come down in costs to the point where you don’t need to subsidize it anymore.”

One of the experts in the video, Gregory Nemet, is the author of a book called How Solar Energy Became Cheap: A Model for Low-Carbon Innovation if you’d like to read more on the development of solar.

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