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The cost of solar energy has dropped dramatically in recent years and is now competitive with or cheaper than fossil fuels in many parts of the world:
  • Solar energy costs average between 3-6 cents per kilowatt-hour (kWh) and are trending downward[3].
  • Global coal prices have historically averaged 6 cents/kWh. Fossil fuel steam averages around 5 cents/kWh, and small-scale natural gas can be as low as 3 cents/kWh[2].
  • In 2016, a major commercial solar installation bid an extremely low price of 2.9 cents/kWh, effectively leveling the playing field with fossil fuels' cheapest offerings[2].
  • Without subsidies, solar is likely the cheapest energy source in the world, as demonstrated by record low power purchase agreements in countries like the UAE and Chile[2].
  • The upfront costs of solar systems have dropped significantly, with the average cost ranging from $2.40 to $3.60 per watt installed[1].
However, fossil fuels still have the advantage of being a reliable, consistent source of energy. Solar's intermittent nature requires energy storage or baseload power from other sources to maintain grid reliability[1].
Overall, the cost comparison between solar and fossil fuels is complex, with factors like subsidies, environmental impacts, and reliability playing a role. But the rapidly falling costs of solar make it an increasingly attractive and cost-competitive option in many situations.
Sources [1] Fossil Fuels are Fiat Energy. Reorg of the mining space coming ⚒️ \ stacker news ~bitcoin #254491 [2] Solar Energy vs Fossil Fuels: How Do They Compare? | EnergySage https://www.energysage.com/about-clean-energy/solar/solar-energy-vs-fossil-fuels/ [3] Solar Energy vs. Fossil Fuels: The Great Debate https://www.bluesel.com/blog/solar-energy-vs-fossil-fuels-the-great-debate/ [4] Renewables vs Fossil Fuel Cost Comparisons, without Subsidies https://sustainability.stackexchange.com/questions/10641/renewables-vs-fossil-fuel-cost-comparisons-without-subsidies [5] Is Solar Really Cheaper Than Fossil Fuels? - Smart Cities Dive https://www.smartcitiesdive.com/ex/sustainablecitiescollective/solar-really-cheaper-fossil-fuels/1106159/