Tuesday, November 15, 2011

More on Solar Subsidies


Solar is cost competitive to gas, with lots of subsidies and government mandated purchasing. From the NY Times, A Gold Rush of Subsidies in Clean Energy Search

"P.G.& E., and ultimately its electric customers, will pay NRG $150 to $180 a megawatt-hour, according to a person familiar with the project, who asked not to be identified because the price information was confidential. At the time the contract was awarded, that was about 50 percent more than the expected market cost of electricity in California from a newly built gas-powered plant, state officials said."

I'm probably too hard on Krugman. 50% higher price for solar is "near," enough given that solar is seeing price declines of 7% per year. So only 5 or so years away from being at price parity. That is as long as the massive subsidies continue.


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