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Power Government United States

Solar Is Cheapest Electricity In History, US DOE Aims To Cut Costs 60% By 2030 (cleantechnica.com) 243

Solar is becoming the cheapest option for new electricity in the world, but there's still room to improve. According to a new cost-reduction target announced today, the U.S. Department of Energy aims to cut utility-scale solar power plant costs by 60% by 2030. CleanTechnica reports: So, how does the DOE intend to help cut solar power costs so much by 2030? First of all, the U.S. DOE's Solar Energy Technologies Office (SETO) sees two materials used in solar cells as critical to this brighter solar future perovskites and cadmium telluride (CdTe). The department is [spending] $63 million to try to help with these solar cell innovation goals. In the DOE's own words:

- $40 million for perovskite R&D: Perovskites are a family of emerging solar materials that have potential to make highly efficient thin-film solar cells with very low production costs. DOE is awarding $40 million to 22 projects that will advance perovskite PV device and manufacturing research and developmentâ"as well as performance through the formation of a new $14 million testing center to provide neutral, independent validation of the performance of new perovskite devices.
- $3 million Perovskite Startup Prize: This new prize competition will speed entrepreneurs' path to commercializing perovskite technologies by providing seed capital for their newly formed companies.
- $20 million for CdTe thin films: The National Renewable Energy Laboratory will set up a consortium to advance cheaper CdTe thin-film solar technologies, which were developed in the United States and make up 20% of the modules installed in this country. This consortium will advance low-cost manufacturing techniques and domestic research capabilities, increasing opportunities for U.S. workers and entrepreneurs to capture a larger portion of the $60 billion global solar manufacturing sector.

"Today's announcement also supports several concentrating solar-thermal power (CSP) projects," the department notes. Here are details from the DOE:

- $33 million for CSP advances: The new funding opportunity also includes funding for improvements to the reliability and performance of CSP plants, which can dispatch solar energy whenever it is needed; identifies new solar applications for industrial processes, which contribute 20% of U.S. carbon dioxide emissions; and advances long-duration thermal-energy storage devices. Long-duration energy storage is critical to decarbonizing the electricity sector and couples well with CSP plants, but the cost must fall by a factor of two to unlock deployment.
- $25 million to demonstrate a next-generation CSP power plant: Sandia National Laboratories will receive funding to build a facility where researchers, developers, and manufacturers can test next-generation CSP components and systems and advance toward DOE's 2030 cost target of 5 cents/kWh for CSP plants.

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Solar Is Cheapest Electricity In History, US DOE Aims To Cut Costs 60% By 2030

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  • by h33t l4x0r ( 4107715 ) on Saturday March 27, 2021 @05:12AM (#61204550)
    It's hard to imagine it not being sustainable.
  • by Bearhouse ( 1034238 ) on Saturday March 27, 2021 @06:03AM (#61204590)

    Do what the Japanese have done successfully, don't export your most advanced technology or let Chinese "students" steal it. Keep it and associated jobs and know-how at home.

  • by bobstreo ( 1320787 ) on Saturday March 27, 2021 @06:40AM (#61204628)

    that I disconnect from the grid, with cheap, efficient solar cells, and a big battery bank for when the sun isn't shining, and pay less a month for the setup than I was to the electrical company.

    • Re: (Score:3, Interesting)

      by Anonymous Coward

      Been there, done that. I've been off-grid for 18 months now. My home battery is from a crashed Leaf so 24kWh. That's more than enough for a week without sun or wind. 12kW of Solar plus 2 kW of Wind keep things topped up. When the battery is full (like right now) the excess goes into my car. The sun is shining and the wind has been blowing hard for the last 36 hours.
      I bought a 25acre wood 5 years ago. I burn the wood from that in winter to heat my home. There are more trees growing in the wood today than th

      • by nukenerd ( 172703 ) on Saturday March 27, 2021 @08:27AM (#61204864)

        I bought a 25acre wood 5 years ago. I burn the wood from that in winter to heat my home. There are more trees growing in the wood today than there were when I bought it. .... With careful planning, many more people can give the power companies the big finger.

        Yes, everyone should buy a 25 acre wood. Where do you live BTW, Siberia? I am in the UK and very unusually have a 2 acre garden with enough trees, sustainably, to burn a fire for about 2 hours per night through winter. But the average garden size (if there is a garden) in the UK is about 1/8 acre and rarely has any tree larger than an ornamental cherry.

      • Many more, but a tiny percentage.

        Wood burning is cheap, but the acreage needed for the entire population is extreme ... in say the UK it would take the entire UK.

    • by amorsen ( 7485 )

      that I disconnect from the grid, with cheap, efficient solar cells, and a big battery bank for when the sun isn't shining, and pay less a month for the setup than I was to the electrical company.

      This is unlikely to happen. Grid electricity prices are going to drop dramatically in the next decade. Every improvement that makes your home solar installation cheaper will also benefit the grid electricity.

      (Unless politics get in the way of the utility-scale buildout of solar and batteries.)

      • Grid electricity prices are going to drop dramatically in the next decade.

        You certainly have some nice dreams.

        • I don't think it's that far fetched.

          The problem is exactly what this article is talking about. Solar is so cheap that there's almost no reason not to install it. I've been holding back because solar has been dropping in price by almost as much as it would save me in a given year. With current solar technology, I can generate on average what I use in a year. That doesn't work out perfectly, however, because I'd have an excess in the summer and a deficit in the winter. But it's already close.

          Another decade of technology, and I'm pretty confident that I'll be able to go 100% solar and disconnect from the grid.

          Thee utilities won't be able to refuse to pass along savings from cheaper electricity in that case. If they want any money from me at all, they're going to have to provide reasonable prices. Otherwise it makes my disconnection more fiscally sound. And it's not like I'm going to be the only one in this position.

      • by Ol Olsoc ( 1175323 ) on Saturday March 27, 2021 @09:14AM (#61204998)

        that I disconnect from the grid, with cheap, efficient solar cells, and a big battery bank for when the sun isn't shining, and pay less a month for the setup than I was to the electrical company.

        This is unlikely to happen. Grid electricity prices are going to drop dramatically in the next decade. Every improvement that makes your home solar installation cheaper will also benefit the grid electricity.

        (Unless politics get in the way of the utility-scale buildout of solar and batteries.)

        One of the biggest expenses that is causing a lot of people to go off grid is that if they build outside a development, they have to pay for running the lines to their house. If you live a mile back of a power line, you foot the bill for getting the power to the house. And it is often a lot more expensive than placing a solar panel setup and a powerwall. You can save even more if you are clever and design your own off-grid system.

        • by amorsen ( 7485 )

          Yes, if you happen to be American and build somewhere far from the grid, and you don't live in a place with winter, you can get quite far with solar panels and a powerwall. However, anywhere that has winter will need a non-solar option for heating.

      • by AnotherBlackHat ( 265897 ) on Saturday March 27, 2021 @10:31AM (#61205216) Homepage

        Delivery is actually a significant part of the cost of grid electricity.
        Lower the cost of solar, and grid electricity prices go down, but the cost of rooftop solar goes down faster.
        Eventually, the cost of local solar is lower than the cost of delivery by itself.
        We are already very close to this point, and all indications are that production costs are going to continue to decline.

        • by amorsen ( 7485 )

          Eventually, the cost of local solar is lower than the cost of delivery by itself.

          Sure, but any place that has winter will not be able to cover its winter demand with local solar plus batteries. That would require battery prices to fall by at least 2 orders of magnitude (or require each house to have unrealistically large solar cell arrays like 100kW).

          At the same time, grid cost is mostly fixed, most of the expense is in handling peak demand. As average grid demands go up (electric cars, heating, A/C) but peak (cooking) stays the same, the grid cost per kWh delivered will go down. The ex

          • by radl33t ( 900691 )
            Most of NA and EU will switch from cooling peaks to heating peaks as natural gas is displaced by heat pumps. These peaks will be larger and must also manage EVs. This will drive capacity expansion on the order of 2-3x. Distribution costs could come down, but I doubt it. We have been under investing in electric infrastructure and deferring maintenance for decades. Obviously sophisticated infrastructure planning and grid management can vastly reduce these needs and overall costs at higher reliability to all u
            • by amorsen ( 7485 )

              EVs are trivial to charge off-peak. Storing heat with heat pumps is pretty easy. Battery costs are already low, and they will only get even better.

              In 5 years there will not be a significant daily peak at all, it will be smoothed out by EVs, heat pumps, and batteries. That will enable consumption to triple without any significant expansion of the grid.

  • by petes_PoV ( 912422 ) on Saturday March 27, 2021 @07:20AM (#61204684)

    the U.S. Department of Energy aims to cut utility-scale solar power plant costs by 60% by 2030.

    Promising people (or utilities) that products will be significantly cheaper in the future is a great way to discourage them from buying what is available now.

    One of the reasons why a little inflation is a good thing is that it encourages early buyers. They expect products to be more expensive if they wait. Likewise, telling consumers or industry that if they can wait 9 more years, they can save 60% starts people making cost-benefit calculations.

    And that doesn't even account for whether the solar power plants of the future will be more efficient or last longer, than those being built now. Factors that would make waiting even more attractive.

    • by hey! ( 33014 )

      We went through this with computers, but it didn't stop adoption of computers. Sure, it made you hold off for a bit on discretionary purchases, but ultimately when you *needed* a computer you had to buy it.

      If demand goes up, or old plants get shut down, a utility is going to build a new plant, even if the technology would be cheaper in ten years time.

  • The article says the cost of financing a solar project is lowest. That doesn't mean the power itself is cheaper; it only means solar projects are heavily subsidized. Which is false economy anyway; subsidies don't lower the total cost of the project because someone has to pay the subsidy.
    • Re: (Score:3, Insightful)

      by rndmtim ( 664101 )

      The only existing subsidy right now in the US is the investment tax credit (ITC) of 26% of the cost of install (sometimes this is matched at the state level at a lower percent). Nuclear has a larger subsidy in many places now. https://www.eia.gov/todayinene... [eia.gov]

      The ITC was scheduled for phaseout until last fall, and it will hold at 26% for two more years and then go to 22%, then 18%, etc., reflecting the maturity of the industry.

      As for the power... yes, the fuel costs are enormous! Especially when you factor

      • It needs to beat gas the fuel, not the "levelized" cost of gas power in current year.

        You need the gas plants any way, near 100% fossil/nuclear backup will remain an absolute requirement for any country which wants reliable power.

  • by Elledan ( 582730 ) on Saturday March 27, 2021 @08:27AM (#61204862) Homepage
    The problem with metrics like $/MWh is that this is only relevant in an energy market, i.e. the speculative market which Texas had such an entertaining run-in not too long ago.

    In a capacity market, however, energy is sold as a guaranteed N% availability within ~3 years. E.g. 75% up-time of a coal plant, with maintenance known in advance, or the ~90% capacity factor of a nuclear plant.

    Of course, investors hate the capacity market, because it means having to provision over-capacity and such. Meaning assets which just sit there, doing nothing. This makes the capacity market a long-term investment, much like bonds.

    In the energy market, on the other hand, one sells power when one has it, at the price that gets offered. Since for e.g. VRE (solar, wind) the up-front costs are relatively low, this makes them a solid investment, with quick ROI. No assets standing around, and rapid money flow into one's pocket.

    The energy market is more akin to shorting stocks, however. After the mishap in Texas, many who gambled in the energy market are now bankrupt, while others struck paydirt by getting $9,000/kWh, assuming they had any generating capacity.

    In the end, only the capacity market can provide any guarantee of power being available. Yet the transition to VRE means a shift from a capacity market to an energy market. This is the natural consequence of picking power sources which have a capacity factor of exactly 0 in the capacity market. VRE doesn't work in the capacity market. Not even with grid-level storage. Not at anything remotely affordable.
    • by rndmtim ( 664101 )

      Massachusetts and ISO-NE give capacity factors for solar + BESS plants(the "forward capacity market" in ISO-NE). We're getting between 27 and 32% after study. The PV+ BESS plants can also do system regulation. In fact, in Texas, BESS plants are being installed at a huge pace because the alternatives (huge cap banks, synch condensers) are the only the only thing that will allow all of that wind to get to market in their terrible transmission system... (ERCOT summer voltage is 85kV L-G in a 115kV system = "th

    • by PPH ( 736903 )

      Of course, investors hate the capacity market, because it means having to provision over-capacity and such. Meaning assets which just sit there, doing nothing. This makes the capacity market a long-term investment, much like bonds.

      In this case, 'investors' also include the homeowner who sinks $10K or more into a roof top solar installation based on its payback. And then screams when the grid operator says we don't need your power today [slashdot.org]. Revenue minus capital costs go negative and all of a sudden solar doesn't look so good. Not just solar, but anything that lies outside of the long term system planning domain.

      • That is not how a retail net metering agreement works. You are describing curtailment for generators bidding into the ISO markets.

        • by PPH ( 736903 )

          Once a sufficient number of people enter into net metering contracts, the grid can become unstable. Curtailment at the retail level might become a necessary part of retail contracts.

    • Comment removed based on user account deletion
  • by account_deleted ( 4530225 ) on Saturday March 27, 2021 @09:28AM (#61205036)
    Comment removed based on user account deletion
    • Re: (Score:3, Interesting)

      by PPH ( 736903 )

      I see this as the next rural conservative vs urban liberal divide. People with a house out in the country can put up solar panels and get off the grid (no longer contributing to it's upkeep). Urban dwellers in high rise commie blocks with no rooftops to call their own are left with thermal power generation, long transmission lines and big bills.

      • Long as one ignores that the owner of said roof can put up panels. Bigger question is there enough benefit to go around? Also there's the larger issue of doing something for one's own benefit, vs doing something for societies benefit. People contribute all the time to society even if they don't directly benefit.e.g. socialism.

        • by PPH ( 736903 )

          Long as one ignores that the owner of said roof can put up panels.

          It won't matter. The primary factor at work is square feet of roof space compared to the square feet of living space covered. With a 20 or 40 story residential building, there just isn't as much roof space per square foot of occupancy as there is with a one story ranch house. And if the rental value of that high rise roof space to competing uses is considered, much of it might be taken up by 5G antennas.

    • by hey! ( 33014 ) on Saturday March 27, 2021 @10:24AM (#61205192) Homepage Journal

      Cheap battery technology will also help stabilize the grid and reduce costs. We've already seen that with Australia's Hornsdale Power Reserve, which basically paid for itself in two years.

      Most people won't be able to completely meet their energy needs from solar panels and batteries on their property so they'll still need a grid connection. And underused capacity means cheaper electricity, which in turn means greater electricity use -- more industrial uses, more e-vehicles etc.. Sure if overnight half the population decided to disconnect from the grid the grid would collapse, but if that happens gradually, over ten or fifteen years, that's a different story.

  • I like solar panels, because there are no moving parts in the system. Therefore, no noise and low maintenance. In my neck of the woods, a wood fired steam engine would provide cheaper power than the electric grid, but the neighbours may not like the noise and smoke and it would require constant work and maintenance to run it.
  • Like Solyndra, this is a good idea. Like Solyndra, it could also be easily torpedoed by Chinese product dumping. Biden will have to watch China like a hawk for this to avoid letting them tar and feather him at will, which they're probably all too eager to do in retaliation for him calling out the Uighur genocide.

    • by bussdriver ( 620565 ) on Saturday March 27, 2021 @11:20AM (#61205354)

      1) The loan program Solyndra was in had a lower failure rate than a bank despite funding far more risky ventures banks wouldn't fund. Government programs are supposed to fill the gaps so the impossible is possible. Some losses are acceptable; besides it's not like it didn't stimulate the economy more than a tax cut. We have a massive amount of pork that serves no greater good or is just bad that dwarf the Solyndras.

      2) You can't control what China does; especially now when they are arguably the biggest super power. Hey, when Americans admit they are #2 they'll probably have to be #8. You COULD subsidize an industry more than China does, if you have deep enough pockets.

      3) Cheap solar was decided to be MORE important than slapping tariffs on China's take over of the solar industry. They put priority on it while the USA could hardly do anything with the GOP ("corrupt" being redundant) opposing any tariff (until Trump) and fighting anything with the word "green" or "climate" in it. The obvious choice was to let China win for the greater good; besides, it's not like anybody couldn't enter the market later on... perhaps stealing China's ideas for a change...

      4) Funding R & D is not a waste even if China eats our lunch (again) because at least one hopes the knowledge and science advances humanity in some way... We don't really need cheaper solar in a decade - that is largely an attempt to jump start US industry (and more patent fights with China.) What we need is to ramp up existing tech like China has been doing with solar. Short term we need to move NOW not wait for the next-gen and the political will to make it locally. I'd swear big oil is behind this BS about constantly delaying for the next-gen which solves all humanity's problems (yeah, like coal and oil does...)

  • So, the idea is to externalize development costs for favored technologies. Then, not having to pay those back, it's cheaper! Eureka!

  • I had to drill down a bit, but this idea that solar is "cheapest" seems to rely on LCOE figures, which arguably downplay or ignore the intermittency problem Which is to say, solar is cheap if you ignore that it's incomplete by itself and needs something else (storage tech, grid upgrades and/or another power source to do in-fill). On the other hand, they're saying something about capital costs coming down, which sounds like a real improvement. (And on the wider subject: if I'm mis-reading this, it's a fine example of a long-time solar skeptic embracing willful ignorance, but if this endless barrage of glowing, breathless pro-solar headlines are at best exaggerated, then there's another group of well-intentioned, intelligent people who are managing to delude themselves...)
    • by radl33t ( 900691 )
      So what you are saying is that solar is the cheapest electricity ever, but may not meet all our needs? Since solar is basically negligible on the NA grid, can we revisit your concerns after we displace 20-30% of generation by a significantly cheaper and cleaner option? That would be really helpful ok?

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