How solar energy got so cheap, and why it's not everywhere (yet)

Summary

Solar energy has rapidly become the cheapest form of electricity generation, yet it still only accounts for 3% of global electricity. The price drop is attributed to advances in U.S. technology, policy support in Germany, and China's manufacturing dominance. Despite its potential, solar energy's reliance on sunlight creates challenges like the 'duck curve'—an imbalance in energy demand and supply. However, innovations in lithium-ion battery storage are making solar more viable, with projections that it could supply 23% of global electricity by 2050, possibly even more as technology continues to evolve.

Takeaways

• 😀 Solar energy has become the cheapest way to generate electricity, even cheaper than coal.
• 😀 Despite its affordability, solar energy only accounts for about 3% of global electricity production.
• 😀 Solar prices have fallen dramatically, from $4 per watt in 2005 to just 20 cents today.
• 😀 The drop in solar costs was driven by three factors: U.S. innovation, Germany creating a market, and China scaling up production.
• 😀 The U.S. invented the modern solar cell, while Germany incentivized renewable energy adoption.
• 😀 China became the world’s leading producer of solar panels, accounting for 70% of global production.
• 😀 One major challenge with solar energy is that it only works when the sun is shining, limiting its reliability.
• 😀 The duck curve illustrates the problem of solar energy production peaking during the day when demand is lower, and falling at night when demand spikes.
• 😀 Traditional power plants struggle to ramp up quickly to meet the evening peak demand when solar production drops.
• 😀 Lithium-ion batteries are a promising solution for storing solar energy, allowing it to be used later during peak demand hours.
• 😀 While lithium-ion batteries are becoming more affordable and efficient, other storage solutions like flow batteries, pumped hydro storage, and hydrogen are also being explored.

Q & A

Why has solar energy become the cheapest way to generate electricity?

Solar energy has become the cheapest way to generate electricity due to a significant drop in the cost of solar panels. Over the past few decades, the price of solar panels has decreased dramatically, from around $4 per watt in 2005 to about 20 cents per watt today.

What are the main factors that contributed to the drop in solar energy costs?

The main factors include the US developing the technology for solar cells, Germany creating a market by implementing laws to boost renewable energy, and China producing solar panels at a massive scale, making the technology more affordable worldwide.

Why does solar energy only generate power when the sun is shining?

Solar energy depends on sunlight to produce electricity, so it is ineffective during cloudy days or at night when there is no sunlight. This intermittent nature of solar energy has been a major challenge in using it as a primary power source.

What is the 'duck curve' and how does it relate to solar energy?

The 'duck curve' represents the pattern of electricity demand in regions with high solar energy usage. It shows a dip in demand during the day when solar energy is abundant, and a sharp rise in demand during the evening when the sun sets. This curve highlights the challenges of balancing solar energy with conventional power sources.

What problems arise from the duck curve in the energy grid?

Two main problems arise from the duck curve: 1) Traditional power plants are inefficient at ramping up quickly to meet the evening surge in demand. 2) Too much solar energy can overwhelm the grid, causing excess energy to be wasted.

How do lithium-ion batteries help address the challenges posed by solar energy?

Lithium-ion batteries store excess solar energy generated during the day and release it during peak demand times in the evening, effectively addressing the storage issue and making solar energy more reliable.

What advancements have been made in battery technology in recent years?

In recent years, lithium-ion batteries have become much cheaper and more efficient, making them a viable solution for storing solar energy. In addition, other storage technologies like flow batteries, pumped hydro, and gravity-based systems are being explored for longer-term storage.

What is the potential of solar energy by 2050?

Solar energy is projected to supply about 23% of the world’s electricity by 2050, with some experts predicting it could be much higher, potentially meeting a large portion of global electricity demand.

What are some alternative storage solutions for solar energy?

Alternative storage solutions include flow batteries, pumped hydro storage, and gravity-based systems, but these options are still either expensive or require specific geographical conditions, like lakes and hills.

How has the use of solar energy evolved in recent years?

Solar energy has evolved from being a niche, expensive technology to a mainstream, cost-effective solution. With advancements in technology and manufacturing, solar energy has become widely accessible, with countries like China leading production and countries like Germany creating supportive policies.