How solar energy got so cheap

Summary

The video explores the rapid evolution of solar energy from an expensive niche technology in 1953 to the cheapest energy source today. It highlights key milestones, such as Japan’s innovations, Germany’s pivotal feed-in tariffs, and China’s large-scale production. Governments across the world created policies and subsidies to develop solar technology, driving down costs significantly over time. This success provides a blueprint for making other clean technologies, like electric vehicles and batteries, more affordable and scalable. The video emphasizes the importance of political will and investment in shaping the future of renewable energy.

Takeaways

• 💡 The first commercial silicon solar cell was created in 1953, but early models were inefficient and extremely costly.
• 📉 Over the last 70 years, the cost of solar energy has plummeted, becoming 90% cheaper than it was in 2009.
• 🌞 Solar energy is now often cheaper than generating electricity with coal, natural gas, or nuclear power.
• ⚡ The 1970s oil crisis spurred significant investment in alternative energy research, particularly solar energy.
• 🇯🇵 Japan developed smaller, more efficient solar cells in the 70s and 80s, sparking interest from large companies in solar technology.
• 🇩🇪 Germany’s feed-in tariff policy, starting in 2000, was a key turning point, encouraging large-scale deployment of solar power.
• 🏭 As solar panels were produced in larger quantities, the cost of generating electricity with solar continued to drop.
• 🇨🇳 China became the world’s largest producer of solar panels and solar electricity, driven by domestic subsidies and global demand.
• 🏦 The U.S. Energy Policy Act of 2005 introduced investment tax credits, greatly accelerating solar adoption in the U.S.
• 🔋 Solar energy’s success has become a model for driving down costs in other technologies, like electric vehicles and batteries.

Q & A

What was the first significant step in the commercialization of solar energy?

The first significant step was the development of the first commercial silicon solar cell by Bell Labs in 1953, but these early solar cells were prohibitively expensive and inefficient.

How expensive were the first solar cells if they were used to generate electricity for homes?

If you were to use the first solar cells on your roof, generating electricity would cost around $300,000 per month, making them far too expensive for widespread use.

How much has the cost of solar energy dropped since 2009?

Since 2009, the cost of solar energy has dropped by nearly 90%, making it one of the cheapest sources of electricity.

What spurred the initial push for research and development of alternative energy sources like solar?

The 1970s oil crisis spurred a significant push for alternative energy research, as the US faced an energy crisis and sought ways to reduce reliance on fossil fuels.

What was Project Independence, and how did it impact solar energy development?

Project Independence was a US federal government initiative during the 1970s that allocated more than $8 billion for solar research and development, which significantly improved the efficiency of solar cells.

How did Paul Maycock from Texas Instruments influence the development of solar technology?

Paul Maycock, who worked on calculators at Texas Instruments, recognized that building more solar cells would reduce costs, just as it had done with calculators. His hypothesis laid the foundation for future solar development.

Which countries took over solar development after the US reduced its investment in solar energy?

Japan and Germany took the lead in solar development after the US scaled back. Japan focused on small solar cells for consumer electronics, while Germany implemented large-scale solar deployment with its feed-in tariff program.

What was the German feed-in tariff, and why was it significant for solar energy?

The German feed-in tariff was a program that promised to pay power companies double the market price for renewable energy for 20 years, incentivizing companies to build solar farms and significantly scaling up solar energy production.

How did China become a dominant player in the solar energy market?

China became a leader in solar energy after Deng Xiaoping's educational exchange program in the 1980s. A Chinese student who studied solar cell technology in Australia returned to China and founded Suntech in 2002, which later became a major player due to high demand from Germany. Chinese manufacturers eventually scaled production and drove down costs.

What role did government subsidies play in reducing the cost of solar energy?

Government subsidies in countries like Germany, Japan, and China played a crucial role in reducing solar energy costs by creating markets for solar technology, incentivizing production at scale, and driving innovation in the industry.