How to compare fossil fuels and solar

The world is growing fatigued from the effects of climate change, which are mostly created by man burning fossil fuels unchecked. Solar power is a much more responsible resource than fossil fuels. The ultimate way to compare solar energy to fossil fuels is by price, where solar has swiftly caught up with its non-renewable counterparts. But fossil fuels are almost gone and the time has come to assure lawmakers that drilling for fossil fuels in sensitive areas is a huge environmental risk the earth cannot afford.

Is solar power cheaper than fossil fuels?

There are several factors to process when analyzing the costs of energy sources. Government subsidies play a major role in beginning the growth potential for a new power source, which means that performing a comparison of the costs of solar energy vs. fossil fuels side-by-side is a challenging task. Europe is ahead of the United States in renewable energy. The nations of the Group of Twenty (G20) may have agreed to start phasing out fossil fuels in 2009 due to its pollution, but not every G20 member is following through on its commitment. According to Oil Change International’s report, while the G20 makes up more than 85% of global GDP, these top economies are spending $452 billion a year to subsidize fossil fuels. Who is the largest supporter of fossil fuel subsidies in the world? Unfortunately, the United States has continued to promote fossil fuels at a higher rate than any other nation in the world. Fossil fuel advocates are already preparing for the Trump Administration. In the near term, American energy will continue on its same course of massive fossil fuel subsidization.

 How energy subsidies play a large role

Comparing the cost of solar energy vs. fossil fuels, we have to consider the subsidies that are keeping costs relatively low. In the case of solar power, the Investment Tax Credit (ITC) currently includes 30 percent of any U.S. solar installation and will do so until 2021 for the residential sect r. The commercial sector will keep a permanent ten percent tax credit for solar. Renewable energy cynics and global warming deniers have scrutinized the ITC for being a costly taxpayer-funded stimulus. The reality is that this short-lived subsidy factors in only a modest fraction of the money that U.S. taxpayers spend each year to support fossil fuels. Without any subsidies, solar is likely the cheapest energy source in the world, as confirmed by record-low power purchase agreements in nations like the United Arab Emirates and Chile. Solar’s low-cost trend is likely to continue: unlike oil, gas, and coal, solar PV is a technology, not a fuel – meaning that its values will continue to drop every year as research continues and technology advances.

The genuine way to compare solar energy and fossil fuels without subsidies is to examine global energy costs. Global coal prices have historically averaged $0.06 cents per kilowatt-hour (kWh). Until the past ten years, no alternative energy resource could rival that price. Fossil fuel steam averages around $0.05 cents/kWh and small-scale natural gas can go as low as $0.03 cents/kWh. It’s no wonder that the world was so surprised in 2016 when a major commercial solar installation bid the lowest price for PV to date at $0.029 cents per kWh – effectively leveling the playing field between solar and fossil fuels’ cheapest offerings.

Now is a great time to install a solar energy system! Financial advantages make installing solar today a "no brainer."

For more information relating to going solar, don't forget to visit our solar blog section for more handy guides and articles.

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