Solar energy achieves grid parity in Germany, Italy and Spain
- 26 March 2014
LONDON: The price of solar energy is now competitive with retail electricity prices in the commercial sectors of Germany Italy and Spain, a recent study by Eclareon analysts has found.
Drawing on data from sunny cities in Brazil, Chile, France, Germany, Italy, Mexico and Spain, researchers from the renewable energy consulting firm examined how competitive the photovoltaic solar energy industry is with conventional electricity cost.
The results indicate solar energy is becoming an increasingly cost efficient alternative, with the price of PV generation in the commercial sector decreasing in all cities which were studied.
Furthermore, European countries such as Germany, Italy and Spain have now achieved complete grid parity, ensuring that solar energy is now economically viable, as well as ethically preferable.
David Pérez, partner of Eclareon, commented: “In countries such as Italy and Germany, both at grid parity and with proper regulation, PV systems for self-consumption represent a viable, cost-effective, and sustainable power generation alternative”
However Eclareon caution that poor regulation in Spain’s solar industry could hinder further progress. The analysts believe that the fee for on-site self-consumption coupled with the lack of compensation for excess solar PV being fed into the grid could negatively impact the spread of the renewable energy alternative in Spain's commercial sector.
In addition, the analysts highlight that the high cost of solar PV installation in Latin American countries such as Brazil and Chile is inhibiting the alternative energy source from being fully competitive with grid electricity.
By Alana Ryan