Some countries reach the “golden goal” of grid parity for solar electricity

According to Bloomberg several countries that have high electricity prices have already reached the “golden goal” of grid parity. This means putting solar modules on the roof to replace electricity purchased from the grid is a good investment for consumers. This includes Germany, Denmark, Portugal, Spain and Australia. Brazil is also above the 6% level, but consumers may require higher returns on investment in a developing economy.

Japan, France, Greece and Turkey are expected to be there by 2015, and by 2020 even the US average price will high enough to justify investment, even without the 30 percent investment tax credit subsidy.

An interactive version of this chart can be found on the Bloomberg site.

My comment on the UK situation: The UK having relatively lower electricity costs than other countries is likely to be similar to the US, but there are wide regional variations in the cost of electricity from the grid and as it is a very competitive market variations depending on usage so some consumers might reach the golden goal earlier than others. In addition, the UK government is also being fairly rigorous in legislating for carbon emission reductions that could also have an impact upon the time when grid parity is reached.

Localisation is also another interesting factor. Location householders could club together to get good deals on Solar PV installation as well as adopt collective bargaining techniques to buy electricity from the grid at a lower price in the same way as a number of communities are clubbing together to buy cheaper oil. The development of Community Energy Companies is also yet another factor.

 

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