Surprise! A New Study out of Germany reported that policy makers and energy planners are underestimating the cost potential of solar. Agora Energiewende predicts that solar PV will be the cheapest form of electricity within the next 10 years and that the end to solar cost reductions are nowhere in sight for the future.
The price of solar has come down more than 80 percent in the last few years and Agora Energiewende cites the current and future panel efficiency as another reason why solar will be more affordable. Panel technology is being refined so much so that fewer panels are needed to produce equivalent amounts of power. This means that very soon we will need less space, materials, and installation costs will also come down significantly.
It is expected that system costs will fall another 2/3 in the future and that could also cut the cost of financing all over the world. This of course does not take into consideration any future breakthroughs that could also lower costs and even more. In fact Solar is expected to be the biggest single source of energy by 2050, which is not something companies like Exxon or even policy makers would have us believe.