The typical cost factors for solar power include the costs of the modules, the frame to hold them, wiring, inverters, labour cost, any land that might be required, the grid connection, maintenance and the solar insolation that location will receive. Adjusting for inflation, it cost $96 per watt for a solar module in the mid-1970s. Process improvements and a very large boost in production have brought that figure down to 68 cents per watt in February 2016, according to data from Bloomberg New Energy Finance. Palo Alto California signed a wholesale purchase agreement in 2016 that secured solar power for 3.7 cents per kilowatt-hour. And in sunny Dubai large-scale solar generated electricity sold in 2016 for just 2.99 cents per kilowatt-hour – "competitive with any form of fossil-based electricity — and cheaper than most."
Al Gore says the reason is innovation. “The cost-reduction curve that came to technologies like computers, smartphones and flat-panel televisions has come to solar energy, wind energy and battery storage,” he says. “I remember being startled decades ago when people first started to explain to me that the cost of computing was being cut in half every 18 to 24 months. And now this dramatic economic change has begun to utterly transform the electricity markets.”
Commercial concentrated solar power plants were first developed in the 1980s. As the cost of solar electricity has fallen, the number of grid-connected solar PV systems has grown into the millions and utility-scale solar power stations with hundreds of megawatts are being built. Solar PV is rapidly becoming an inexpensive, low-carbon technology to harness renewable energy from the Sun.
If you regularly find your lawn furniture blown over, or have to collect it from the neighbour’s yard, your house needs to be repainted every year or two because it constantly gets sand-blasted, and where the trees have funny shapes (and not because your power company has been doing the pruning), that is when you know you live in a windy place where a wind turbine is likely to make economic sense.
“New Wind May Be Cheaper than Old, Reliable Coal” • Wind farms have cost less to build and operate than coal-fired power plants for some time. The trend of lower costs for renewables has crossed a threshold: it is sometimes cheaper to build a brand new wind facility than keep an old coal plant burning, according to Lazard Ltd. [Casper Star-Tribune Online]
The tables above are for HAWTs, the regular horizontal “wind mill” type we are all familiar with. For VAWTs the tables can be used as well, but you have to convert their dimensions. Calculate the frontal area (swept area) of the VAWT by multiplying height and width, or for a curved egg-beater approximate the area. Now convert the surface area to a diameter, as if it were a circle: Diameter = √(4 • Area / Pi). That will give you a diameter for the table. Look up the energy production for that diameter and your average annual wind speed and do the following:
Many industrialized nations have installed significant solar power capacity into their grids to supplement or provide an alternative to conventional energy sources while an increasing number of less developed nations have turned to solar to reduce dependence on expensive imported fuels (see solar power by country). Long distance transmission allows remote renewable energy resources to displace fossil fuel consumption. Solar power plants use one of two technologies: