More price competition from solar farms in some part of the US will be coming to natural gas-fired power plants. The change in the market is being experienced thanks to cheap solar battery costs that make it possible for solar system owners to have electricity even after the sun sets.
As the solar projects that incorporate storage become cheaper to build per MWh in parts of the US Southwest than a gas-fired generation, there is a lot of people could achieve. Solar is speculated to replace a considerable portion of coal-fired power in the region, about 7 gigawatts over the next decade. It is likely the trend will be repeated elsewhere in the country or globally.
Utilities that purchase electricity from solar farms still depend on gas-fired generators once the sun goes down. This, however, is set to change, by the making of solar more reliable through the increasing affordability of batteries thanks to a federal incentive. Solar panel systems in the long term is a threat to gas suppliers who will experience a decline in the demand from the utilities. A 100-megawatt solar farm in Arizona ready to go in service in 2021 which will be coupled with a 25-megawatt storage system with four hours of capacity will be able to provide power for a $36 MWh. According to BNEF, that’s below $47 price of power from a new combined-cycle gas plant.
A number of reasons make solar panels and solar batteries to be cheaper than gas in some parts of the US. Since their introduction to the energy market, prices for solar panels and solar batteries have dropped exponentially. For instance, solar infrastructure costs have fallen 70% from 2006.
The more affordable solar panel price has also made many homeowners experience huge savings in electricity bills due to net metering. Hefty government subsidies paid for by tax dollars also contributes to the low solar panel price and solar batteries prices. This has led to the growth of the solar energy sector by 68%. Right now solar power is regarded as the most flexible and cleanest source of energy in the US. People are finding it cheaper than gas in many parts of the country and is seen to be a reliable way of producing inexpensive electricity. Certainly, the solar battery makes it reliable.
These cheap solar panels and solar batteries have made entire neighbourhoods in some states incorporate solar. New ones are being built with solar from the ground up. The cost of solar panels with battery systems has dropped so much that it has become a possible effective alternative to electricity from the grid.
In the country, solar power is the ever first technology that is challenging to a dominant utility model that is electricity from gas. Recent studies by big researchers and the government have shown that homeowners with solar energy schemes reduce the overall expenses of the grid. Households save a lot every year.