16 May 2012: A new paper titled “Reconsidering the Economics of Photovoltaic Power” shows that the commonly held view that solar photovoltaic (PV) is not competitive with conventional electricity generation is no longer true – solar power is now competitive with retail power prices in may countries.

The paper, co-authored by 10 experts from international organizations, industry, finance and academia, illustrates that the average price of PV modules have fallen by over 75% in the past three years. The paper concludes that: common metrics for estimating and comparing costs of energy, including the well-known “grid parity” concept, are misleading when applied to PV technology; recent price reductions have major policy and investment implications globally; decision-makers have been slow to pick up on and understand these implications; and the changes in PV pricing are expected to be sustainable over time. [UN-Energy Summary][Bloomberg New Energy Finance Press Release] [Publication: Reconsidering the Economics of Photovoltaic Power]