The cost of installing solar energy systems of every type has seen double digit decreases in cost since 2008. This reduction is astonishing because it means that solar becomes competitive with coal (which we’ve already seen) and that arguments against using solar get less powerful every year. There’s also a compounding effect too. The more solar gets supported by institutions that more widespread the technology becomes and the spin of effects of that technology will spur more renewable production. The same is true for other forms of clean energy.
This makes it much clearer that the trends are not â€œflattening.â€
Again, this is no surprise. The International Energy Agency released a whole report on this subject back in 2000, titled, â€œExperience Curves for Energy Technology Policy.â€ In it, the IEA explained that accelerated clean energy deployment policies were creating economies of scale and bringing technologies rapidly down the learning curve. As long as those policies continue, the price drops would continue.
And they did continueâ€Šâ€”â€Šwith especially large investments by Germany and China. The result is that over the past four decades, for every doubling in scale of the solar industry, the price of solar modules has dropped roughly 26 percent.