Deutsche Bank has released a new study that claims cheaper solar energy is not too far away.
The study says that solar energy and fossil fuels will have the same price by 2016, according to Gizmodo. The U.S. government plays a large role in making this energy source more affordable with its 30 percent tax credit on solar energy systems.
Technology is also a factor in the declining cost of solar energy and making it a competitor for natural gas. The development of solar power serves as an example of scientists and engineers making a reality out of a good idea.
The cost of solar energy is expected to lower and compete with electricity prices in over 36 states even if the tax credit drops to 10 percent, Bloomberg reported. The study says that solar panels are becoming more mainstream, rather than a luxury for rich people, and the improvement of technology and more affordable financing will result in prices continuing to decline.
There are currently 10 states in the U.S. that are responsible for 90 percent of the country's solar energy production, and Deutsche Bank analyst Vishal Shah said electricity capacity growth in these states will rise as much as six-fold over the next three to four years.
The study follows the International Energy Agency's recent estimate that solar energy will be a top electricity source in the world by 2050, Bloomberg reported.
While the market for solar energy is currently small compared to that for coal and gas, claims from various organizations are showing that solar is on its way to becoming a top source of power.
