A recent letter to the editor cited the cost of solar power vs. traditional electricity supplies, specifically, fossil fuels. Additionally, the letter expressed doubt whether solar power could ever be competitive with fossil fuel-based electricity. Unfortunately, the article cited out-of-date information about the cost of solar power and an unrealistic cost of fossil fuel-generated electricity.
A more recent and optimistic perspective appearing on the same blog cited by the author of the letter, indicates that the promise of grid parity is achievable for solar power, stating that costs have fallen dramatically and are positioned to drop further (http://greenecon.net/falling-panel-prices-could-bring-solar-closer-to-grid-parity/energy_economics.html#more-76). Moreover, published reports indicate a cost of about $.21/kWh for solar power in 2009. Another report this summer indicated that grid parity for solar ($.10/kWh) may be attainable as early as 2015. That’s progress!
The cost of fossil fuel-generated electricity was reflected as $.03/kWh. According to the Energy Information Agency (EIA), the average residential cost in the U.S. was about $0.12/kWh (May 2010). Even at this level, the true cost of fossil fuel-generated electricity is understated. According to the International Energy Agency, during 2008 the fossil fuel industries received about $557 billion compared to about $46 billion for alternative energy technologies.
Closer to home, a report by the Environmental Law Institute indicates that from 2002 to 2008 the fossil fuel industry received over $72 billion in subsidies vs. $29 billion for renewable energy (50 percent of which is directed to ethanol). Insidiously, the oil industry in particular continues to be one of the most subsidized industries in the U.S., despite record profits. A National Academy of Sciences study, “Hidden Costs of Energy—Unpriced Consequences of Energy Production and Use” identified $120 billion in costs. The report noted that this amount does not account for all potential damages (e.g., climate change), with the true costs being significantly higher.
While I too grow wearier by the day of the crony capitalism that exists in our country, when considering all of these factors, one must consider whether we should continue subsidizing fossil fuels or redirect this investment to more promising energy technologies.
Stephen Mirarchi
Sherry Road
