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Is solar cheaper than coal?
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First Solar solar panels
According to Mark Bachman, an equity analyst at Pacific Crest, a 12.6 MW system installed by First Solar (NASDAQ:FSLR) has demonstrated that it can produce electricity at a cost below that of conventional power in the U.S. If this is true, First Solar just became the biggest game changer in the power generation game.
The 12.6 MW system, located in the Nevada desert, cost $0.075 per kWh to install. And that's without subsidies. Conventional power fed to that grid is $0.09 per kWh.
Most industry experts agree that by 2012, grid parity in many parts of the country will be achieved – thanks primarily to new state and federal support, advancements in efficiency, and decreases in operational costs.
Bottom line: This industry continues to move at light speed. Earlier this year First Solar all but guaranteed electricity at $0.08 to $0.10 per kWh. Not only did they reach that milestone – they passed it. And my friends, this is just the beginning.
As the technological advancements continue to pile up, and the cost for fossil fuel-based power continues to rise, the long-term outlook remains strong. Granted, overall market conditions will continue to dictate the success of solar stocks in the short-term. But as I always say, recessions don't last forever. Fossil fuel depletion does.
For more on solar investing, visit Green Chip Stocks.
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