How solar energy got so cheap | Summary and Q&A

TL;DR

Solar energy, once prohibitively expensive, is now nearly 90% cheaper than in 2009, making it the cheapest source of electricity in many places.

Key Insights

• 👨‍🔬 Initial investments by governments, such as the US, in solar research and development greatly improved the efficiency of solar cells.
• 😘 Japan's development of low-cost solar cells attracted interest from large companies and contributed to advancements in solar technology.
• 🤱 Germany's feed-in tariff program created a booming solar market, resulting in a surge in installations and a decrease in the cost of solar energy.
• 🥺 China's large-scale production of solar panels helped drive down prices globally and establish itself as the leading producer of solar electricity.
• ❓ The journey of solar energy showcases the importance of government intervention and incentivization in creating markets for renewable technologies.
• 🥵 Solar energy serves as a playbook for how to bring down costs and deploy other clean technologies like batteries, electric vehicles, and heat pumps.
• ✊ A combination of research, subsidies, and policies has turned solar energy into the cheapest source of clean power globally.

Transcript

The year is 1953. The US purchases this from Bell Labs... the first commercial silicon solar cell. But these first solar cells are not exactly efficient. If you were to put them on your roof and try to generate electricity it would cost you about $300,000 a month. Fast forward 70 years and that cost has come down. Way down. Solar energy is th... Read More

Questions & Answers

Q: How did the US government contribute to the development of solar energy?

In the 1970s, the US government allocated over $8 billion to solar research and development through Project Independence, doubling the efficiency of solar cells.

Q: What role did Japan play in the growth of solar energy?

Japan developed small yet powerful solar cells, attracting interest from large companies due to their low cost. This paved the way for further advancements in solar technology.

Q: How did Germany revolutionize the solar industry?

Germany introduced the feed-in tariff, a program that incentivized power companies to produce renewable energy by promising to buy it at double the market price for 20 years. This led to a significant increase in solar installations.

Q: How did China contribute to making solar energy cheaper?

China opened its first commercial solar manufacturer, Suntech, which sold solar panels at a large scale. This attracted competitors and inspired Chinese manufacturers to produce solar panels more affordably.

Q: How did the US government contribute to the development of solar energy?

In the 1970s, the US government allocated over $8 billion to solar research and development through Project Independence, doubling the efficiency of solar cells.

More Insights

• Initial investments by governments, such as the US, in solar research and development greatly improved the efficiency of solar cells.

• Japan's development of low-cost solar cells attracted interest from large companies and contributed to advancements in solar technology.

• Germany's feed-in tariff program created a booming solar market, resulting in a surge in installations and a decrease in the cost of solar energy.

• China's large-scale production of solar panels helped drive down prices globally and establish itself as the leading producer of solar electricity.

• The journey of solar energy showcases the importance of government intervention and incentivization in creating markets for renewable technologies.

• Solar energy serves as a playbook for how to bring down costs and deploy other clean technologies like batteries, electric vehicles, and heat pumps.

• A combination of research, subsidies, and policies has turned solar energy into the cheapest source of clean power globally.

• The success of solar energy demonstrates the potential for other renewable technologies to follow a similar trajectory with proper government support.

Summary & Key Takeaways

• In the 1970s, the US government allocated significant funding for solar research and development through Project Independence, which doubled the efficiency of solar cells.

• Japan also invested in solar technology, developing small yet powerful solar cells, attracting interest from large companies due to their low cost.

• Germany introduced a game-changing policy known as the feed-in tariff, offering incentives for power companies to produce renewable energy, leading to a four-fold increase in solar installations.

• China, inspired by Germany's success, opened its first commercial solar manufacturer and produced solar panels at an unprecedented scale, driving prices down globally.