Our team at Hum Energy has taken a deep dive into Solar Power.
The Economist’s latest report marks the beginning of what it calls the “Dawn of the Solar Age,” highlighting the rapid ascent of solar power as nuclear energy stagnates. By the mid-2030s, solar power is projected to become the world’s leading source of electricity, and by the 2040s, it could surpass fossil fuels like coal and oil to become the dominant energy source globally.
Experts were caught off guard by this rapid growth. The International Energy Agency (IEA) has consistently underestimated solar expansion since 2009, with actual installations exceeding predictions by more than three times. Even Greenpeace’s previously optimistic forecasts fell short of the remarkable growth observed. The Economist anticipates that the next tenfold increase will occur even faster than the time it takes to build new nuclear reactors. In 2004, it took a full year to install 1 gigawatt of solar capacity (enough to power a small city). Today, this milestone is reached every day.
The falling cost of solar cells is a key factor driving this expansion. As production increases, costs decrease, which boosts demand and further reduces prices. Unlike traditional energy sources, which become more expensive over time, solar cells benefit from their primary material, sand, which is plentiful. China and India are at the forefront of manufacturing and installing solar cells, contributing significantly to this growth.
In Australia, solar power is already impacting electricity prices. States like South Australia and Tasmania, which rely heavily on renewable energy, enjoy some of the lowest electricity prices in the country, just behind Victoria, which benefits from its reliance on brown coal. The Economist emphasizes that low prices, rather than environmental concerns, are driving the adoption of solar energy. As solar power becomes increasingly affordable and widespread, it is expected to be used in innovative ways, driven by the forces of technological progress and market dynamics.
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