They say $0.01/kWh is the target price, to be reached after some decades.
Don't get me wrong, I am excited about solar power but careful about the economics: the capital cost of solar right now is well over 1$/W (panels+inverters+installation/hookup) and even though it is falling nicely, the amortization schedule needs to be considered.
A rule-of-thumb figure is 1kWh of power per year from 1W nominal installed, so the capital cost will have to be amortized over 100 years to reach $.01/kWh. The installed price has to come down by a factor of 10 for this to work out.
Don't get me wrong, I am excited about solar power but careful about the economics: the capital cost of solar right now is well over 1$/W (panels+inverters+installation/hookup) and even though it is falling nicely, the amortization schedule needs to be considered. A rule-of-thumb figure is 1kWh of power per year from 1W nominal installed, so the capital cost will have to be amortized over 100 years to reach $.01/kWh. The installed price has to come down by a factor of 10 for this to work out.