Renewable energy prices are getting lower and lower, thanks to the construction of more efficient plants and progressively lower construction costs. This is also occurring because renewables are becoming more widespread, which triggers a virtuous circle that helps the further development of the whole sector. In technical language, it’s called economy of scale: the more production increases, the more the price decreases proportionally. This is also why solar energy – the one that’s spreading most rapidly – is set to become the main source of electricity production in much of the world within 30 years. In particular, technological and digital development have made photovoltaics a useful and affordable resource, both for industries and in homes. Just take a look at the numbers: the price of photovoltaic solar energy fell from $359 (about €330) per MWh in 2009 to $40 (about €36) per MWh in 2019: an almost 90% drop in just 10 years. As the International Renewable Energy Agency (IRENA)’s 2021 Renewable Power Generation Costs report explains, prices of other green sources are also steadily declining. In the period between 2010 and 2021, the average cost of new photovoltaic systems fell by 88%, onshore wind by 68%, and offshore wind by 60%. Renewables are cheaper than fossil fuels As of 2021, most renewable energy obtained from newly installed systems costs less than even the cheapest coal-fired power plants – and this is true in all industrialized countries, at least. Renewables are, and will be, the cheapest form of energy; in fact, they already have competitive, advantageous prices compared to fossil alternatives, which are also very polluting. Today, solar energy and wind power together have already exceeded 10% of the world's electricity production. Considering that, at the time of the Paris Agreement in 2015, the percentage was about 4.6%, this achievement is remarkable, and according to experts it shows that the sector is in great development and has excellent potential. For it to be possible to move away from fossil fuels for good, however, there needs to be simultaneous growth in all renewable sources: solar, photovoltaic, wind, hydroelectric and geothermal. It is a combination of all of them, in fact, that will help us achieve our sustainability goals. The reasons for the success of solar energy The sun is a resource that’s practically inexhaustible, clean and perfect for meeting a variety of energy needs. The possibility of installing photovoltaic panels almost anywhere makes solar energy an excellent option for domestic self-consumption, too. In addition to the roofs of homes and all buildings, photovoltaic systems can also be installed on land used for farming or raising livestock, as is the case with agrivoltaics. In addition, the materials that are used to make the systems now cost less, because the technologies for energy production have evolved very quickly in recent years. All this makes it possible to decrease carbon dioxide emissions (CO2 ), as the energy transition goals specify. Plus, installing photovoltaic panels even for self-consumption of energy saves on utility bills and benefits from some incentives. This has led to the birth of Renewable Energy Communities (RECs): associations of people who produce and share renewable energy, contributing to the green transition. With a view to promoting the circular economy, a further decisive point is the management of the "end of life" of plants, which is their dismantling when they begin to deteriorate. Here, too, there’s good news: the materials from which solar panels are made are perfectly in line with the 5 Rs model: reduce, reuse, recycle, regenerate and rot. To make the best use of available resources, agrisolar and agrivoltaic systems are finding more and more space in recent years. In practice, the same land is used simultaneously for agricultural activities and energy production, so that both activities are optimized.
Renewable energy prices are getting lower and lower, thanks to the construction of more efficient plants and progressively lower construction costs. This is also occurring because renewables are becoming more widespread, which triggers a virtuous circle that helps the further development of the whole sector. In technical language, it’s called economy of scale: the more production increases, the more the price decreases proportionally. This is also why solar energy – the one that’s spreading most rapidly – is set to become the main source of electricity production in much of the world within 30 years. In particular, technological and digital development have made photovoltaics a useful and affordable resource, both for industries and in homes. Just take a look at the numbers: the price of photovoltaic solar energy fell from $359 (about €330) per MWh in 2009 to $40 (about €36) per MWh in 2019: an almost 90% drop in just 10 years. As the International Renewable Energy Agency (IRENA)’s 2021 Renewable Power Generation Costs report explains, prices of other green sources are also steadily declining. In the period between 2010 and 2021, the average cost of new photovoltaic systems fell by 88%, onshore wind by 68%, and offshore wind by 60%. Renewables are cheaper than fossil fuels As of 2021, most renewable energy obtained from newly installed systems costs less than even the cheapest coal-fired power plants – and this is true in all industrialized countries, at least. Renewables are, and will be, the cheapest form of energy; in fact, they already have competitive, advantageous prices compared to fossil alternatives, which are also very polluting. Today, solar energy and wind power together have already exceeded 10% of the world's electricity production. Considering that, at the time of the Paris Agreement in 2015, the percentage was about 4.6%, this achievement is remarkable, and according to experts it shows that the sector is in great development and has excellent potential. For it to be possible to move away from fossil fuels for good, however, there needs to be simultaneous growth in all renewable sources: solar, photovoltaic, wind, hydroelectric and geothermal. It is a combination of all of them, in fact, that will help us achieve our sustainability goals. The reasons for the success of solar energy The sun is a resource that’s practically inexhaustible, clean and perfect for meeting a variety of energy needs. The possibility of installing photovoltaic panels almost anywhere makes solar energy an excellent option for domestic self-consumption, too. In addition to the roofs of homes and all buildings, photovoltaic systems can also be installed on land used for farming or raising livestock, as is the case with agrivoltaics. In addition, the materials that are used to make the systems now cost less, because the technologies for energy production have evolved very quickly in recent years. All this makes it possible to decrease carbon dioxide emissions (CO2 ), as the energy transition goals specify. Plus, installing photovoltaic panels even for self-consumption of energy saves on utility bills and benefits from some incentives. This has led to the birth of Renewable Energy Communities (RECs): associations of people who produce and share renewable energy, contributing to the green transition. With a view to promoting the circular economy, a further decisive point is the management of the "end of life" of plants, which is their dismantling when they begin to deteriorate. Here, too, there’s good news: the materials from which solar panels are made are perfectly in line with the 5 Rs model: reduce, reuse, recycle, regenerate and rot. To make the best use of available resources, agrisolar and agrivoltaic systems are finding more and more space in recent years. In practice, the same land is used simultaneously for agricultural activities and energy production, so that both activities are optimized.
