When Will We Achieve Solar Grid Parity?


What is solar grid parity?

Solar power grid parity occurs when generating solar energy costs the same as electricity from the grid, measured by price per kilowatt hour.

The price of grid electricity, the available sunlight, and the cost of the photovoltaic system together determine the pace for grid parity.

The price of grid electricity and the hours of sunlight vary by region. Although the cost of PV systems will continue to fall as technology progresses, increased efficiency in the production process is not the only determinant of PV system price.

Government incentives and rebates also play a role in lowering the cost for consumers. But, as with the cost of grid-drawn electricity and hours of sunlight, these incentives vary by region.


Photo Credit: U.S. Department of Energy

Where will we achieve grid parity soonest?

Grid parity will be achieved soonest in places with most sunlight and relatively high priced electricity, such as Hawaii and California, as well as regions where PV systems are well-subsidized. But while some experts estimate that grid parity will be achieved in the US by 2020, solar energy grid parity will occur at different times in different areas.

Although it is unclear when complete grid parity will occur, you can still estimate the payback period for PV systems. Plus, aside from savings, there are other advantages of solar energy for your home.

Recent Posts