Solar Cheaper Than Coal By 2021

Solar Cheaper Than Coal By 2021


– By 2021, solar is gonna
be cheaper than coal, a new report from Bloomberg
New Energy Finance suggests. The new report shows
that the price of solar is dropping rapidly, much faster than originally anticipated. The lead author, Seb Henbest, said, “Costs of new energy
technologies are falling “in a way that is more a
matter of when than if.” If their report is correct,
then we could see a decline in global CO2 levels as early
as 2026, which is much sooner than the International
Energy Agency forecast. China and India are the biggest markets for these new solar farms
and account for $4 trillion of investment, which is about
39% of the overall industry. Now, these two countries
are still spinning up coal plants really fast, but I
think once the price of solar gets below where it is for
the other types of energy, we’re gonna see a big
shift really quickly. In fact, China aims to spend
at least 360 billion with a B on renewable energy by 2020
to fight climate change. This is of course to help them deal with the severe pollution in their cities. Now, China is also
incentivizing their consumers, their citizens, to buy electric vehicles, and in fact last year they had over 350,000 electric vehicles sold, which is far and away the most out of any country in the world. In one way, you could say
that they’re the world leaders in shifting us into more
renewable forms of energy and forms of transportation
such as electric vehicles. In the US, besides Donald Trump saying, “We’re gonna bring back the coal industry, “save the coal industry,” we’re gonna see prices for
solar continue to drop. The report predicts that in the US, solar costs will drop by 67%
in 2040 and 63% in Canada. That’s huge but still
doesn’t hold a candle to the 85% price drop predicted in Japan. In fact, they’re looking at
a 70% price drop by 2022. That’s only five years from now. Now, I have to pause here
for a second and talk a little bit about why I
focus on the price so much. You see, in the US, we’ve
politicized the argument over climate change, whereas
most of the rest of the world really doesn’t see it
as an argument anymore, as more a fact and something
that we need to act upon. That’s why literally
every country in the world signed onto the Paris Accord. So, when you have something
that is objectively cheaper and better in every way, no one is gonna stop this from happening. No one’s gonna stand in the way and say, “Let’s pay more for the same thing “that we could get cheaper and
better and easier over here.” It just doesn’t work that way. In fact, the reason oil
and things like plastic have been with us for
so many centuries now is because of how cheap
and efficient they are. If we found a better
way to do this earlier, then we would’ve already made
the switch, but we haven’t, and until we started to realize the impact that this industry is
having on our environment, we really didn’t open
our eyes to even looking because we didn’t realize
why we would want that. Don’t think for a second, though, that this will spell doom and gloom for big oil or Opec or any of those folks. Companies like BP are making
their first investment into renewables in half a decade. Even Opec’s top producer, Saudi Arabia, a country synonymous with big oil, is planning to develop 30 solar and wind projects over the next 10 years. This is part of the
kingdom’s $50 billion program to boost power generation
and reduce oil consumption. Their goal is to produce
10% of their power from renewables by 2023. That’s only six years from now. In the EU, things are
headed this way, also and the report from Bloomberg
New Energy Finance projects that by 2040, the desire or demand for oil will drop by about 87%
due to the increased cost put in place by the laws
that they’ve enacted to help fight climate change. So all together, we’re
looking at zero emission tech like Teslas, other electric
vehicles, and home batteries skyrocketing as the source
of energy for those products becomes more renewable, as well, and all of this adds up to
a cleaner, brighter future for us and for our children
and our children’s children, and this is where today’s
sponsor comes into play. In 2016, 39% of new generation
capacity brought online was solar, which is leading to the boom in residential and
commercial solar projects. This is why they’re
offering you as an investor up to eight and a half percent annually to help fund the transition to solar for small and medium sized businesses. You see, banks don’t understand
how to finance these things and this is where Wunder Capital comes in. They help small and
medium sized businesses convert their business over
to solar by providing them the financial tools necessary to do so. As an investor, it helps you
because you get to diversify your portfolio, earn up to eight
and a half percent returns, and fight climate change
all at the same time. In 2017, Wunder Capital is looking to five X the size of their fund, meaning there’s a lot of opportunity for you to get involved. They take no fees from you
and you can get started with as little as $1,000 today. So if you wanna support
small businesses in the US, earn up to eight and a
half percent annually, and fight climate change
all at the same time, you can learn more at
teslanomics.co/wunder, and thanks for watching this episode and I’ll see you back here next time.

73 thoughts on “Solar Cheaper Than Coal By 2021

  1. Yes but when will solar with storage be cheaper the coal? It only helps in a massive scale when storage is cheap, along with Solar.

  2. Thanks, Ben,
    We are going gang busters in Aus, house hold uptake @ 100mw per month now and breaking records. $3999 AUD for 5.5 kw system, $ 6999 AUD for 10.6 kw system. Your's will take off when you find out why you are being ripped off to such a degree.

  3. As people said here, Renewables become fully viable once you can deploy a massive and cheap battery storage facility alongside the renewables, with renewables you have no control of production of electricity while with fossils you simply burn more/less

  4. Not fact friend… We will never see a decrease in carbon in the atmosphere in our, our kids, our grandkids, or their kids lifetimes. all the carbon up there will be there centuries from now. The levels don't fall that fast. You can't add less only more. That's how this mess works from a scientific standpoint. Sorry.

  5. There are lots of articles saying that solar is already cheaper then new coal in many parts of the world. No need to wait to 2021

  6. As demand for oil and coal drops, prices will go down as well. Which means energy companies will consider going back to using oil and coal.

  7. Their is a new company that is designing a solar panel with 90% less silicon, but the same amount of energy output. If they are able to mass produce they could potentially decrease costs by 20-60%.

  8. Don't forget the oil industry is heavily subsidised. Around $2-$3 trillion. The main reason it's so cheap. Can't see that going on forever.

  9. Solar panels without huge batteries included in the cost can't be compared to coal. It's just 2 different things. When you can say that solar + huge batteries are cheaper than coal, then we can say "Solar cheaper than coal" without actually lying.

  10. Thanks for all your remarks! For those worried about grid reliability when using renewables, a new draft report from the DOE shows that "The power system is more reliable today due to better planning, market discipline, and better operating rules and standards,"

    If you're unfamiliar with how the grid works it's basically the art of making the system bulletproof. So don't worry about the cost of battery storage in order for renewables to be viable. Although the cost of batteries are dropping rapidly as well due to the Tesla gigafactory expansion and Lithium production increases. Rest easy friends and enjoy the bountiful energy provided by your favorite fusion reactor in the sky.

    See you back here Monday!

    source: https://www.bloomberg.com/news/articles/2017-07-14/renewable-energy-not-a-threat-to-grid-draft-of-u-s-study-finds

  11. Ben, be careful about pushing an investment company without disclosing your financial relationship with them. Check with an attorney who specializes in security law. Thanks for your updates

  12. I wouldn't be surprised to see fuel producers and utilities that don't want to invest in solar to use politicians to stall its advance.

  13. The reason other nations signed on the Paris Accord is because they got funds from the USA and didn't have to pay a dime for not meeting the standards. Don't be naive! If the other nations were concerned for climate change, they'd pay their penalties instead of the USA and only the USA paying a fine. The USA isn't even the greatest offender – it's China, India and Russia and they didn't pay dime in penalties. Trump did the right thing by pulling out of the one-sided agreement! If you disagree with me, please show a graph on who paid what and the Paris Accord's own numbers as to reduction in global temperature if all the standards were met. Before you villainize me, remember I have an EV and like clean air. But agreeing to a plan that has no effect a century from now and makes the #4 offender pay while #1, #2 and #3 get off scott free makes no sense.

  14. Ben, nicely done with this video. Since I can see other people from outside your normal viewer base to see this, I think it would be helpful to add a note that the roofs are solar roofs 4:16

  15. Hey Ben, it must be 2021 now then. currently generation/storage costs for solar are less than 5c per kWh in the Middle East.

    Also in Australia which only has a population of around 22-24 million people and produces coal the annual health cost from coal is $2.8b which is born by our national health system. This is therefore effectively a taxpayer subsidy that is not being properly accounted for. Add that to the other subsidies that the coal industry receives and coal ends up being much more expensive than the alternatives

  16. Great video, Ben. With your analytic background, would be interested to see you go over the EIA data of electricity generation by US state (I did a video on it, but I"m not
    an analyist).
    I do think there needs to be clarification though about the raw cost of PRODUCING electricity by solar and INCORPORATING it reliably (secondary effects of climate change are always included in its cost estimates, so I think it's fair to apply secondary costs to renewables). Batteries of course can stabilize overnight electric demand or peak usage, but I have yet to see a viable design for states like Michigan where there can be very diminished sun for a month…which is a too long for battery storage. Duplicate fossil fuel plants can be used (like for Germany during their eclipse) but then that's a cost to be factored in.
    One reason I like Musk's approach is that he acknowledges solar can be incorporated to the current grid to about 20-30% without disruption, at least in the southwest, but that other places really can't go truly 100% solar or wind.

  17. The stone age did not end becouse we ran out of stone. We found better materials to make tools out of. Looking forward to the end of the Oil age.

  18. US will subsidize fossil fuel even more. Oil is the biggest industry in the world. They have the best lobbyist second to none!

  19. You neglect to consider is that MANY of these countries have signed onto the Paris Agreement because of the money that they will be GIVEN, not necessarily because of benefiting the rest of the world. Just to be clear am for cleaner energy.
    I also think that the coal industry should have been given the opportunity, or possibly incentivized, to transition over to cleaner forms of energy much as the oil industry is being allowed to do.

  20. so the US is subsidizing oil and coal where every other country is dumping every penny they can spare into solar and batteries
    I think it might be wize if the US makes learning to speak fluent
    Mandarin in our schools a priority

  21. Hi Ben. We tried to reach you with regards to our Tesla Product that will release in a few weeks. I was wondering if you got the mail, or if we have the wrong mail ? It seems to not work, is there an alternative mail we could try ?

    BR – William.

  22. Be clear that China are going green not to solve climate change, simply to control pollution, pollution is a huge problem in their big cities. Pollution should be the lead topic when talking about green energy and EV's. Less than half of the US population believe humans cause climate change. Almost everyone understands that smoke and exhaust fumes cause smog and pollution.

    The actions to reduce pollution are very similar to those to control climate change.

    Simply advocate for reduced pollution, few will argue against cleaner air.

  23. There are reports it's already cheaper
    https://cleantechnica.com/2017/05/28/wind-solar-already-cheaper-coal-gas-lets-get/

  24. I am not sold on the religion of climate change because there are major swing in weather for the last couple thousand years. Look it up. But I am all for clean air and American independence from the Middle East. But American, buy Tesla!

  25. NEWS FLASH: Bloomberg is lousy news reporting. Solar is ALREADY cheaper than coal. An executive for a Texas coal / electric generation plant said they have ALREADY scrapped plans for building any new coal / electric plants due to the price of solar.

  26. It would be cool if we could actually use wunder capital but you CANT unless you are a MILLIONAIRE.

    The fine print of this is the fact that you need to be an accredited investor(millionaire) to participate.

  27. There are other costs with coal. It kills miners with lung diseases. It kills the public down wind of coal plants due to radioactive plumes and particulates. It also kills people who are in contact with coal dust. The latter threat exists for centuries.

  28. There was a project here in the middle east and found that solar is already cheaper. Oil companies should invest in solar PV and battery technology if they want to stay relevant in a decade.

  29. We spent way too much for solar to be cheaper than coal. An insane amount that should of been used to help other things.

  30. In Australia we have the same problem with our backward thinking government.
    We also have the most solar energy in the world, we just need the will from government to harvest it.

  31. Hey Ben. Still loving the videos. Seems you've figured out how to "outline" yourself in your thumbnail. I'm struggling to figure out how to do this in Final Cut Pro. Are you using adobe?

  32. Plastics are kinda new. Plastics are with us since they were invented on the 1st half of the 20th century.

  33. Large-scale solar already beats coal in certain regions.

    Prospective solar plants bid lower prices than new coal plants in Chile in their auctions for government supply contracts over a year ago. To clarify, those solar prices were bid without counting on any subsidy during their operational lifetime.

    Here is a report covering the result:

    http://reneweconomy.com.au/new-low-solar-price-record-set-in-chile-2-91%C2%A2-per-kwh-64338/

  34. If even Saudi Arabia is moving to solar then the time for solar has come.
    Trump is right, there is no need for a Paris accord anymore. The market has been started/forced/directed (take your pick) decades ago, now it can stand on its own as price will outperform any other force. I am no believer of manmade climate change (subtle change from global warming) but a big supporter of anything that makes live more sustainable and pollution free. Pollution is the real killer and it is here now, it should be stopped as quickly as possible. If it needs a 'global warming' scare. So be it.
    My fear is that government will change from subsidizing solar to taxing it!
    They always do that, the urge to get more money will always increase and if tax from oil is no longer available something else needs to replace it!
    As an example: First they promote home ownership, then tax it.

  35. Thanks, but why is deforestation being ignored? Deforestation is possibly the largest contributer to climate change.

  36. oil and plastic haven't been around for "so many centuries"
    unless you mean fossil fuels, since coal has been used for centuries
    certainly oil is a foundation for the modern world, but it's only been in use for just over one century

  37. Last year the cost of solar was the cheapest form of energy, followed by offshore wind and then onshore wind. Bloomberg is not a reliable source. Battery storage needs to be an urgent matter, and only Tesla and North Volt are the only serious investors. Daimler will not receive my full support until they actually build their factory. I have been pleading with Renault/Nissan to invest in battery production through LG Chem. We need 20 factories in Europe and the same in North America. If there is an improvement in storage capacity, this could become 15 or 10 factories. Where are the investors? Oh, Bloomberg is pushing bullshit narratives. Don't promulgate unverified sources, Ben.

  38. Coal generates 41% of world's electricity. How about solar? Less than 2%? Maybe less? Let's face the reality: solar and wind can not and will not replace fossil fuels. Only nuclear(molten salt reactors) can do that.

  39. A few things to note:
    The cost of solar depends very much on the situation. There is a big difference between rooftop solar and utility scale solar, and a big difference between the cost effectiveness of solar from location to location. Some solar plants have already been built and are operational that are selling electricity cheaper than coal. Almost anywhere in the world, rooftop solar is cheaper than buying from the grid when the grid is coal powered. Rooftop solar does require an upfront investment, but many companies now have financing options.
    You say in the video, that the cheapest source of power will win out. That is not true. There is a lot of politics in the power industry including massive subsidies – either to try and keep countries less dependant on foreign sources, or for other political reasons such as getting jobs in particular locations. Nuclear is subsidised for its weapons potential. In addition there is the large influence that large power producers have in politics.
    Some power sources have large political impacts such as hydroelectric dams which may have environmental effects or may affect water flow to populations or to other countries. This may result in decisions that have little to do with cost.
    The health costs of the pollution effects of coal is usually borne by the country not the produces.
    Finally, rooftop solar completely changes the equation and ownership of power production and since many municipalities make money from supplying power even if they are not the producers, there is often local politics involved in rooftop solar.

  40. 70k to roof my house with solar sure its a decrease but our house is only 1000 sq ft including the basement thats no where near affordable hopefully it will become cheaper

  41. What I would like to hear about that NO ONE has talked about (from what I've seen), not even Elon, is how fully autonomous automobiles will impact the insurance industry. Once that dam breaks, fewer and fewer cars will be driven by people, which means that auto incidents will drop dramatically. Won't this essentially eviserate the auto insurance industry as all cars on the road transition to fully autonomous over the next decade or two?

  42. Isn't solar already cheaper than other energy production methods since the panels produce enough electricity to pay for themselves in 10-15 years but last 25-30.

  43. Well the only thing is for Solar you have to factor in storage on top of that if you want to hand a significant percentage of energy production off to solar, wind there are some workarounds like having light weight tethered gliders that are high enough to where there is always wind but that increases your cost.

  44. The "government funding" gives green power a bad name. When we try to green power ourselves, the government doesn't like competition…

  45. Honestly, the anti-global warming arguments are stupid.
    Just Air pollution alone, is big enough a reason to go All Renewable.

  46. I don't buy into the man made climate change hypothesis, the science isn't settled, but I digress…

    I do believe in reducing man made pollution and improving green tech, to that end I'm glad solar is becoming affordable and electric cars are starting to take off. Like you say, who cares the motivation as long as solar is the best option people will use it.

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