Governments worldwide need to reduce subsidies for fossil fuels, put a real price on carbon and promote solar self-consumption, according to solar panel manufacturer REC Group.
REC outlined the calls in a letter to representatives attending the UN climate change negotiations (COP21) in Paris, which runs from 30 November to 11 December.
The letter has issued “A Call for A Sunny Commitment,” addressed to governments, organisations and other stakeholders, outlining how clean, viable and cost competitive solar energy is today.
REC said solar shows the biggest cost decreases of all renewable energies – minus 50% within six years – and has the potential to make a major contribution to achieve global climate targets.
“Yet despite becoming more and more economically competitive, solar is still sensitive to political regulations,” the company added.
REC said solar PV system costs are expected to decrease by further 40% by 2020, therefore, “it is questionable if gas and nuclear power, with all their drawbacks, are really required as ‘bridging fuels’.”
For example, with low wholesale electricity prices in the UK of £0.04/kWh, “both gas and nuclear power generation will effectively need government subsidy to get built – or significantly higher wholesale electricity prices”.
Solar, energy storage and related technologies represent a trillion-dollar-plus market opportunity as the world transitions from fossil fuels to renewable sources of energy, REC concluded.
Image: solar costs are expected to fall by a further 40% by 2020 (REC)
