Solar cost in Australia is likely to become cheaper than fossil fuels

According to the new data,the New South Wales(NSW) as one of most populous state in Australia, shows the trend of the cost of electricity from solar energy is more equivalent to the price of electricity from coal, so there is the possibility it can go to the grid parity. If this happens, then the possibility of solar cost, including the initial setup of rooftop solar panels would be cheaper than electricity from fossil fuels.

Subsidies are the factors in achieving grid parity to remote areas in NSW, which has made the cost of households feeding power to the electricity grid passed 28 ¢ a kilowatt hour. This amount was comparable to the price to buy coal-fired power possessed by a utilities company.

The peak of the NSW bonus scheme has caused losses to the industry, i'ts has reduce up to 93 percent in rooftop panel installations. A commercial solar panel manufacturer in Sydney,SilexSolar would outsourced the solar cells production to the China. The company could no longer afford to compete with cheaper, imported solar cells.

According to Andrew Blakers, the director of the center for sustainable energy systems from Australian National University, the grid parity has been achieved in many places, except Melbourne and Hobart. About thousands of households are still waiting to be installed their solar panels under the $1.9 billion solar bonus scheme.

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