California is the nation’s largest solar market in the nation, thanks to its incentives and rebates, which include a 33 percent renewable energy standard and the Million Solar Roofs programs.
And with a number of the largest solar projects in the world planned to start supplying utilities with power beginning to come online (at least partially) this year, it’s no wonder that the market has reduced prices to near grid parity levels. But now some are saying the cost of residential solar could reach grid parity by as early as mid-2014.
Environment California’s Research & Policy Center estimated that when the price of installed solar falls to $5.25 per watt, without rebates, that it will have reached grid parity in the market.
“If progress continues at the same rate it has over the past four years, residential prices will reach this cost-competitive position without rebates in mid-2014. Outside investment analysts place this milestone at around 2016,” the center said in its recent report, Building a Brighter Future.