How is solar energy the cheapest option to generate electricity?

There are a lot of ways of energy generation through renewable resources, the most popular amongst them being solar energy. It is easy to get resources that are of high quality while using a source that is available in abundance. According to NASA, solar energy can be generated for another 1600 years very easily. 

Fossil fuels, gas, petroleum are some of the non-renewable sources of energy that have dominated the earth for a long time. Towards the Western Regions of the United States, solar companies in Nevada are providing solar equipment at pocket-friendly prices. 

With the wave of being cautious toward the environment, solar energy, as well as windmills are gradually taking it over while using these sources rather than fossil fuel. Below stated are some points which shows how solar energy is the cheapest source of electricity-

  • Cost-effective

While you set up a plant to convert fossil fuels into electricity, solar energy only requires the solar panel and other related equipment which can be easily installed, so it is certainly a cheaper deal than setting up a whole plant.

  • Space

It happens that for setting up a plant for electricity generation through fossil fuels, you have to either buy a space or maybe vacant some good volume of space. Whereas solar panels can be easily installed on your rooftop without taking up much of the space. So it is certainly an expensive deal to set up a plant for fossil fuel than setting up the panel at your rooftop.

  • More demand leads to falling prices

With the combination of a lot of factors that are contributing, the more the solar panels are in demand, the prices fall as a consequence. Because of Government subsidies, economies of scale, tax benefits- the production of solar panels have increased. Whereas in the case of fossil fuel, the plant which has been set up is certainly on a costlier side, and if the demand for fossil fuels increases then it would only increase its prices.

Final Overview

While there were times when solar energy was used in satellites, with each passing decade it gained momentum and now has become the cheapest source of electricity worldwide.