Changes

The main drawback to using solar power as a principle energy source is the inability to provide baseload power throughout the day and night: the sun cannot be guaranteed to shine every day, power is still in demand after the setting of the sun, and some areas of the world do not receive enough consistent sunlight to rely on solar power as a main energy source. Thus, solar power will, at least in the foreseeable future, not become a principle part of the world's energy production but may still be very useful in supplementing power demands in some parts of the world. Employment of small solar power arrays in areas that are rarely overcast (e.g. the American southwest) may allow some businesses to cheaply produce products and chemicals that require large electrical demand (e.g. the production of extremely pure hydrogen and oxygen from the electrolysis of water).

The main drawback to using solar power as a principle energy source is the inability to provide baseload power throughout the day and night: the sun cannot be guaranteed to shine every day, power is still in demand after the setting of the sun, and some areas of the world do not receive enough consistent sunlight to rely on solar power as a main energy source. Thus, solar power will, at least in the foreseeable future, not become a principle part of the world's energy production but may still be very useful in supplementing power demands in some parts of the world. Employment of small solar power arrays in areas that are rarely overcast (e.g. the American southwest) may allow some businesses to cheaply produce products and chemicals that require large electrical demand (e.g. the production of extremely pure hydrogen and oxygen from the electrolysis of water).

==Grid Parity==

==Grid parity==

Grid parity refers to the point where power provided by solar panels (photovoltaic solar) is at the same or lower price of conventional power sources such as coal, natural gas or nuclear.  The price per watt of installed solar has been steadily falling while the price of other energy sources including wind power has been steadily rising.  A historic crossover with nuclear power occurred in 2010.  In regions with adequate sun exposure electricity can now be produced at a lower cost per kWh with PV solar than with nuclear power.  The price for a DIY residential grid-tie solar system can be as low as $2.50/w (2011), before subsidies or tax credits.  At this price the system would pay for itself in ~12 years, many utilities offer incentives that can lower payback to <4 years.  Most systems carry a 25-30 year warranty.  Due to the fact that most solar power is produced when electric demand is highest, between 3pm - 7pm many utilities actually benefit from paying their customers to install solar panels since most districts do not charge peak rates.  It can cost a major utility as much as $.50/kwh during peak demand while solar production credits are usually ~$.20/kwh.  Roof-top PV can be extremely cost-effective since no land needs to be purchased.

Grid parity refers to the point where power provided by solar panels (photovoltaic solar) is at the same or lower price of conventional power sources such as coal, natural gas or nuclear.  The price per watt of installed solar has been steadily falling while the price of other energy sources including wind power has been steadily rising.  A historic crossover with nuclear power occurred in 2010.  In regions with adequate sun exposure electricity can now be produced at a lower cost per kWh with PV solar than with nuclear power.  The price for a DIY residential grid-tie solar system can be as low as $2.50/w (2011), before subsidies or tax credits.  At this price the system would pay for itself in ~12 years, many utilities offer incentives that can lower payback to <4 years.  Most systems carry a 25-30 year warranty.  Due to the fact that most solar power is produced when electric demand is highest, between 3pm - 7pm many utilities actually benefit from paying their customers to install solar panels since most districts do not charge peak rates.  It can cost a major utility as much as $.50/kwh during peak demand while solar production credits are usually ~$.20/kwh.  Roof-top PV can be extremely cost-effective since no land needs to be purchased.