New study shows investment in solar energy production as cost effective or more than production of fossil fuel-based energy

Itay Lahat, Calcalist
Published: 07.28.12

Solar energy production is one of the fastest growing industries in the world and a recent study has found that it is now also as cost effective – if not more – than fossil fuel-based energy production.

The renewable energy industry is also one of the only industries to keep growing even in these financially unsound days. In the US alone, the last three months have seen the creation of 46,000 new jobs in the industry.

If the growth rate continues as it has so far, experts predict a 75% increase in solar energy production in the United States by the end of 2012.

A recent study by Bloomberg London has found that over the past 35 years, production rates for solar energy have steadily dropped to $1 per watt in 2011; meeting one of the industry’s primary goals and making the operation of solar cells cheaper than that of fuel-guzzling diesel ones.

The study believes that the trend will only grow stronger, and should it continue as it has over the next two years, solar energy production costs will become dramatically lower, thus ending the financial viability debate once and for all.

One of the report’s recommendations is to end – or at least dramatically cut – the huge subsidies given to the fossil fuel industry.

Should the solar energy industry get even a part of those subsidies, production costs will drop further, and the report predicts a huge leap in homes and businesses’ transition to solar energy, the report said.

The report concluded by saying by supporting this trend, the world has a good chance of reducing the use fossil fuels to the bare minimum by 2023 – and all that without even factoring in wind energy.,7340,L-4261284,00.html