Solar grid parity describes the moment when electricity from solar power is less costly than electricity from the existing grid. It’s a tipping point, when democratization of the electricity system not only makes political and economic sense, but becomes more competitive than using utility-delivered electricity.
We used the following assumptions in the construction of this animated map:
- The cost of solar in 2011 is $4.00 per Watt installed.
- Grid electricity price is the average residential retail rate reported by PVWatts for the core city of the metropolitan area.
- The cost of solar decreases by 7% per year.
- The grid electricity price increases by 2% per year.
In just 7 years, 1 in 6 Americans living in major metropolitan areas could lower their electricity bill by installing solar –without any incentives. Here comes the sun!