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FuturologyBot t1_isak5g0 wrote

The following submission statement was provided by /u/manual_tranny:


Due to a combination of subsidies for manufacturing and project tax credits, the United States could see solar and wind PPAs signed at prices below 1¢/kWh. PPAs below $0 have happened before (in Portugal), however, they are still the exception the the rule.

The Inflation Reduction Act (IRA) will pay solar panel manufacturers up to 18¢/W to manufacture solar modules. Every part of the panel is subsidized - the poly silicon, wafers, cells, and modules. The Production Tax Credit, worth 2.6¢/kWh, pays out (inflation adjusted!) for 10 years after a project is constructed. And that 2.6¢/kWh will increase ~33% for modules manufactured domestically, and an additional ~33% for projects built in solar energy communities (energy communities are brownfields & other sites where coal/oil/NG were burned after Dec 1, 1999)

When we combine the cheap IRA solar panels with the PTC, that's when we see domestic solar power PPAs signed for $0/kWh or below.

One consequence of the subsidized pricing - Credit Suisse predicts that the United States could become a net exporter of solar modules to the global market.


Please reply to OP's comment here: https://old.reddit.com/r/Futurology/comments/y3ui5x/free_electricity_credit_suisse_analysis_says/isah247/

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