Planetary Technologies LLC is an investment fund and a startup on a mission to support scalable technologies that can help the world mature beyond fossil fuels at the pace necessary to avoid the worst consequences of global warming.
The company, managed by entrepreneurs, engineers and scientists Rob Carlson and Rik Wehbring, recently published its first in-depth research report that analyzes solar power, its future plausibility, economic and financial constraints and perks. The report is titled: “The Sun Has Won, Part 1: Market Inevitabilities In Electricity Production”.
According to the research from Planetary Technologies, solar power now provides the lowest cost electricity generation in history. The cost of capital for solar projects is now at least 4 times lower than the cost of capital for fossil fuel projects.
New solar installations currently constitute more capital-efficient electricity generation than any other source with the exception of wind, which is economically and physically efficient only when installed at very large scales.
The research also shows solar power is now a better, and lower-risk investment than new fossil-fueled electricity projects which is a game-changer for the industry.
Some of the reasons for this falling cost trend are technological change, economies of scale, and learning lessons derived from the expansion of manufacturing. Even though there are still new projects in development for natural gas and other fossil fuels stations, the calculations show by 2025, operating the vast majority of them would be inefficient and uncompetitive when compared to solar power capacities with battery storage.
Despite the cost advantage, there are many countries that build and operate coal and gas generating capacity because they provide both electricity generation and employment. Political parties could also experience pressure from the fossil fuels industry to fund its operations for the time being to ensure the utilization of current accessible resources.
According to Planetary’s analysis, the evidence though concludes solar power has economic and financial advantages relative to fossil fuels that in the next thirty years will see it dominating the global electricity production.