6.25.2008 - 11:42am ET

(CSRwire) WASHINGTON, D.C./PORTLAND, OR. - June 17, 2008 - A new study makes the case that solar power is emerging as a cost-effective hedge against fossil fuels and is likely to reach cost parity with retail-electricity rates in most regions of the U.S. in less than a decade.

The Utility Solar Assessment (USA) Study, produced by the green-economy nonprofit, Co-op America, and clean-tech research and publishing firm, Clean Edge, provides a comprehensive roadmap for utilities, solar companies, and regulators to reach 10% solar in the U.S. by 2025. The report can be downloaded at www.cleanedge.com and www.solarcatalyst.org (Co-op America's solar program Web site).

The study finds that significantly scaling solar power in the U.S. will require the active involvement of utilities. The study delivers a to-do list for the three key stakeholders in the nation's solar industry. Among others, the action items include:

• For utilities: Take advantage of the unique value of solar for peak generation and alleviating grid congestion; implement solar as part of the build-out of the smart grid; and adapt to new market realities with new business models.
  
  
• For solar companies: Bring installed solar systems costs to $3 per peak watt or less by 2018; streamline installations; and make solar a truly plug-and-play technology.
  
  
• For regulators and policy makers: Pass a long-term extension of investment and production tax credits for solar and other renewables; establish open standards for solar interconnection; and give utilities the ability to "rate-base" solar.

• For the first time solar power is beginning to reach cost parity with conventional energy sources. As solar prices decline and the capital and fuel costs for coal, natural gas, and nuclear plants rise, the U.S. will reach a crossover point by around 2015.
  
  
• Installed solar PV prices are projected to decline from an average $5.50-$7.00 peak watt (15-32 cents kWh) today to $3.02-$3.82 peak watt (8-18 cents kWh) in 2015 to $1.43-$1.82 peak watt (4-8 cents kWh) by 2025
  
  
• Solar power offers a number of advantages over conventional energy sources. Among them, the ability to deliver energy at or near the point of use, zero fuel costs, minimal maintenance requirements and zero carbon-based source emissions.
  
  
• The investment to arrive at 10% solar in the U.S. is not small, reaching $450 billion to $560 billion between now and 2025, an average of $26 billion to $33 billion per year. However, given utilities’ existing capital costs such an investment is not prohibitive. To put the investment in perspective: Utilities spent an estimated $70 billion on new power plants and transmission and distribution systems in 2007 alone.

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