Unsubsidized utility-scale solar electricity will become cost-competitive with gas by 2025, according to a report from Lux Research titled, “Cheap Natural Gas: Fracturing Dreams of a Solar Future.”
It may be that increased gas penetration actually benefits solar, by enabling hybrid gas/solar technologies that can accelerate adoption and increase intermittent renewable penetration without expensive infrastructure improvements, Boston-based Lux Research said in its report.
In a statement, the report’s lead author, Lux Research associate Ed Cahill, said: “On the macroeconomic level, a ‘golden age of gas’ can be a bridge to a renewable future as gas will replace coal until solar becomes cost competitive without subsidies. On the microeconomic level, solar integrated with natural gas can lower costs and provide stable output.”
Lux describes itself as an independent research and advisory firm providing strategic advice and ongoing intelligence for emerging technologies.