🌅 Solar Is the Fastest Growing Electricity Ever

SOURCE

Goldman Sachs

WHAT TO KNOW

• Solar power has generated 2,129 terawatt-hours of electricity in the 11 years since the technology has taken off, making it the fastest growing electricity source of all time. Researchers at Goldman Sachs found solar accounted for 8% of all global power generation over the past 12 months (in a first, solar was Europe’s largest source of power in June), and predict solar installations will rise to 914 gigawatts by 2030, 57% above last year’s output.

WHY IT MATTERS

• One big reason solar has skyrocketed is because the global industry has become better at manufacturing, installing, and maintaining solar panels. In fact, the learning-by-doing throughout the solar industry over the past 20 years has reduced the investment cost of solar panels faster than for any other investment good.

CONNECT THE DOTS

• Solar technology follows an industrial effect known as Wright’s Law (a.k.a., a learning curve), which posits that for every cumulative doubling of units produced across an industry, the cost of production falls by a constant rate. When it comes to solar, over the past 40 years, the price of solar panels has dropped by 20% with each doubling of global capacity.