Cost reduction potential of large-scale solar PV
The STA analysis shows that the cost reduction of large-scale solar will occur more
rapidly than DECC's costs have shown: a 33% drop in costs to 2020, with a further
11% reduction in the period 2020-2030. While individual technology cost is not the
only consideration in developing efficient low-carbon electricity systems, this
reduction would indicate that solar PV is cheaper than gas (Combined Cycle Gas
Turbine or CCGT) by 2018, five years earlier than DECC suggest. It also implies that
solar PV becomes cheaper than the wholesale electricity price between 2025 and 2028
- grid parity.