Solar power could be the cheaper power by 2016

by EUGENE SANDHU
Oct 20th 2008 @ 5:00PM

Good news for solar power enthusiasts - in only eight years,solar power could become cheaperthan the dirtier power-producing sources we use today.

And eight years should work well. American government tax breaks for the solar industry are set to expire in 2016, which is eight years from now.

While the idea of solar power has been getting me all nerd-ed out since my first solar-powered calculator, the reality is that it produces a measly 1% of energy for the United States. In order for it to stay competitive with more polluting coal or natural gas, the industry has relied on government subsidies.

If solar power gets cheaper than regular power, those subsidies would not be necessary. Turns out we can partly thank India and China for this. Power demands from Asia will continue to grow, even if the global economy continues its slump. This will keep coal and gas prices high (coal prices, alone, rose by 163% in 2008) and make solar power more attractive.

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