grid parity

The results of a new study by Lux Research show that falling costs have begun to make solar power competitive against traditional fuels but that "grid parity" remains at least a decade away – and it's not a sure thing yet.

"Total grid parity across global markets will emerge only with significant cost reductions over the next decade or more," the study, the Slow Dawn of Grid Parity, said.

Here's the vital point: These steep cost reductions must be driven by uninterrupted government subsidies starting now. This at a time when competing industries are aggressively clamoring for their own financial help from governments.

"Grid parity" is the point at which unsubsidized solar becomes as cheap, or even cheaper, than conventional energy. It's the catchall phrase where solar photovoltaics (PV) is concerned, the holy grail of cost-effective clean energy.

The good news is it already exists in some places, namely in California.

Nanosolar stole headlines in December when it shipped its first commercial batch of thin-film solar cells to a German power plant, accompanied by this future price claim: solar panels for $1 a watt.

They've sold like candy ever since. So what now?

A massive funding boost. Nanosolar has announced it has raised $300 million in equity financing to meet exploding demand, pushing its capital to a half a billion dollars.

That’s the largest fundraising for a solar startup in 2008. And it positions the six-year-old San Jose upstart as a technology leader in the race to knock King Coal off its cheap-energy throne.