The Big Problem With Solar Power

Quick Overview

The true cost of solar power is significantly higher than advertised because standard Levelized Cost of Electricity (LCOE) calculations omit the substantial costs associated with energy storage needed to compensate for solar's intermittency, especially in regions with low sunshine like Northern Europe, leading to a misleading perception of cheapness when compared to fossil fuels like gas and coal.

Key Points: The Levelized Cost of Electricity (LCOE) for solar photovoltaic (PV) utility-scale power, which excludes storage, is reported between $38 to $131 per MWh (01:50, 02:10). When storage is included (Solar PV + Storage - Utility), the LCOE range increases significantly to $50 to $131 per MWh (02:10). The LCOE figures presented in the Lazard report (02:04) do not account for costs like battery storage needed for solar power during nighttime or cloudy periods, which is a major limitation. In Germany, subsidized renewable energy costs range from approximately 10-20 Billion USD per year, while US solar subsidies approach $80 Billion per year (03:43, 03:48). Solar energy performs poorly in locations like Northern Europe and Canada due to low sunlight, requiring significant battery storage, which adds substantial cost not typically factored into basic LCOE claims (04:17, 04:40). The video highlights that Ground News' 'Blindspot' feature reveals that positive stories about solar power's cheapness are disproportionately covered by media leaning left, while counter-narratives are often ignored (05:34, 06:23). A separate study presented by Fraunhofer ISE shows that utility-scale solar PV in Germany has an LCOE around 6-12 €cent/kWh, which is comparable to or cheaper than wind, but this figure is based on ideal conditions (02:33).

Context: This video, presented as a segment of 'Science News with Sabine Hossenfelder,' critically examines the widely circulated claim that solar power is exceptionally cheap. The presenter scrutinizes the Levelized Cost of Electricity (LCOE) metric used by financial advisors like Lazard, explaining that these calculations often fail to incorporate the necessary costs of energy storage solutions required to provide reliable power when the sun is not shining, leading to an inflated sense of cost-competitiveness for solar energy.