Journey to Grid Parity: Three Converging Forces Provide a Tailwind for US Renewable Power

Deloitte Center for Energy Solutions

[Press Release] In the U.S., the debate about when renewable energy will achieve grid parity, or the ability to compete on equal footing with conventional sources of generation, generally assumes the continuation of at least some state and federal subsidies for wind power and utility-scale solar photovoltaics. The latest report from the Deloitte Center for Energy Solutions, Journey to grid parity: Three converging forces provide a tailwind for U.S. renewable power, takes a different tack. In the analysis, subsidies have been purposefully excluded from the assessment of grid parity in order to provide a different, and perhaps more relevant, perspective on the competitiveness of the renewable energy sector.

The analysis indicates that renewable power generation reaching grid parity without federal or state subsidies is not imminent, except in certain markets possessing the most robust renewable resources and having relatively high wholesale power market prices. Indeed, without dramatic cost declines and improvements in efficiency and utilization, it is unlikely that some parts of the U.S. can reach grid parity without federal or state incentives within the next 10-15 years.


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