…a major new study of the economics of solar, published in Harvard Business Review (HBR), finds that the waste produced by solar panels will make electricity from solar panels four times more expensive than the world’s leading energy analysts thought. “The economics of solar,” write Atalay Atasu and Luk N. Van Wassenhove of Institut Européen d’Administration des Affaires, one of Europe’s leading business schools, and Serasu Duran of the University of Calgary, will “darken quickly as the industry sinks under the weight of its own trash.”
Conventional wisdom today holds that the world will quadruple the number of solar panels in the world over the next decade. “And that’s not even taking into consideration the further impact of possible new regulations and incentives launched by the green-friendly Biden administration,” Atasu, Wassenhove, and Duran write in HBR.
But the volume of solar panel waste will destroy the economics of solar even with the subsidies, they say. “By 2035,” write the three economists, “discarded panels would outweigh new units sold by 2.56 times. In turn, this would catapult the LCOE (levelized cost of energy, a measure of the overall cost of an energy-producing asset over its lifetime) to four times the current projection.”
h/t Sid V