Subsidies aside, DOE targets $0.03 per kWh solar to undercut fossil fuels by 2030

The U.S. Department of Energy has set a goal of pushing the cost of large-scale solar power down to 3 cents per kilowatt-hour by 2030, without relying on subsidies. That would be half the 2017 cost of 6 cents per kilowatt-hour and would make solar cheaper to run than most fossil fuel power plants. The push comes as federal tax credits for solar are set to phase out on a fixed schedule, so the industry has less time to reach these prices on its own.

The department is funding research into cheaper solar cell materials and more efficient panels, along with storage technology that lets solar power keep flowing after the sun goes down. For solar-thermal plants that store heat to generate power on demand, the targets are 5 cents per kilowatt-hour for systems with 12 hours of storage and 10 cents for shorter, 6-hour systems. Separately, the government wants battery storage costs to fall to $100 per kilowatt-hour by 2040, which would let solar-plus-battery systems supply most of the country's electricity by 2050.

Other efforts target the paperwork and delays that slow down solar projects, including faster permitting tools for local governments and programs to clear backlogs in connecting new solar and battery systems to the grid.

None of this changes rebates or incentives available today. But if these cost targets are met, the price of electricity from solar could keep falling over the next several years, which may show up in future utility rates and in the economics of adding rooftop or community solar to a home.