Report: First Solar Reaches Grid Parity

First Solar appears to have reached an important and, for many solar companies, elusive target: grid parity, or the point where photovoltaic electricity is as cheap as conventional electric power.In a research note, Pacific Crest analyst Mark Bachman ran some calculations on First Solar’s 12.6 megawatt solar system for Sempra Generation, a subsidiary of California utility Sempra Energy. Instead of focusing on the cost per watt, which Bachman said investors have put too much emphasis on, he looked at the cost per kilowatt-hour.Bachman priced the Sempra plant at 7.5 cents per kilowatt hour, which is below the U.S. grid parity price of 9 cents per kilowatt-hour. First Solar’s plant didn’t rely on subsidies, he notes. And it is priced much cheaper than a SunPower project with an installed price of 16.4 cents per kilowatt-hour. SunPower employes a costlier, more efficient technology than First Solar’s thin-films.

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