Deep in the heart of Silicon Valley is the city of Palo Alto, where solar recently became the cheapest in the country.
A municipal utility recently approved 80 megawatts in solar power purchase agreements (PPAs) to meet approximately 18 percent of the city’s load, and essentially provide power for all 65,000 Palo Alto residents. The price is 6.9 cents power kilowatt-hour for the 30-year PPA.
“The price compares to the typical market price referent and would seem to be able to take on prices paid for natural gas or wind. The projects still include the 30 percent federal Investment Tax Credit.”
The three solar projects selected will come on-line in 2017, and Palo Alto will generate almost half of its electricity from renewables.
Source: Green Tech Media