Grid parity is when an alternative source of energy can be generated at a cost which is the same or less than the price of buying power from the electric grid. This mostly refers to renewable and eco-friendly energy sources such as the wind and solar power.
Solar grid parity happens when the cost of solar power becomes the same as the cost of grid power. Solar power is considered the most likely form of renewable energy that can easily reach grid parity. This is good news to the world as the use of non-renewable sources of energy such as fossil fuels have led to drastic environmental pollution and natural resources depletion.
There are three types of grid parity. The first types are residential grid-connected in which photovoltaic systems use solar panels to generate usable solar energy. The second type of grid parity is in industrial/ transport/ commercial sectors and the third type is known as general power generation. These types of grid parity are ranked according to the price of the energy source that they displace. As compared to the first phase, the other two phases are much harder to achieve as these compare the prices of photovoltaics to commercial electricity prices.
The best way to reach solar grid parity is to reduce the prices of solar photovoltaic systems. It is also important to encourage more people to convert to using solar photovoltaic systems instead of buying electricity from the grid. This way, they are able to produce their own electricity. Moreover, they save on the cost of paying huge electricity bills Advances in solar technology arise from the reduction of the cost of solar panels installation and increased efficiency of the solar panels themselves. Solar panel manufacturers have even come up with new ways of storing solar energy so that solar energy can still be used at night or round-the-clock
Grid parity, however, is not easy to achieve when it comes to solar power. This is because the electricity supply is supposed to be around the clock. The availability of sunlight may not be completely reliable as well. For instance, on dull days with dark clouds or during winter, there is decreased amount of sunlight or none at all
Even though we are still a long way from reducing dependence on fossil fuel-generated energy , complete grid parity can be achieved and improved solar photovoltaics technology in the days to come and it is a key contributor to increasing the accessibility and usage of solar power.