Austin Energy in Texas is set to sign a deal expected to result in one of the lowest-priced solar power arrangements in the world. Under the unprecedented agreement between Austin Energy and SunEdison, the utility will buy solar power for less than $0.05 per kilowatt hour.
The Austin American-Statesman, the utility. owned by the city of Austin, has approved an agreement with SunEdison to buy electricity from two solar farms in West Texas at a price of just below $0.05 per kilowatt hour – considerably lower than the standard price for solar energy and less than a third of the price Austin Energy agreed to pay in 2009 for electricity from a smaller solar installation east of the city.
The Austin American-Statesman cited Jurgen Weiss, an energy economist with the Brattle Group, who added, "It is certainly at the very low end of the prices I have seen. As many had predicted, we’re entering a time in which, with some caveats, solar presents quite an attractive alternative to conventional sources."