Government subsidies helped green energy technology get its foot in the door, but lower costs will help the industry compete with fossil fuel. Economies of scale has been the top driver of falling prices – for example, the cost of solar power has plunged to 1/150th of its level since the 1970s and solar installation has surged 115,000-fold.
As renewable technologies continue to advance, the industry will increase efficiency and decrease costs. According to BNEF, every time global wind power doubles, there is a 19% decline in costs. Every time solar power doubles, costs fall off 24%.
Moreover, the clean energy sources could be replacing some of the so-called dirty energy, like coal, which richer Organization for Economic Co-operation and Development countries have cut demand for almost a decade.
Guggenheim Solar ETF