Solar energy rises to become cheapest form of new electricity

Leading experts have shown that solar power has risen to becoming the cheapest form of generating electricity, according to data from Bloomberg New Energy Finance.

The research shows that the cost of developing energy from the sun has dropped massively in 58 countries and by at least a third in the likes of Brazil, India and China since 2010.

Developing countries in particular appear to be where solar power is flourishing the most, a point emphasised by BNEF chairman Michael Liebreich.

"Renewables are robustly entering the era of undercutting [fossil fuel prices]," Liebreich said. "Renewable energy will beat any other technology in most of the world without subsidies."

A number of large contracts sold at energy auctions have seen a driving down of prices in recent years. A contract in India went for $64 per-megawatt-hour earlier this year, before a record-breaking price of $29.10 per-megawatt-hour for a contract in Chile in August.

In many developed countries however, cities in particular are lagging behind the example set by those emerging economies. Fierce competition still exists from existing fossil fuel power stations.

"Solar investment has gone from nothing—literally nothing—like five years ago to quite a lot," said Ethan Zindler, head of policy analysis at BNEF. "A huge part of this story is China, which has been rapidly deploying solar."