False. Switching to clean technologies will save money.

The reason why disruptions happen in the first place is because new technologies outperform older ones in terms of cost and capability, and therefore outcompete them on a purely economic basis. (Watch this video to learn more about disruptions from Adam Dorr, Director of Research at RethinkX.)

Disruptions would not occur if new technologies were not overwhelmingly cost-competitive. It therefore follows that adopting new technologies will cost less, not more, than continuing with older technologies. And this is purely in economic terms, without including the environmental, social, health and other externalized costs of fossil fuels and combustion engine vehicles.

The costs and capabilities of solar, wind and batteries (SWB) have been consistently improving for several decades. Since 2010 alone, solar photovoltic capacity costs have fallen over 80%, onshore wind capacity costs have fallen more than 45% and lithium-ion battery capacity costs have fallen almost 90%, as can be seen in the graphs below. (Read more on p15 of our Rethinking Energy report.)

These cost improvements are consistent and predictable, and each of the technologies will continue to improve throughout the 2020s. SWB will be overwhelmingly competitive on a purely economic basis in all regions by 2030.

Explore the evidence...

• Solar is now the cheapest form of energy on the planet, and the cost of converting to solar, wind and battery (SWB) is cheaper than maintaining the current system. Solar has reached what we call god parity, or generation on demand. This is where, if the cost of an individual generating their own energy falls below the cost of the current grid transmission of energy, the energy system will be disrupted. This is already happening. Learn more about the disruption and transformation of our energy systems to solar energy in this YouTube video.

• Watch co-founder of RethinkX Tony Seba explain how rooftop solar is already cheaper than grid energy in every city in China.
• 100% SWB will provide the cheapest possible electricity system between 2020-2030. It is far less expensive than new conventional power plants and in many cases is less expensive than continuing to operate existing coal, gas or nuclear power plants. Falling costs drive technology disruptions. Solar and wind are already the cheapest new generation options and cost less than existing coal, gas and nuclear power plants in many areas. The cost of SWB systems will fall another 70% between 2020-2030, making disruption inevitable. Read more about the disruption of SWB in p8 of our Rethinking Energy report.

• A 100% SWB system is much more affordable than is widely believed, and will be the cheapest option for electricity generation in most populated areas between 2020-2030. 

  SWB is an inevitable part of our future. It is an entirely new energy system, one that is affordable and will create jobs. Read p51-54 of our Rethinking Energy report to understand why, and learn more about the key implications of the energy disruption.

• Today, mainstream analyses underestimate the per-kilowatthour cost of coal, gas, nuclear and hydro power by up to a factor of four. This error misrepresents their competitiveness compared to SWB energy storage. Read more about the levelized cost of energy on p19-23 of our Rethinking Energy: Stranded Assets report.

Witness the transformation

Our analysis shows that 100% clean electricity from the combination of SWB is physically possible and economically affordable across the entire continental United States as well as other populated regions of the world between 2020-2030.

Learn more about the disruption and transformation of the energy sector.

Published on: 12/07/23