Utility solar prices will continue to drop all over the world even without subsidies

Hardware costs, cost of labour, favourable cost of capital, low taxes and low, but positive, profit margins all contributed to lowering the price of utility solar power in the Middle East. These prices and policies can be replicated elsewhere without direct subsidies and prices will continue to reduce in the future. Messages for policy Electricity from photovoltaics is cheaper than electricity from fossil fuels in sunny regions, when the right financial conditions are met. Reducing the cost of financing is the key to the widespread implementation of low-cost, large-scale solar energy projects. When financial costs are low, well-designed solar energy projects will pay for themselves: the revenues from selling electricity at market price are enough to pay off the initial investment. Governments can support renewable energy development without subsidies, through direct investments, risk mitigation or low-interest loans to solar energy projects. Local authorities should identify ways to reduce soft costs for project developers, and allow construction of solar projects close to existing access roads and electrical transmission infrastructure.