Grid parity
Reached grid-parity before 2014
Reached grid-parity after 2014
Reached grid-parity only for peak prices
U.S. states poised to reach grid-parity
Source: Deutsche Bank, as of February 2015 (see file description)
Grid parity (or socket parity) occurs when an alternative energy source can generate power at a levelized cost of electricity (LCOE) that is less than or equal to the price of power from the electricity grid. The term is most commonly used when discussing renewable energy sources, notably solar power and wind power. Grid parity depends upon whether figures are calculated from the point of view of a utility or of a retail consumer.
Reaching grid parity is considered to be the point at which an energy source becomes a contender for widespread development without subsidies or government support. It is widely believed that a wholesale shift in generation to these forms of energy will take place when they reach grid parity.
Germany was one of the first countries to reach parity for solar PV in 2011 and 2012 for utility-scale solar and rooftop solar PV, respectively. By January 2014, grid parity for solar PV systems had already been reached in at least nineteen countries.
Wind power reached grid parity in some places in Europe in the mid 2000s, and has continued to reduce in price.