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Wind and Solar Profits: The Battle Between Falling Costs and Declining Revenue

Dramatic reductions in the cost of wind and solar have led to optimism that they can be primary contributors to low-carbon electricity grids. But there's an important obstacle to their profitability: revenue decline.
Adding wind and solar to the grid tends to reduce electricity prices during the times that they generate. On a sunny afternoon in California, solar generation can become so large that it brings the price of electricity down to zero.
This wasn’t a problem when the first few solar plants were built, but it means that the value of new solar is lower than it used to be because it will generate during periods when