Learning curves will lead to extremely cheap clean energy

I'm sure there will be some flaws, but

Let's say you have a company that develops solar panels.

In order to justify the equipment to produce them, you have to know you are gonna be able to sell so many. Preferably a little more than what you would need to break even.

So... let's say you get in a position where you are doing better than breaking even.

Then you start looking for ways to either:

  1. Improve output so you can charge more
  2. Reduce production costs so that you can either lower prices or churn more profit.

If it takes you 20 months to sell a batch of solar panels, you won't be doing many experiments. At best, you'll be able to produce a new batch every 20 months, and thus you'll be only able to make improvements every 20 months.

If it takes you 1 month to sell a batch of solar panels, however, you'll be able to justify running a new batch every month, and thus justify tweaking the production methods much more frequently.

There are issues with materials that need to be addressed, but I'd hardly call that a unique problem to energy production. if we can raise the prices on new materials, we can hopefully get the same thing going with recycling, where demand for recycled materials is sufficient to drive innovation in materials recycling.

/r/solarpunk Thread Parent