abstract:Grid parity (or socket parity) occurs when an alternative energy source can generate electricity at a levelized cost (LCoE) that is less than or equal to the price of purchasing power from the electricity grid. The term is most commonly used when discussing renewable energy sources, notably solar power and wind power.
It has brought solar panel costs down dramatically over just a few years, bringing grid parity within sight in a number of markets, and kicking off what many see as a potential long-term energy revolution.