The Little-Known Reason Renewable Prices Are Dropping

Can Patent Law Help Explain Why Renewables Are Getting Cheaper?

Plummeting costs for renewable energy have finally made solar and wind a viable alternative to fossil fuels. But what’s responsible for the drop in price? Technological innovation and expanded manufacturing share some of the blame, but less examined is the low cost of intellectual property.

According to a report from the International Center or Trade and Sustainable Development (ICTSD), “the basic approaches to solving the specific [clean energy] technological problems have long been off-patent. What are usually patented are specific improvements or features.” Competition between sellers brings the price of these components “down to a point at which royalties and the price increases available with a monopoly are reduced.”

Read the rest at Think Progress.