General
Grid parity occurs when the cost of generating electricity from an alternative source (such as solar or wind) is equal to or less than the cost of purchasing power from the traditional electric grid (often from fossil fuels). Achieving grid parity means renewable energy can compete without subsidies because its levelized cost of energy is on par with retail or wholesale electricity prices. In many regions, solar and wind have already reached or surpassed grid parity, which accelerates their adoption since economic and environmental benefits align.