Construction costs for new solar-powered utility-scale electric generators continue to decrease, according to recent data from the U.S. Energy Information Administration.
Conversely, similar costs for natural gas generators and onshore wind turbines slightly increased. These three energy technologies accounted for more than 97% of capacity added to the U.S. electrical grid in 2017.
Since 2013, the average cost of solar photovoltaic generators has fallen by 37%. This stems from the price declines of crystalline silicon axis-based tracking panels. Regardless of these cost improvements, solar generators still typically cost more to install than wind and natural gas generators. In 2017 nearly $12 billion was spent to construct solar photovoltaic plants that added 5.0 gigawatts (GW) of electrical capacity.
Comparing the construction dollars spent/kilowatt of power generated for each of these forms of electricity creation shows that while solar has a number of environmental benefits, its complexity translates to higher operating costs.
- Solar: $2,343 spent per kilowatt/hour of power created
- Onshore Wind: $1,647
- Natural Gas: $920
This has led to both onshore wind and natural gas accounting for greater percentages of new power capacity.
