solar LCOE

Wood Mackenzie researchers say single-axis PV offers the lowest utility-scale generation costs globally, with efficiency gains and stable supply chains expected to drive down solar’s levelized cost of electricity (LCOE).

DNV’s Energy Transition Outlook 2025 report also predicts that distributed generation solar should begin outpacing utility-scale installations in some parts of the world by 2060. It adds that the levelized cost of electricity for solar is beginning to plateau and is expected to slow to an annual drop below 1% by the 2050s.

The International Renewable Energy Agency’s latest report finds little change in the global average levelized cost of electricity for utility-scale solar plants year-on-year, while the global average total installed cost of utility-scale solar projects fell by 11%.

A research team based at Lawrence Berkeley National Laboratory says that solar could have the lowest levelized cost of energy (LCOE) of all energy sources in South Korea by the early to mid-2030s. 

A study estimating the economic viability of rooftop solar in Estonia, Latvia and Lithuania forecasts the levelized cost of electricity (LCOE) for PV systems in the Baltic States at between €0.08 ($0.087) and €0.09/kWh by 2050 at a 6% discount rate.

Wood Mackenzie says the levelized cost of electricity (LCOE) in the Asia-Pacific region hit an all-time low in 2023, as utility-scale PV beat coal to become the cheapest power source. It predicts a further drop in costs for new-build solar projects, driven by falling module prices and oversupply from China.

A new report by Lazard compares the levelized cost of energy (LCOE) for various generation technologies on a $/MWh basis. It shows that utility-scale solar and onshore wind LCOE increased for the first time in 2023, at $24/MWh to $96/MWh for solar and $24/MWh to $75 MWh for wind. Nevertheless, the two renewable sources are still the economic frontrunners when compared to nuclear, gas, and coal.

The latest edition of the World Nuclear Industry Status Report indicates the stagnation of the sector continues. Just 2.4 GW of net new nuclear generation capacity came online last year, compared to 98 GW of solar. The world’s operational nuclear power capacity had declined by 2.1%, to 362 GW, at the end of June.

A nation famous for high electricity prices has seen power costs fall 15% this year, according to analyst Wood Mackenzie, a figure which will help attract $100 billion of solar and wind investment to 2030. Renewables will have to work even harder, however, to displace fossil fuels in hydrogen production.

The Chinese giant has leapt ahead of rivals who recently announced their intent to work towards the next generation of mega panels by pledging to have its 600 W Vertex product on sale by the end of March.