Here’s a quick rundown of how prices for different generating resources are predicted to change in the coming decades.
Projected change in price by fuel type, 2022-2050
Solar, wind, and hydropower are based on the projected levelized cost of energy, which includes capital expenditures and operating costs, while natural gas, coal, and nuclear are based on the projected cost of only the heat content of these plants. Levelized costs do not include federal tax credits that can further reduce the cost. Projections are based off the dollars per megawatt-hour in 2022 dollars.
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- The average cost of battery storage systems is anticipated to drop more than 50% by 2050.
- The cost of utility-scale solar in 2022 was down 84% from 2010.
- Solar power purchase agreements in the West were an average of $10/MWh lower than in other regions.
- Larger utility-scale solar projects (20 MW+) cost 26% less per MW than projects between 5-20 MW.
Sources:
Annual Energy Outlook, 2023. Energy Information Administration
Annual Technology Baseline. National Renewable Energy Laboratory
Utility-Scale Solar, 2023 Edition. Lawrence Berkeley National Laboratory
