Photovoltaic solar power generation costs

The cost of solar photovoltaic power generation has been declining steadily due to the widespread availability of materials, which reduced production expenses12. In 2021, the average installed cost of solar PV systems stood at 857 U.S. dollars per kilowatt1. The cost decline can be attributed to an 85% cost decline in module price2. The global weighted average levelised cost of electricity (LCOE) of new utility-scale solar PV fell by 13% year-on-year to USD 0.048/kWh in 20213. The Solar Energy Technologies Office (SETO) is working toward a levelized cost of $0.02 per kilowatt-hour (kWh) for utility-scale solar photovoltaics4. On average, solar panels cost $8.77 per square foot of living space, after factoring in the 30% tax credit5.

Between 2010 and 2021, the average installed cost of photovoltaics worldwide declined steadily due to the widespread availability of materials, which reduced production expenses. In 2021, the average installed cost.

“A significant portion of the cost declines over the past decade can be attributed to an 85% cost decline in module price. A decade ago, the module alone cost around $2.50 per watt, and now an entire utility-scale.

The global weighted average levelised cost of electricity (LCOE) of new onshore wind projects added in 2021 fell by 15%, year‑on‑year, to USD 0.033/kWh, while that of new utility-scale solar PV fell by 13%.

SETO is working toward a levelized cost of $0.02 per kilowatt-hour (kWh) for utility-scale solar photovoltaics, $0.04 per kWh for commercial PV systems, and $0.05 per kWh for residential rooftop PV systems.

On average, solar panels cost $8.77 per square foot of living space, after factoring in the 30% tax credit.

Photovoltaic solar power generation costs [PDF] Chat with us

6 FAQs about [Photovoltaic solar power generation costs]

Are solar PV projects reducing the cost of electricity in 2022?

Between 2022 and 2023, utility-scale solar PV projects showed the most significant decrease (by 12%). For newly commissioned onshore wind projects, the global weighted average LCOE fell by 3% year-on-year; whilst for offshore wind, the cost of electricity of new projects decreased by 7% compared to 2022.

How much does solar power cost per kilowatt-hour?

At $0.03 per kilowatt-hour, electricity from utility-scale photovoltaic solar would be among the least expensive options for new power generation and it would be below the cost of most fossil fuel-powered generators, contributing to greater energy affordability. Learn more about how LCOE is calculated.

Why did solar power costs fall in 2021?

The global weighted average cost of newly commissioned solar photovoltaic (PV), onshore and offshore wind power projects fell in 2021. This was despite rising materials and equipment costs, given that there is a significant lag in the pass through to total installed costs.

What is a PV energy estimate?

Estimates the energy production and cost of energy of grid-connected photovoltaic (PV) energy systems throughout the world. It allows homeowners, small building owners, installers and manufacturers to easily develop estimates of the performance of potential PV installations

What is a grid-connected photovoltaic (PV) energy estimate?

Estimates the energy production of grid-connected photovoltaic (PV) energy systems throughout the world. It allows homeowners, small building owners, installers and manufacturers to easily develop estimates of the performance of potential PV installations. Operated by the Alliance for Sustainable Energy, LLC.

How much does solar cost in 2020?

During this time, the solar industry has seen tremendous progress in cost reduction. In 2017, the solar industry achieved SunShot’s original 2020 cost target of $0.06 per kilowatt-hour for utility-scale photovoltaic (PV) solar power three years ahead of schedule, dropping from about $0.28 to $0.06 per kilowatt-hour (kWh).

Photovoltaic solar power generation costs