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Average U.S. construction costs for solar generation continued to fall in 2019

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thackney:
Average U.S. construction costs for solar generation continued to fall in 2019
https://www.eia.gov/todayinenergy/detail.php?id=48736
JULY 16, 2021



The annual capacity-weighted average construction costs for solar photovoltaic systems in the United States continued to decrease in 2019, dropping by a little less than 3%, according to our latest data on newly constructed utility-scale electric generators. The average costs for wind turbines remained relatively stable in 2019, increasing $9 per kilowatt (kW), or a little less than 1% from the 2018 average. Costs for natural gas-fired generators had the largest change from 2018 to 2019, increasing $241/kW, or almost 29%.

Together, these technologies accounted for over 98% of the total capacity added to the U.S. electric grid in 2019. U.S. investment in all forms of new electric-generating capacity in 2019 decreased by 4.9% compared with 2018.

Solar
Solar construction costs averaged $1,796/kW in 2019, a 2.8% decrease from 2018. The decrease was driven by falling costs for crystalline silicon axis-based tracking panels, which fell to $1,497/kW in 2019. Crystalline silicon axis-based tracking panels made up almost half of the solar capacity added in the United States in 2019, at 2.5 gigawatts (GW). Among solar technologies, crystalline silicon fixed-tilt panels had the highest average cost in 2019, at $2,242/kW.



Wind
Total U.S. wind capacity additions were 39% greater in 2019 than in 2018, although the average construction cost for onshore wind turbines remained about the same. The average construction cost for onshore wind turbines was $1,391/kW in 2019, compared with $1,382/kW in 2018.

The average construction cost for wind farms with more than 200 megawatts of capacity, which accounted for the largest share of wind capacity additions in 2019, decreased by 1.3% to $1,252/kW.



Natural gas
Among wind, solar, and natural gas technologies, natural gas received the least U.S. investment in 2019, accounting for 26% of total electric-generating capacity investment across all energy sources. Most natural gas electric-generating capacity installed in 2019 was in combined-cycle facilities. Average combined-cycle construction costs increased from $858/kW in 2018 to $948/kW in 2019, a 10% increase.

IsailedawayfromFR:
So solar construction costs remain about 70% higher than natural gas.

Then why is anyone constructing solar plants in any case when gas is so much cheaper to generate power?

Kamaji:

--- Quote from: IsailedawayfromFR on July 21, 2021, 12:33:20 pm ---So solar construction costs remain about 70% higher than natural gas.

Then why is anyone constructing solar plants in any case when gas is so much cheaper to generate power?

--- End quote ---

Tax subsidies?

Bigun:
Sorry! No sale!

IsailedawayfromFR:

--- Quote from: Kamaji on July 21, 2021, 02:25:01 pm ---Tax subsidies?

--- End quote ---
I doubt they cover that much of the cost differential.

Could it be the government's forced mandates for utilities to take generated solar power?

The answer in all but a very few cases is no market forces swaying the generation of power by solar.

It is completely contrived government mandated and subsidy. Which means it costs more.

And always will be, regardless of the feel-good articles written that say otherwise.

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