A report issued by the U.S. Energy Information Administration shows average construction costs for solar, wind and natural gas-fired electricity generators fell in the past few years.
The drop was reported in 2021 compared to 2020 according to the EIA’s recently released data.
Average construction costs fell by 18% from 2020 for natural gas-fired generators, by 5% for wind turbines, and by 6% for solar photovoltaic systems.
These three technologies—solar, wind, and natural gas—made up more than 91% of the capacity added to the U.S. electric grid in 2021. Investment in new electric-generating capacity in 2021 increased by 10% from 2020 to $50.8 billion dollars.
Average U.S. solar construction costs across all solar panel types fell 6% to $1,561 per kilowatt (kW) in 2021. The decrease was primarily driven by a 10% drop in the construction cost for crystalline silicon tracking panels, which fell to $1,423/kW, their lowest average cost since 2014.
The average construction cost for crystalline silicon fixed-tilt panels increased by 5%, making them the most expensive of the major solar technologies at $2,047/kW. The average cost for Cadmium telluride panels remained relatively stable, decreasing only 1% to $1,626/kW in 2021.
Most solar panels installed in the United States are crystalline silicon tracking panels. Unlike fixed-tilt systems, solar tracking systems automatically move to follow the sun as it moves across the sky, allowing more continuous sun exposure and, therefore, greater electricity production. In 2021, crystalline silicon tracking systems accounted for 56% of the utility-scale solar capacity added to the U.S. power grid.
The average construction cost for U.S. onshore wind turbines fell 5% in 2021 to $1,428/kW. The average construction costs for all three wind turbine size groups decreased slightly in 2021. The cost for the largest wind farms—those with more than 200 megawatts (MW) of capacity—remained relatively flat, decreasing by 1% to $1,382/kW. Wind farms ranging from 100 MW to 200 MW also decreased in average construction costs to $1,464/kW in 2021, down 4.4%. Average construction costs for wind farms with 1 MW to 100 MW of capacity decreased by 22% to $1,949/kW in 2021.
Source: EIA