Comparing Electricity Costs
Since costs have been steadily decreasing, new solar PV systems are occasionally among the least expensive cost-options for generating electricity. Recent policies are aimed to promote solar energy. Tax incentives are provided to reduce initial costs for homeowners and businesses. Previously, lifetime costs for solar energy have been higher than other sources of energy. However, in recent years this has been changing. To compare costs with other sources of energy production Levelized Cost of Energy Analysis (LCOE) compares the lifetime costs (the initial construction and installation cost, operation and maintenance, fuel, and other costs.) In 2019 the LCOE for utility-scale projects ranged from $32/MWh to $42/MWh. In 2019 the LCOE for wind energy was $28/MWh-$54/MWh, and Natural gas combined cycle generation was $44MWh-$68MW.
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