Utility-Scale Solar Costs Rise 18% but Remain Cheapest Power Source

The cost of unsubsidized utility-scale solar rose by 18% to $40-$98/MWh, driven by higher capital costs, interest rates, tariffs, and supply chain pressures, a Lazard's Levelized Cost of Energy+ analysis has found. However, even with these hikes, solar remains the cheapest new-build generation technology globally, even when factoring in auxiliary firming costs due to the intermittent nature of solar energy. Levies on solar panels, batteries, and inverters, particularly affecting equipment from Asia, have directly elevated import costs. U.S. markets…