Solar energy pricing is at an all-time low, according to a new report released by Lawrence Berkeley National Laboratory (Berkeley Lab). Driven by lower installed costs, improved project performance, and a race to build projects ahead of a reduction in a key federal incentive, utility-scale solar project developers have been negotiating power sales agreements with utilities at prices averaging just 5¢/kWh. These prices reflect receipt of the 30% federal investment tax credit, which is scheduled to decline to 10% after 2016, and would be higher if not for that incentive. By comparison, average wholesale electricity prices across the United States ranged from 3 to 6 cents/kWh in 2014, depending on the region.
Key findings from Berkeley Lab's latest "Utility-Scale Solar" report - which each year draws upon large volumes of empirical data to identify key trends in project costs, performance, and pricing among ground-mounted solar projects larger than 5 megawatts (MW) - include the following:
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This work was funded by the U.S. Department of Energy's SunShot Initiative within the Office of Energy Efficiency and Renewable Energy.
Lawrence Berkeley National Laboratory addresses the world's most urgent scientific challenges by advancing sustainable energy, protecting human health, creating new materials, and revealing the origin and fate of the universe. Founded in 1931, Berkeley Lab's scientific expertise has been recognized with 13 Nobel prizes. The University of California manages Berkeley Lab for the U.S. Department of Energy's Office of Science. For more, visit http://www.lbl.gov .
DOE's Office of Science is the single largest supporter of basic research in the physical sciences in the United States, and is working to address some of the most pressing challenges of our time. For more information, please visit science.energy.gov .
Additional Information: The full report ("Utility-Scale Solar 2014"), a PowerPoint briefing that summarizes the report, and an Excel workbook that contains much of the data presented in the report, can all be downloaded from: utilityscalesolar.lbl.gov/ In addition, a webinar covering key findings will be held at 2 PM eastern on Wednesday, September 30. To register for the webinar, please visit: https://cc.readytalk.com/cc/s/registrations/new?cid=yjrypmiauu4a
Technical contacts: Mark Bolinger (603-795-4937) and Joachim Seel (510-486-5087)