LCOE for Solar PV in 2023
Solar PV is still the cheapest way to produce electricity.
It’s unlikely to be beaten by any other method of producing electricity at least in the short to medium term.
This fact has recently been confirmed by both the latest Fraunhofer ISE report (€/MWh) and by this year’s Lazard report on the Levelised Cost of Electricity ($/MWh).
Whatever questions exist about the incorporation of renewable energy sources in our national grid portfolio, the actual production costs remain low, and will continue to fall for the foreseeable future according to the International Energy Agency (IEA).
Lazard LCOE 2023
The Lazard report, published in April 2023, analyses the US market under various LCOE parameters, and has reached similar conclusions as have been published by the Fraunhofer Institute for Solar Energy for the last several years.
Utility-scale solar PV is the cheapest way to produce electricity, with the lowest price being matched by Onshore wind production. One of the principal reasons for this has been a steep decline in the cost of components over the medium term.
Lazard puts the lowest price at $24 / MWh in the US market, for both Utility-scale solar PV and Onshore wind.
Capital costs to build a Utility-scale solar farm in the US range from $700 – $1400 /kW, while building an Onshore Wind farm in the US will cost between $1,025 – $1,700 / kW
For comparison the last figure produced for the cost of Utility-scale solar farm’s in Ireland averaged €903 /kWp (~$965/kWp).
More details are available in our last article on the Photovoltaics Report.
Utility-scale Solar Farms
The Capital Costs for Utility-scale solar PV per kW, are almost as low as those for combined-cycle gas-turbines, which signals an important development in the competitiveness of renewable energy sources vs. fossil fuels.
ESB Networks is planning to accomodate 8 Gigawatts of solar energy in our national grid infrastructure.
The vast majority of this power output is going to be derived from utility-scale solar farms, which need to be correctly designed, built and operated for Irish consumers to derive the maximum benefits.
In addition, there needs to be significant deployment of a variety of energy storage technologies to manage the abundant solar energy – not just lithium-based batteries.
Solar Farms in Ireland
Solar Farms continue to be an essential building block in Ireland’s Climate Action Plan.
Many more are required to be built according to the latest ESB strategy document ‘Networks for Net Zero’.
Solar Now are delighted to work with landowners to deliver clean energy projects and build solar farms for future generations to be proud of.
Submit your enquiry below to receive a FREE CONSULTATION for your next solar PV project.
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