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Cost of solar in USA increases by 18 per cent, but remains the cheapest energy source
- 6 hours ago (2026-07-14)
- David Flin
Net Zero Taiwan and Energy Taiwan 2026
The financial advisory firm Lazard has produced a report that states that the cost of building solar power projects in the USA has increased 18 per cent year-on-year as a result of tariffs, high interest rates, and other cost pressures. However, solar remains the cheapest form of new electricity generation to build.
Lazard’s report also stated that the levelized cost of new CCGT plants has risen to a 15-year high, with costs projected to rise further as equipment shortages and increasing power demand place pressure on the market.
Increasing demand has increased the need for new generating capacity while also increasing development costs.
Lazard said that even after accounting for the costs of backing up intermittent renewable generation to ensure reliability, solar and wind projects remain competitive with new gas-fired generation.