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Utility-scale solar costs rise 18% despite remaining cheapest new power

Lazard’s Levelized Cost of Energy+ analysis puts unsubsidized utility-scale solar at $40 to $98 per MWh, with higher capital costs and tariffs among key drivers.

Reported · Written up by our desk · Energy Transition

The cost of unsubsidized utility-scale solar climbed 18% to a range of $40 to $98 per MWh, according to a Lazard Levelized Cost of Energy+ analysis cited by OilPrice.

The higher prices reflect increased capital costs, higher interest rates, tariffs, and supply chain pressures, including levies on solar panels, batteries, and inverters that have raised import costs, particularly for equipment sourced from Asia.

Lazard also links the uptick to compliance rules such as the Foreign Entity of Concern, FEOC, and to surging silver prices, a key input for solar cells and modules.

Even after these increases, solar remains the cheapest new-build generation technology globally, OilPrice reports, including when accounting for auxiliary firming costs tied to solar’s intermittent output. Meanwhile, the analysis shows the cost for newly built combined-cycle gas turbine plants has risen to $48 to $107 per MWh, hitting a 15-year high.

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