Solar And Wind Energy Prices Are Dropping

11th October 2024

the price of solar and wind energy has been dropping for decades, and is now competitive with or cheaper than fossil fuels.

Solar
The cost of solar photovoltaic (PV) electricity generation has dropped by 88% since 2010. The cost of solar panels has also fallen by around 20% each time the global capacity doubles.

Wind
The cost of onshore wind electricity generation has dropped by 68% since 2010, and offshore wind by 60%.

Batteries
The cost of battery storage projects has dropped by 89% since 2010.

Cost competitiveness
Solar and wind power became cost-competitive with fossil fuels between 2010 and 2022, even without financial support.

Reasons for the drop
The cost of renewable energy has dropped due to sustained government policies, maturation, and internationalization. The cost of technology also falls consistently as the cumulative production of that technology increases, which is known as Wright's Law.

Benefits
The new renewable capacity added since 2000 is estimated to have reduced electricity sector fuel costs in 2023 by at least USD 409 billion.

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