Utility-scale solar costs rose 18% but remain the cheapest new-build generation technology, according to Lazard. Combined-cycle gas plant costs have climbed to their highest level in 15 years due to equipment shortages, inflation, and financing costs. Growing electricity demand from AI data centers and electrification is prompting utilities to continue investing in new gas-fired generation.
The cost of unsubsidized utility-scale solar rose by 18% to $40-$98/MWh, driven by higher capital costs, interest rates, tariffs, and supply chain pressures. However, even with these hikes, solar remains the cheapest new-build generation technology globally.
