- Between the period 2013 to 2018 U.S. costs for solar power fell 50 per cent
- Fall in costs are primarily driven by cheaper technology and components
- Global solar capacity rose from 40 G.W. to 580 GW over the past decade
According to a U.S. Energy Information Administration (EIA) findings, the cost of construction for new solar and power plants will continue to fall in the U.S. The prediction is backed by data which shows how the average costs for solar and wind generation sources fell in 2018 compared to previous years.
While the average costs for constructing solar power plants remained relatively higher when compared to wind and natural gas, the price is rapidly falling. The average cost of solar in 2018 was $1,848 per kW, a 21 per cent decrease from the preceding year. For wind turbines, there was a 16 per cent reduction in average construction cost to $1,382 per kW. Improved efficiency technology and cheaper components contributed to the decrease. Increasing favourable government policies are also making solar power cheaper.
While this data is restricted to the U.S., the global renewable energy sector have seen a significant decrease in costs. Over the past decade, global renewable energy costs have continued to fall as capacity has increased. The same amount of renewable energy investment now provides more capacity than they did a decade ago. Lower global costs will still lead can only help accelerate renewable energy on the continent, even though solar energy costs in Africa are not reducing at the global rate.