BERKELEY, Calif. — Solar energy pricing in the United States is at an all-time low, according to a new report released by Lawrence Berkeley National Laboratory (LBNL). Driven by lower installed costs, improved project performance, and a race to build projects ahead of a reduction in a key federal incentive, utility-scale solar project developers have been negotiating power sales agreements with utilities at prices averaging just 5 cents/kWh. These prices reflect receipt of the 30 percent federal investment tax credit, which is scheduled to decline to 10 percent after 2016, and would be higher if not for that incentive. By comparison, average wholesale electricity prices across the United States ranged from 3 to 6 cents/kWh in 2014, depending on the region.
Key findings from the latest “Utility-Scale Solar” report — which each year identifies key trends in project costs, performance, and pricing among ground-mounted solar projects larger than 5 megawatts (MW) — include the following: