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The United States Energy Information Administration (“EIA”) published an October 3rd report titled:
U.S. Construction Costs Dropped for Solar, Wind, and Natural Gas-Fired Generators in 2021 (“Report”)
The Report states that average construction costs for solar photovoltaic systems, wind turbines, and natural gas-fired electricity generators decreased in the United States in 2021 compared to 2020.
Average construction costs are stated to have fallen as follows:
- 18% for natural gas-fired generators
- 5% for wind turbines
- 6% for solar photovoltaic systems
The relevance of these three technologies (i.e., solar, wind, and natural gas) are that they are stated to have made up more than 91% of the capacity added to the United States electric grid in 2021.
The generator cost data is derived from EIA’s Form EIA-860, Annual Electric Generator Report.
The drop in costs is described in greater detail in the Report.
The decrease in United States solar construction cost is stated to be driven by a 10% drop in the construction costs for crystalline silicon tracking panels.
The average construction costs for United States onshore wind turbines are stated to have fallen 5% to $1,428/kW. These include the average construction costs for all three wind turbine size groups.
The average construction cost for natural gas-fired generators fell 18%, which is stated to have been driven primarily by decreases in the cost for combustion turbines. The average construction cost for combustion turbines is stated to have fallen 19%.
A copy of the Report can be downloaded here.
