Average Cost of Energy Sources

Average Cost of Energy Sources

Proof Point

Wind and utility solar costs, averaging between at $45 and $49.5 per megawatt-hour, cheaper than fossil fuel coal and natural gas

Average Cost of Energy Sources

2017 (US$/MWh)

Proof Point Findings

  • Low-Cost Wind Power – Wind power found cheapest among renewable energy and conventional sources, averaging at $45 per megawatt-hour in 2017
  • Renewables vs Fossil Fuels – Wind and utility-scale solar photovoltaics averaging at $45 and $49.5 per megawatt-hour, beat conventional sources of energy, such as fossil fuel coal costing $101.5 per megawatt-hour on average
  • Stabilizing Prices – Generation costs of solar dropped 36% and wind 24% between 2013 and 2017, but experienced slowdown from 2016 to 2017 at 9% and 4%, respectively
  • Key Drivers – Include more competitive pricing as suppliers and installers increase, improved labor productivity and performance, improvements in renewable technologies, optimized system configurations, and government policy support





Date Last Updated

February 5, 2018

Leave a comment