Energy/3 min exploration

The price of a sunbeam

How far can the cost of a technology fall in fourteen years?

Experiment 0201 / YOUR INSTINCT

How much did the global average cost of new utility-scale solar electricity fall from 2010 to 2024?

Estimate the decline in lifetime generation cost per unit of electricity from newly commissioned solar farms.

YOUR ESTIMATE
025507510020102024−40%COST DECLINEGLOBAL AVERAGE · NEW UTILITY-SCALE SOLAR
Cost index: 2010 = 100. Endpoints connected for comparison; this is not the annual cost trend.
40%
No declineFalls to zero

A rough guess is enough.

The bigger picture IRENA · 2010–2024 comparison

What the numbers mean

The same unit of solar power, at roughly a tenth of the cost.

IRENA's global weighted average fell from USD 0.417 to USD 0.043 per kilowatt-hour. A 2010 cost of 100 becomes about 10 in 2024.

Read the sources
01

Compare whole lifetimes

Levelised cost of electricity, or LCOE, spreads a plant's costs across its expected lifetime output. IRENA gives larger new projects more weight in each year's average. It measures generation cost; a household electricity bill includes other charges too. [1]

02

One huge fall, many small changes

Cheaper equipment, manufacturing scale and improved efficiency helped drive the decline. Yet global solar LCOE was almost flat from 2023 to 2024. Progress does not follow a perfect downhill line: a long trend cannot promise lower costs every year or everywhere. [1]

03

Cheap generation still needs a working grid

The International Energy Agency explains why a plant's generation cost cannot describe a whole electricity system. Solar output changes with daylight and weather. Batteries, power lines, shifts in when people use electricity and other generators help match supply to demand. Cost matters, and so does having power at the moment it is needed. [2]

Sources & method

How we worked it out.

IRENA · 2010–2024 comparison

IRENA's global capacity-weighted utility-scale solar PV LCOE comparison: (0.417 − 0.043) ÷ 0.417 × 100 = 89.7%, rounded to 90%. This does not measure rooftop quotes or retail tariffs.

  1. 01International Renewable Energy AgencyRenewable power generation costs in 2024: solar PV (opens in a new tab)
  2. 02International Energy Agency / OECD Nuclear Energy AgencyProjected costs of generating electricity 2020: interpreting LCOE (opens in a new tab)