Price difference between solar power generation and city electricity

How much does electricity cost in 2023?

Amongst the different sources of renewable electricity generation, concentrating solar power and offshore wind were the most expensive in 2023, with an average cost of 11.7 and 7.5 cents per kilowatt-hour, respectively. In contrast, onshore wind electricity generation cost an average of 3.3 cents per kilowatt-hour that year.

Why are electricity generation costs important?

Electricity generation costs are a fundamental part of energy market analysis, and a good understanding of these costs is important when analysing and designing policy to make progress towards net zero.

Are solar PV projects reducing the cost of electricity in 2022?

Between 2022 and 2023, utility-scale solar PV projects showed the most significant decrease (by 12%). For newly commissioned onshore wind projects, the global weighted average LCOE fell by 3% year-on-year; whilst for offshore wind, the cost of electricity of new projects decreased by 7% compared to 2022.

How much does wind electricity cost per kilowatt-hour?

In contrast, onshore wind electricity generation cost an average of 3.3 cents per kilowatt-hour that year. Get notified via email when this statistic is updated.

How much does a megawatt hour of electricity cost?

Back in 2010, a megawatt hour of electricity gleaned from solar photovoltaic cost a global average $378 to generate. That's without the effect of any subsidies which may have been applicable in some areas.

What are generation costs?

Generation costs are used as inputs to the department’s analysis, including the setting of Administrative Strike Price setting for Contracts for Difference allocation rounds. These assumptions are reviewed at each allocation round. However, it is important to note that levelised costs are not the same as strike prices.