Solar Energy Is Now the Cheapest Source of Power, Study
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A study claims solar energy is now the cheapest source of power, but commenters debate the findings, questioning whether the cost analysis includes factors like storage, transmission, and land costs.
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That being said, the quotes from the author were more to the point of it being a milestone that in the UK that Solar+Battery systems were now less expensive than gas/coal.
To my understanding, this is a milestone vs "raw" production numbers, which you're correct in saying have had solar as the cheapest option for years.
Germany also has absolutely terrible solar resources, worse than any continental US state, and is also deploying tons and tons of solar.
Solar really is one of the more amazing technologies of our time, especially when combined with batteries, which advance almost as fast.
We will have such greater reliability, cost, and air quality as coal is completely replaced by modern clean energy systems.
What the UK cannot do is concentrating solar. The efficiency absolutely crashes in diffuse light.
Regarding concentrating solar: are people still trying to make that work for commercial generation? I thought this had generally failed to pan out for electricity generation.
There are still plants out there, but I don’t know how many are still operating versus being decommissioned.
None of them work on overcast days because they rely on parallel rays of light.
Self-cannibalization is infinitely preferable to the regular sort of cannibalization.
(BTW, this is my crowd at Surrey, and Ravi is my (IfS) director!)
It made it that you were guaranteed a certain rate for x amount of years. As a result people were driving to farmers to rent their roof to install solar on it.
[1] https://www.authorea.com/users/960972/articles/1329770/maste...
Ultra cheap thermal storage promises cost at least an order of magnitude below that.
Abstract here: https://www.authorea.com/users/960972/articles/1329770-solar...
Which links to this .docx: https://www.authorea.com/users/960972/articles/1329770/maste...
Intraday anti-correlation is there, but it's more complicated:
https://bmrs.elexon.co.uk/generation-forecast-for-wind-and-s...
The US picture varies a lot over the contiguous states, I think, but often, again, there is anti-correlation in general.
So transmission of solar should be less, as the sun shines everywhere, and people like to build houses where it shines the most.
But no, neither coal nor nukes would be welcome in cities just to reduce transmission costs!
When a site is repowered with new panels, the old panels are often reused, as well, and there's a robust secondary market for panels.
In short: disposal costs are well in line with other technologies, at least according to this consultant (top hit on a web search):
https://thundersaidenergy.com/downloads/solar-power-decommis...
In, Ga, As, P, Si, Zn, Se, Ge, Cd, Te, Pb, etc. The duh materials. Sometimes the whole panel is thin crystals of GaAs. You have to melt that down to recycle.
Usually lead used the solder, if there is lead, is the biggest risk!
Even nukes are more eco friendly, even if you include things Fukushima, maybe Chernobyl too. The elephant foot is going to passivate itself before the collapse of human civilization could occur. I don't know same can be said about panels blown away in rainstorms.
GaAs photovoltaic cells, InGaAs photovoltaic cells, etc., do exist, but aren't used in utility-scale solar power, because their cost doesn't compensate for their performance. Some of the other elements you list are never used at all for photovoltaic cells to my knowledge.
Wherever you got this information from, you should killfile it and make sure you don't trust any more information from that source.
The big heavy metal issue for PV has been lead for contact to the backing sheet, but this isn't an issue if you go with bifacial modules (no backing sheet).
https://www.pv-magazine.com/2020/06/13/the-weekend-read-gall... backs you up and also mentions that indium (also nontoxic, as far as anybody knows) has been tried but was not in mass use as of that article. https://www.pv-magazine.com/2022/05/24/gallium-doping-and-so... talks about the potential of "rejuvenating" gallium-doped PV cells.
Most solar is monocrystalline Si with tiny amounts of dopants such as P and B, not especially difficult to deal with. Ag contacts, Al frames, more Si for the glass, and maybe most troublesome the plastic backing sheets and insulants.
We just are not spreading heavy metals on our fields.
Construction and disposal I'm not sure to be honest, intuitively I don't think those are much more expensive.
So it's cheapest in sun peak, when it's sunny
This is literally the most important factor to consider as it is a very scare resource in some markets - nevermind that this would be a significant driver of cost for solar, as it requires massive amounts of land (and taxes). This is true for solar, wind, etc be built.
I don’t doubt that the costs are considerable but if we’re going to go down that path we need to make sure it’s applied across the board here and I imagine the gap is not as bad as you’re implying. I’m going off my gut though so I could be entirely wrong.
I think most major solar projects include land and infrastructure so only comparing the costs of the panels is like comparing hydro only based on operating the dam, not building it.
Fossil the way we're running it now is only priced out based on burning it not dealing with its externalities either.
Comparing solar cells without other direct costs is not sufficient for decision making.
The answer to this problem is more precise and complete comparisons, not fewer.
Our point is that they aren't. Find a single study the fossil fuel industry funds, hell even accepts, that includes the longterm environmental and health costs. They’ll never agree it’s accurate. This ripples out to their proponents.
We have a US president touting “clean coal” in 2025. What else is there to say?
> Our Nation’s beautiful clean coal resources will be critical to meeting the rise in electricity demand due to the resurgence of domestic manufacturing and the construction of artificial intelligence data processing centers.
https://www.whitehouse.gov/presidential-actions/2025/04/rein...
Take all that land that's currently used for fossil fuels, and replace its use with solar, and you're replacing pretty much 100% of the world's total energy demand, not just fossil fuel demand. (I need to find that citation again...)
I would regard that as a huge improvement in use from areas that are otherwise often fairly sterile from a biodiversity point of view, and only get used by a fraction of the population.
What is the 'cost' of those courses, vs PV, vs horrible climate change?
But the point remains that very significant PV can be provided on already-in-use land from homes and warehouses to reservoirs and farm land agrivoltaics.
The solar discussed is massive investments into solar farm production.
To your point, sure you can do "remote" - you still have to get a lot of power transmission lines to remote locations, and yes you still have to buy the land. Its not a 0 cost investment. But that's what the accounting looks like when discussing this topic.
Its sloppy
Separate reports in the last couple of days suggest that both Norway and Germany could get ~25% of their total solar power from viable rooftop spaces, IIRC.
And indeed one very positive feature of solar is that it IS safe to deploy AT load/demand centres, very much reducing costs and losses in the last 'distribution' mile.
Solar also works when there is no grid locally, which is useful from rural UK to Africa.
[1] https://www.pv-magazine.com/2025/10/03/rooftop-solar-could-g...
[2] https://www.cleanenergywire.org/news/rooftop-solar-housing-b...
Residential or industrial rooftops are perfect examples. Heck, sound barriers along freeways etc are now even profitable
[1] https://www.pv-magazine.com/2025/10/03/rooftop-solar-could-g...
[2] https://www.cleanenergywire.org/news/rooftop-solar-housing-b...
1: https://en.wikipedia.org/wiki/List_of_countries_and_dependen...
The UK also has a huge amount of roof-top PV potential, outside the very dense city cores, plus enough golf course space to cover all our PV needs and some I think.
Spain and France and Italy are also doing well with PV and are nowhere near done.
Land on Earth is in fact not a scarce resource.
https://elements.visualcapitalist.com/how-much-land-power-us...
https://www.weforum.org/stories/2021/10/solar-panels-half-th...
https://thebreakthrough.org/issues/food-agriculture-environm...
https://www.canarymedia.com/articles/solar/california-first-...
its simple
*Why is the cost of land ommitted ? *
A link to "rooftops" is not an answer when its primary use case is a ROI that doesn't work out unless its measured in decades.
Sloppy accounting.
My initial answer was literally going to be a Billy Madison quote. Specifically, the reply to Principal Max Anderson to Billy's rambling answer. But that's offensive, so i will just state:
you can do better!
https://www.agweb.com/news/business/4-500-acre-plus-signing-...
I suspect not. You seem to be assuming the land the solar sits on can't be put to other uses as well. Clearly this is not true in urban settings. There is usually a building sitting under the solar panels, doing whatever it did before.
But it turns out it's not true even in agricultural settings. You can still use pasture under solar panels for grazing. In fact, on marginal land the solar panels actually increase the output of grazing, because the shading increases water retention.
That's putting aside what has already been pointed out to you repeatedly: a solar panel costs around $100/m2. Agricultural land costs around $1/m2. The cost of the land is almost a rounding error.
> I don't understand. Why is it that in every single discussion about power- and in particular, solar power- is the cost of land omitted ?
You are incorrect that land costs are omitted; in fact I don't recall any sort of cost comparison that has ever omitted land costs, whether it's from Lazard or NREL or anywhere else. It's part of the CapEx, or as rent, or however it's modeled. NREL in particular looks at overall costs on completed and built systems. Further, the developers building these things know the land costs very well.
Can you point to a discussion or paper where land cost was not included? If it's still an open discussion I'd love to add the high quality solar-is-cheapest studies that all include land costs.
And as for this particular study:
First, doesn't omit the cost of land. Secondly land is only the most important resource in very very few markets. Razing skyscrapers in Manhattan would be a bad idea. Instead of farming crops or the sun in Manhattan, it's done elsewhere and shipped in.
This is even more important for solar eclipses: unlike normal sunrise and sunset which are gradual, the ramp in a solar eclipse is very steep, so the grid operator has to have enough reserve prepared in advance and ready to absorb the sudden decrease (and increase) in solar generation.
However, not every single discussion does omit it. For example, we were discussing this yesterday at https://news.ycombinator.com/item?id=45487268 and https://news.ycombinator.com/item?id=45487197, where my calculation was that even in solar-unfavorable places like the northern extreme of Germany, the cost of land barely reaches the same order of magnitude as the cost of the solar modules, even at today's record-low module prices. US$72 million of the US$200 million of the estimate mentioned above was the modules themselves, but today that would be closer to US$15 million.
The atom of truth in your confused assertion is that solar farms do take up enormous amounts of land compared to other kinds of power plants. But, at current human energy consumption levels, it's still only a tiny amount of overall land.
I'm assuming from your past submission history that you're in the US, because you mostly only post US politics stuff. The US generates about 4200 TWh electric per year, which is 480 gigawatts (https://en.wikipedia.org/wiki/Electricity_sector_of_the_Unit...). Under the 2000kWh/year/kWp conditions prevailing in the Californian Mojave Desert, parts of Arizona, and parts of New Mexico, according to https://solargis.com/resources/free-maps-and-gis-data?locali..., this would require about 2.1 terawatts (peak) of solar panels. A square meter of 22%-efficient solar panel produces 220 watts, peak, so this is about 9600 square kilometers, a 110-kilometer-diameter circle. (Although, if you don't leave spaces between the panels, you have to make them horizontal so they don't shade each other; in practice people set them further apart to use more land but less panels.)
How big is that?
It's almost 0.1% of the US, not counting the space between the panels. It's a little over twice the diameter of the VLA radio telescope in western New Mexico, a facility you might remember from the movie Contact. It's slightly larger than White Sands Missile Range (8300km²). It's 15 times the size of Lake Mead, which was created by Hoover Dam to generate electricity. It's about two thirds the size of California's Death Valley National Park (13'793km²). It would take up one eighth of the Navajo Reservation.
Almost everywhere in the US has at least half that much sunlight. Suppose you wanted to site the panels near Springport, Michigan, for some reason. You only have 1200 kWh/year/kWp there, so you need 16000km². The panels would cover a ten-county area centered on Jackson County; they would reach Lansing, and might reach from Ann Arbor to Kalamazoo.
In real life, it wouldn't be a good idea to put it all in one place like that, both because it's fragile and because it creates higher transmission-line losses; it's better to put the panels closer to where they're used, which implies spreading them apart. So probably 0.2% of every state. In an average-sized state like Iowa (145'746km²) it might be 300km², 20% of the size of an average-sized county like Hamilton County. To power the whole state.
But try to keep perspective on the total amount of land we're talking about here: White Sands Missile Range, two thirds of Death Valley, or a small part of the Navajo Reservation to power the whole country.
Which is just about the fraction of the US covered by golf courses.
It would also make the world more interdependent and thus hopefully more peaceful.
I remember reading about this in IEEE. If you google "hypergrid IEEE" you can find papers in IEEE explore, but there was also a perspective that was more readable that I read a few years ago...
I did see a proposal to build out solar in Africa and pipe it undersea to Europe. That seemed wild, and, predictably, it got canned for its impracticality.
Edit - it looks like there are several such proposals, and that they're not all cancelled:
Several travel across the Mediterranean:
https://gregy-interconnector.gr/index_en.html
https://www.ecofinagency.com/news-industry/0210-49221-egypt-...
Here's the one I thought was cancelled, which travels along the western coast of Africa to the UK:
https://en.wikipedia.org/wiki/Xlinks_Morocco%E2%80%93UK_Powe...
https://xlinks.co/morocco-uk-power-project/
https://thenational-the-national-prod.cdn.arcpublishing.com/...
Last I've seen, it would cost (roughly) $5k per kilogram that you deliver to space. Local costs for rooftop solar that I've seen are around $3k per kilowatt - and that's after the cost of installation, including power hookups, etc.
Once you factor in the efficiency loss from beaming down the power (plus the cost of building the base stations, and the cost of manufacturing these awesome solar panels), I'm not sure that it makes economic sense.
That doesn't seem _that_ wild? The Strait of Gibraltar is only about 15km wide. There are far longer HVDC undersea lines than that in Europe (longest is nearly 800km), and in China there's a 3,000km land-based HVDC line.
The real challenge here (besides the "it will be cheaper if you wait another year" problem that kinda haunts big solar/battery/HVDC projects at the moment; costs are falling fast enough that sometimes the economics are to wait) is political. Do we want to be in a situation where the European grid is dependent on, say, Algeria? Probably not; been there, done that with Russia.
For those interested
Solar tends to come with battery storage. But you could also just build the battery storage.
This is a fallacy, basically. Not least because electricity is by far the most mobile traded commodity in human history. Not enough sun today where you live? Buy your power from across the continent, where they have plenty. Or from your wind generators which are working fine. Or the wind generators across the continent if you have to. Or crank up the hydro dams (most of which rarely run at 100%) a bit to handle the shortfall. Or even fire up an idle gas plant if you absolutely can't get anything else.
The idea that solar and wind aren't (sigh) "real" is a lie that someone sold you. The real world relies on a lot of this stuff already and the promised apocalypse never arrived. Go figure.
Transmission losses are typically very substantial in most grids that are AC based. For example, a cross-country power transmission with the USAs grid would result in ~36% losses (napkin math at about 20% loss per 1000km).
Reality isn't as simple as "ship the electricity" unfortunately; it makes a lot of sense to keep generation near consumption.
Edit: Since people like this comment, take a look at this: https://patternenergy.com/projects/southern-spirit-transmiss...
A "full" transition is unlikely in our lifetimes due to the fact that the majority of the benefits can be reaped without needing such an expense.
https://en.wikipedia.org/wiki/Pacific_DC_Intertie
No reason we cant start expanding things like this to the east and west.
Here in Norway the limitations of our rather poorly connected energy grid has become very apparent last few years, with 100x price difference between regions that aren't that far apart physically.
While we've been paying "winter prices" during summer, up north they've shut down hydro plants since the prices there are so low it's less than operating costs.
That can be helped by reconductoring.
https://www.utilitydive.com/news/reconductoring-power-lines-...
To answer ajross: I'm quite sure that the shutdown of Ringhals and Barsebäck in southern Sweden has had a much greater impact on their and likely southern Norway's prices as well than building for example 10 times the equivalent solar capacity in Spain. It is not even about losses, but just the grid capacity. Theoretically the prices in Nord Pool (from southern France and western Ireland to northern Norway and eastern Baltics) should be equal. As pointed out, in practice they vary wildly. And in principle it can get even worse. It would not be too unrealistic to have negative prices in northern Norway and rolling blackouts in southern Sweden at the same time. I'll leave it as an exercise to the reader how the latter can even happen when Sweden has enough capacity to meet its power demand at that time.
> Depending on voltage level and construction details, HVDC transmission losses are quoted at 3.5% per 1,000 km (620 mi), about 50% less than AC (6.7%) lines at the same voltage.
https://en.wikipedia.org/wiki/High-voltage_direct_current
wait, is that it? I can get my electricity from a solar panel in Nevada, middle of winter, far longer than I have local sunlight for,
for about 40 cents a kwh?
And that's treated as an existential problem?
Solar panels are so cheap we should be extremely overprovisioning anyway.
That’s fucking expensive if you don’t live in Germany or California! I pay a little less than a third of that for nuclear power.
> And that's treated as an existential problem?
Yes, tripling one’s electric bill is a problem.
Likely, being able to buy from a generator across the country would REDUCE our prices. Allowing a solar farm in Nevada to compete in markets all over the country would be a large benefit to states like Maine.
Most people are not as far from the western deserts as Maine is, so they would see smaller losses. Add to that, as others have pointed out, a HVDC line is much better than 30% loss to get from Nevada to Maine.
So all this whinging is dumb. Lets build giant solar farms in Nevada deserts and ship it all across the country. Remember, I can't have local solar power past 4pm in January. This capability would replace wind or gas power
The financial fact is that solar is cheap enough that de-rating all panels by 30% to support such a "cross country grid" would be inconsequential. It's the equivalent to buying solar panels from a couple years in the past.
We should be building 2x what we "need" anyway.
Simple every grid in the united states has enough reliable generation capacity to take up the slack when solar fails. But that means the cost of building all those natural gas peaker plants is part of the cost of solar (it's never included in the LCOE).
However pumped hydro is shall we say extremely environmentally bad.
Like casually remove a mountain bad
At least in western countries. There's lots of potential in developing countries.
Think artificial volcano shape with a tube in the middle.
https://www.whitepinepumpedstorage.com/
Think 100 million times the size of that project.
24/8 * 100days * 330000Mw
This can be seen from the fact that while lifted weight storage is ridiculously easy to build with existing technology - it's a train or a crane, after all! - it has never caught on as an economically fieldable system, whereas pumped-storage hydro has wide adoption.
This is a weird position to take. How would you price out nuclear then? As that cannot respond to changes in demand quickly either? Should every power source's cost have some gas tacked on to it? Or can we just assume that for now we have a mix of sources where different sources have different pros and cons.
And as said in many other places here, fossils don't have their externalities priced in either. I wouldn't be surprised if future generations scold us for burning so much natural gas that can also be used for many other things than burning
Ultimately, what we care about, from a grid policy perspective, is the cost to provide 99% (or whatever) guaranteed 24/7/365 power. Each energy source will have its own challenges in order to do that, and for solar availablity it clearly one of them. And yes, externalities should be factored in.
> Or can we just assume that for now we have a mix of sources where different sources have different pros and cons.
Of course, but the question is: what is the right mix for the right place. And saying "solar + storage" is cheaper than gas means very different things if it can only guarantee 60% availability like in England, or 95+% in the sunniest regions of the world.
The figures reported here come from (among others) Lazard' LCOE analysis. (https://www.lazard.com/media/xemfey0k/lazards-lcoeplus-june-...) If you have a look at how it's calculated, "solar + storage" only has enough storage for 4h for instance. You cannot really meaningfully compare it directly with nuclear which is much more reliable in itself.
What LCOE says is that the system will produce X amount of energy at cost of Y. It says nothing about when that energy will be produced. An energy source that produces 365 MWh on January 1st only, and another that produces 1 MWh every day, for the same cost, will have the same LCOE. The latter is, provided you can scale it, much more useful in practice.
Look, I'm not saying that solar is bad or we shouldn't do it. It's just that the "solar is cheap" thing which is regularly reported is a bit misleading. We've heard it for years now, and yet electricity prices around the world are mostly increasing. Clearly there's a mismatch, but where does it come from? And I think part of the reason is that the "ancillary" costs of solar have been underestimated. Sure, the energy straight out of the panel is very cheap, but if you need 10s of billions in grid upgrades and storage/backup to make it work in practice, then it should definitely be included in the comparison! Just like the externalities of fossil fuels should be.
Part of that is a result of not pricing in externalities so we've never paid the actual cost. On the other hand, demand is going up a lot which means a lot more investment on the grid side as well.
If you have a level 2 charger for your ev for example, that can draw 20kW... If you asked an electrician in the 80s what the peak power a residential home could consume is, you would probably get 1 maybe 2kW at best. So all of that infra is very undersized if we stop burning stuff.
And finally, recently there's been a few disruptions in main sources of fossil fuels (looking at you, Russia)
Right, because that would change the definition of LCOE. And you are right that it's important, and there are other terms to look for, as LACE, which EIA has been putting out for a long time. And Lazard's energy reports:
https://www.lazard.com/news-announcements/lazard-releases-20...
have an entire section on "Cost of firming intermittency" where it estimates costs based on each region of the US.
This is the first time I've seen serious discussion about "firming intermittent" power sources.
I'm not sure I agree with the numbers from the various ISOs but it's still an excellent starting point.
If people could see that at some point, keeping their house at a perfect temperature with an electric heat pump would lead to them _never thinking about a heating bill again_... that would be far more concrete than promises of staving off climate change.
Well by all means, show us how to do it right at scale. The leaders in this area (California, European countries) haven’t exactly done much to deliver on the promise of cheap renewable energy.
That’s how you do it right. You set some basic rules, and then otherwise get out of the way and let economics do its thing, and stop trying to master plan and control everything. So many of the existing regs are built around huge centralized generation sources, requiring extensive planning and approvals, rather than small distributed sources.
They project a further 50% drop by 2030:
https://www.bde.es/wbe/en/publicaciones/analisis-economico-i...
Recognizing this does not mean one is hostile to renewables, even though some people that are hostile use this talking point dishonestly.
Now that we have cheaper sources of energy for parts of the day, "base" power is a much less desirable concept. It's gone from a simple and straightforward optimization problem that a middle-schooler could solve to a cost optimization problem that markets and linear solvers can solve.
Now that we have cheap storage, and solar-plus-storage is cheaper than coal in the UK, the cost optimization is getting simpler: get rid of all the base load coal!
Economy 7 off-peak rate was invented to soak up some nuke power unused by industry in the night, IIRC.
"Cannot turn off" power can be as tricky to manage as "cannot turn on", and caused some difficulty for the GB grid operator during covid...
Getting "18" hours of power, thats actually important (https://timera-energy.com/blog/iberian-price-divergence-on-i...) if you can cover the evening peak, then most of your energy costs disappear.
https://ember-energy.org/latest-insights/solar-electricity-e...
That study is already old as the prices for batteries have come down a lot more since then.
I've converted it to pdf.
https://files.catbox.moe/tfoim0.pdf
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