Solar Is Now 33% Cheaper Than Gas Power in US, Guggenheim Says
WASHINGTON -
Natural gas’s dominance as power-plant fuel in the US is fading fast as the cost of electricity generated by wind farms and solar projects tumbles, according to Guggenheim Securities.
Utility-scale solar is now about a third cheaper than gas-fired power, while onshore wind is about 44% less expensive, Guggenheim analysts led by Shahriar Pourreza said Monday in a note to clients.
“Solar and wind now present a deflationary opportunity for electric supply costs,” the analysts said, which “supports the case for economic deployment of renewables across the US.”
Gas prices have surged amid a global supply crunch after Russia’s invasion of Ukraine, while tax-credit extensions and sweeping US climate legislation have brought down the cost of wind and solar. Renewables-heavy utilities like NextEra Energy Inc. and Allete Inc. stand to benefit, and companies that can boost spending on wind and solar will also see faster growth, Guggenheim said.
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And for the first time ever, the combination of just wind and solar produce more electricity in April than the nation’s nuclear power plants — 17.96% more.
This is according to a SUN DAY Campaign analysis of data in EIA’s Electric Power Monthly report. The report also reveals that during the first third of this year, solar (including residential) expanded by 28.93%, while wind increased by 24.25%. Combined,…
