According to Lazard's Levelized Cost of Energy+ analysis, unsubsidized utility-scale solar expenses rose 18% to a range of $40–$98 per megawatt-hour, driven by mounting capital costs, elevated interest rates, import tariffs, and broader supply chain disruptions. The cost inflation reflects structural headwinds facing renewable energy infrastructure deployment across U.S. markets and globally.
Despite the significant cost increase, solar remains the cheapest new-build generation technology available worldwide, maintaining its competitive advantage even when accounting for auxiliary firming expenses required to address solar's intermittent output. Tariffs on solar panels, batteries, and inverters—particularly those sourced from Asia—have directly contributed to rising import expenses, adding to project development costs.
The analysis underscores a critical inflection point for the renewable energy transition: while near-term cost pressures are mounting, solar's fundamental economic advantage over conventional and alternative power generation technologies persists, positioning it as the preferred option for new capacity additions despite current market headwinds.