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Utility-Scale Solar Costs Rose 18 Percent Yet Stay Below New Gas Plants
Lazard released its Levelized Cost of Energy+ analysis on July 13, 2026. Unsubsidized utility-scale solar LCOE increased to $40-$98/MWh yet stayed below other new-build options. Combined-cycle gas plants reached a 15-year high at $48-$107/MWh.
Jul 13, 11:00 AM·1m read2 sources
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Lazard released its Levelized Cost of Energy+ analysis on July 13, 2026. OilPrice.com reported that the unsubsidized levelized cost of energy for utility-scale solar rose 18 percent to a range of $40 to $98 per megawatt-hour. The prior-year range stood at $38 to $92 per megawatt-hour.
Utility-scale solar remains the cheapest new-build generation technology even after the increase, according to the analysis. Onshore wind LCOE registered $37 to $99 per megawatt-hour. Newly built combined-cycle gas turbine plants reached a 15-year high at $48 to $107 per megawatt-hour.
OilPrice.com reported that higher capital costs, interest rates, tariffs, and supply-chain pressures drove the solar increase. Tariffs on imported solar panels, batteries, and inverters from Asia raised import costs. The cost of silver used in solar cells and modules has risen sharply.
Turbine supply-chain bottlenecks, inflation, and long equipment delivery times pushed combined-cycle gas turbine costs higher. High engineering, procurement, and construction costs along with elevated interest rates affected all thermal generation. com reported.
