Cost Comparison: Renewables vs. Fossil Fuels

• Solar & Wind: The levelized cost of energy (LCOE) — which averages the total cost of building and operating a power source over its lifetime — has dropped dramatically for renewables.

  • Solar PV: Has dropped ~90% in the last decade.

  • Onshore wind: Has dropped ~70%.

  • In many cases, they’re now cheaper than new coal, gas, or nuclear plants.

• Fossil Fuels:

  • While natural gas is still competitive in some areas, its costs are more volatile due to global markets.

  • Coal and oil are generally more expensive when all costs are factored in.

    
    

    • Fuel Costs: Renewables don’t need fuel — the sun and wind are free. Fossil fuels have ongoing fuel expenses.

    • Maintenance: Solar and wind farms have fewer moving parts and lower maintenance than coal or gas plants.

    • Externalities: Fossil fuels cause pollution and carbon emissions, which carry health and environmental costs (not always reflected in price but real nonetheless).

      • In 2023, the International Renewable Energy Agency (IRENA) reported that 68% of new renewable capacity installed had lower costs than the cheapest fossil fuel options.

      • Big utilities and companies are switching to solar and wind because of lower long-term costs and price stability.