How much does solar power cost?

Real-time prices can spike all the way up to $5/kWh based on supply and demand in the energy market. That means that the solar power you send back to the grid can be very valuable when there’s high demand for power. You can read more about energy markets and prices here.

Does commercial solar cost a lot?

The solar price for commercial projects varies based on system size, location, energy needs, and available incentives. Unlike residential solar, commercial solar pricing benefits from economies of scale, resulting in a lower levelized cost of electricity (LCOE).

How is solar price measured?

The solar price for utility-scale projects is measured using LCOE, which typically has the lowest LCOE among all solar PV sectors. As solar prices continue to decline, utility solar PV plays a key role in the global energy transition, supporting large-scale renewable energy adoption.

What is NREL's solar-plus-storage cost benchmarking work?

This work has grown to include cost models for solar-plus-storage systems. NREL's PV cost benchmarking work uses a bottom-up approach. First, analysts create a set of steps required for system installation.

How much is solar energy worth in 2023?

Solar’s average energy and capacity value (i.e., ability to offset costs of other power generation sources) across the U.S. was $45/MWh in 2023. Solar’s average market value was lowest in CAISO ($27/MWh), the market with the greatest solar generation share, and highest in ERCOT ($67/MWh).

How does solar buyback work?

This is what’s known as solar buyback. Since real-time prices are published by ERCOT in 15-minute intervals, your solar will earn a credit equivalent to how much you sold back multiplied by what the price was during those 15 minutes.