U.S. New Power Generation's Lowest Costs Are Solar and Wind... Gas Reaches 15-Year High

Analysis shows that large-scale solar and onshore wind power have the lowest generation costs for new power plants in the U.S., maintaining their price competitiveness despite rising tariffs and financial costs. Lazard's LCOE report reveals that onshore wind's lowest LCOE is $37/MWh ($55,500), while large-scale solar is $40/MWh ($60,000). In contrast, combined-cycle gas power's lowest LCOE is $51/MWh ($76,500), marking a 15-year high. Energy storage systems increase LCOE for solar and wind, but tax credits and incentives lower them to $16/MWh ($24,000) for solar and $11/MWh ($16,500) for wind. Lazard notes rising power demand requires diverse generation infrastructure, but solar and wind remain the fastest, lowest-cost options for new capacity.