Between 2022 and 2023, utility-scale solar PV projects showed the most significant decrease (by 12%). For newly commissioned onshore wind projects, the global weighted average LCOE fell by 3% year-on-year; whilst for offshore wind, the cost of electricity of new projects decreased by 7% compared to 2022.
Photovoltaic cost data between 1975 and 2003 has been taken from Nemet (2009), between 2004 and 2009 from Farmer & Lafond (2016), and since 2010 from IRENA. Prices from Nemet (2009) and Farmer & Lafond (2016) have been converted to 2024 US$ using the US GDP deflator, to account for the effects of inflation.
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.
Renewable power generation has become the default source of least-cost new power generation. The progress made in 2023 is a significant step toward transitioning to a system based on energy efficiency and renewable technologies.
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