The Lazard LCOE version 7 has just been released and it well worth a read.
For those of you who are unfamiliar with the report, it is a very well constructed study that tries to calculate the Levelized Cost of Energy (LCOE) for all major generation types. It is the most useful way to see what it really costs to produce power via different technologies.
And boy is this years a stunner. With the dramatics cost decreases in solar it becomes clear that solar is a better choice than many other technologies TODAY and WITHOUT SUBSIDIES.
Things that Jump Out:
- Rooftop solar at $3.50 per watt is has a much lower LCOE than diesel generation: $204 per mwh versus $332 per mwh
- Rooftop solar at $3.50 per watt has a lower LCOE than gas peaking: $204 per mwh versus $230 per mwh
- Rooftop solar at $3.00 per watt is close to high end coal generation: $149 per mwh versus $145 per mwh
- Utility Scale solar is cheaper than coal in many areas
- Utility Scale Solar is lower today than current generation rate in NYC.
Solar has made extraordinary steps over the last couple of years and has gone from being a real outlier in cost to a contender.