According to a recent study performed by the economists at the Brattle group, utility-scale solar photovoltaic (i.e. solar panel) generation is continuing to become a more competitive and attractive option for new utility investment.

This study was conducted using Xcel Energy Colorado as a test case. By varying parameters such as inflation, tax credits, and capital cost, the Brattle Group came back with results between 6.6 and 11.7 cents per kWh using a model year of 2019.

Costs for solar energy have been falling rapidly in recent times. A similar study conducted by the Energy Information Administration using actual 2014 utility and costing data found that the current cost of utility-scale photovoltaic generation is approximately 13 cents per kWh. For reference, most gas-powered generation hovers around three to four cents per kWh of energy.

With solar costs finally falling, investment into long-term solar projects will likely continue to grow. Right now, electricity rates are somewhat inflated due to a requirement to procure a certain percentage of overall usage from renewable resources, in spite of the additional costs.

Most of these improvements will take place over the next decade or more. In the meantime, improvements in solar mean additional investment costs that will be passed along to the consumer. The customer service team at AGR Group works hard to provide you with current information to help your business. Contact us today!