The International Energy Agency (IEA) stated in its World Energy Outlook 2024 that solar photovoltaic (PV) is now the cheapest source of new electricity generation in most countries. This cost advantage applies to utility-scale projects, which benefit from economies of scale and technological improvements.
According to the IEA report, the global weighted-average levelized cost of electricity (LCOE) for new utility-scale solar PV projects commissioned in 2023 was significantly lower than that for new coal or natural gas-fired power plants. This cost decline is attributed to sustained policy support, innovation, and economies of scale in manufacturing, particularly in China.
The agency notes that while solar is the lowest-cost option for new capacity, integrating this variable power into electricity grids remains a challenge requiring investment in storage and grid infrastructure. The IEA's findings are a key benchmark for global energy economics, though exact cost figures vary by region and project specifics.
