Wholesale solar power generation technology

How much does solar power cost?

The weighted average wholesale price for solar PV-generated electricity was $83 per megawatthour (MWh) in 2019, more than double the price paid to producers for electricity generated by wind, fossil fuels, or nuclear. The higher average wholesale price for solar PV relative to other technologies is partly driven by geography and timing.

What drives wholesale electricity prices?

Wholesale electricity prices are driven by numerous forces, including a growing amount of wind and solar power. Market forces can include generation costs affected by fuel prices (especially natural gas), or high levels of demand driven by hot weather (such as air conditioning), or tight markets where demand is nearly equal to all available supply.

Why are wholesale electricity prices higher?

Wholesale electricity prices are generally higher when electricity demand within an area is greater. Because consumer demand for electricity varies throughout the day, the time of day when generation occurs also influences wholesale prices.

How much does solar PV cost in California?

About one-third of all U.S. solar PV capacity is located in California, where the average wholesale electricity price across all technologies was $74/MWh in 2019, more than double the national average of $36/MWh. The weighted average wholesale solar PV price in California was $100/MWh, or more than 20% higher than the national average for solar PV.

How much does wholesale wind cost?

The average wholesale wind price in these states was $26/MWh compared with $47/MWh for wind generation in all other states. Wholesale wind prices in Texas, Oklahoma, and Kansas tend to be lower because their favorable wind resources lower wind generation costs.

What is a wind and solar pricing tool?

The tool consists of maps, time series, and other interactive figures that provide: (1) a general overview of how average pricing, negative price frequency, and extreme high prices vary over time, and (2) a summary of how pricing patterns are related to wind and solar generation.