According to the U.S. Energy Information Administration (EIA), construction costs for solar photovoltaic systems and wind turbines in the U.S. rose slightly in 2022. In contrast, costs for natural gas-fired electricity generators dropped significantly by 11%.
Specifically, the average construction costs for solar generators increased by 1.7%, reaching $1,588 per kilowatt (kW). This rise was mainly due to a 13% increase in costs for crystalline silicon tracking panels, which are now priced at $1,605 per kW—the highest since 2018. On the other hand, the average cost for crystalline silicon fixed-tilt panels decreased by 13% but still remained the most expensive at $1,788 per kW. Meanwhile, the cost for Cadmium telluride panels dropped by about 6% to $1,529 per kW.
For wind energy, average construction costs for U.S. onshore wind turbines rose by 1.6%, bringing the total to $1,451 per kW. This increase was driven by higher costs for larger wind farms. Wind farms with a capacity between 100 and 200 megawatts (MW) saw costs jump by 10% to $1,614 per kW. The largest wind farms, those over 200 MW, had an average construction cost of $1,402 per kW, up 1.4%. However, costs for smaller wind farms, between 1 MW and 100 MW, decreased by an average of 7.3% to $1,806 per kW.
Investment in new electric-generating capacity overall declined by 27% from 2021, totaling $36.9 billion in 2022. The EIA noted that solar, wind, and natural gas technologies accounted for 86% of the capacity added to the U.S. electric grid last year.
Natural gas-fired generators experienced a notable cost reduction. The average construction cost fell by 11% from 2021 to 2022, primarily due to a 42% decrease in costs for combined-cycle facilities, which now average $722 per kW. However, costs for other natural gas technologies rose. The average cost for combustion turbines nearly doubled to $1,006 per kW, while internal combustion engines powered by natural gas increased by 27% to $1,677 per kW.
Overall, the 2022 data reflects a complex landscape for U.S. energy construction costs, highlighting both increases and decreases across different technologies.
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