The collapse in solar electricity costs
The global weighted-average cost of electricity from new utility-scale solar PV fell from USD 0.460/kWh in 2010 to USD 0.044/kWh in 2023 — a 90% decline. By 2023 solar PV was about 56% cheaper than the average fossil-fuel alternative, having been roughly four times more expensive in 2010.
Source: IRENA — Renewable Power Generation Costs in 2023 (2024)
What it means
A 90% fall in solar's levelised cost in just over a decade is the clearest example of how fast clean-energy economics can shift, and module prices alone fell about 93% over a similar period. For industry the lesson generalises: technologies on a steep cost-decline curve — sensors, batteries, AI inference — become viable far sooner than static planning assumes.
Context
IRENA's annual cost report tracks the levelised cost of electricity, which spreads capital and operating cost over lifetime output. Falling module prices contributed the largest single share — around 45% — of the solar cost decline since 2010, with the rest coming from cheaper balance-of-system, financing and scale. The figures are global weighted averages; costs vary widely by country, so any individual project will differ from the headline.
How to interpret this data
About the source: This data comes from IRENA. Public datasets like this are the foundation of fact-based decision-making in industry. When you see these numbers cited in vendor proposals or consultant reports, remember: the raw data is freely available, and the value is in how you interpret it for your specific plant and situation.
Where this matters: How to reduce industrial energy costs are built on insights like the data shown here. Rather than treat data in isolation, read the deeper guides to see how these trends translate into actionable levers for your plant.
Sector relevance: This dataset is especially relevant to Power Generation, Chemicals. These sectors face the trends and challenges you see in this chart daily — energy cost pressure, the push for decarbonization, adoption of AI and predictive maintenance. Use this data to benchmark your plant against the industry average and identify where you lag or lead.
How to use this data: Take the headline number but look deeper at the chart. Is it growing or shrinking? Which segments or regions drive the trend? Does your plant's data align, or are you an outlier? Outliers are often where the best opportunities hide — either an efficiency gap you can exploit, or a leading practice you can copy.
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Related topics
How to Reduce Industrial Energy Costs: Practical Quick Wins · Net Zero · Carbon Footprint
Relevant to: Power Generation · Chemicals · Food Processing