Utility-Scale Solar: The Path to High-Value, Cost-Competitive Projects Breakdown of solar construction costs Project design decisions that impact the levelized cost of energy Capacity factor impacts on price Download Now Utility-Scale PV Heats Up Industry news around low cost utility-scale solar has touted prices below $40/MWh in multiple jurisdictions. While eye-catching, the reality is that utility-scale solar photovoltaic (PV) project economics vary widely and are dependent on a host of drivers. As utilities consider adding solar to their resource mix, understanding these drivers and their implications is necessary for securing high-value, cost-competitive projects. This report will enable utilities to: (1) understand solar cost drivers; (2) recognize the value of solar in their resource mix; and, (3) establish a framework to evaluate solar projects. What’s in the Report? Project size, location, financing, ongoing operations and maintenance (O&M) costs, and system design decisions all factor together to convert project costs into a levelized cost of energy (LCOE). This report provides context behind the key drivers, including: Hard and soft costs and their associated contribution to project costs Added solar productivity from single-axis trackers Solar economies of scale Implications of system orientation on production LCOE potential by capacity factor Impact of project financing on LCOE
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