Renewable Energy Beats Fossil Fuels On Speed-To-Power (Shocker!)

A new report from the investment firm Lazard finds that wind and solar power, paired with battery storage, remain the cheapest new electricity to build in the US, even as costs rise across the board. Lazard measures this using a standard called levelized cost of energy, which compares the lifetime cost of different ways of generating power. The firm points to higher equipment costs, interest rates, and tariffs as pressures pushing up prices for every type of generation, but says wind and solar still come out ahead, largely because they can be built faster than the alternatives at a time when electricity demand is climbing quickly.

Natural gas power plants, meanwhile, are getting more expensive to build, with new gas plants now costing more than at any point in 15 years, and long waits for equipment are pushing project timelines out further. Lazard also notes that gas and coal plants carry their own reliability risks, tied to fuel supply and pipeline problems, that often get overlooked in comparisons with renewables.

None of this changes federal energy policy directly, and it does not create any new rebate or incentive for homeowners. But it is a sign that the economics favoring rooftop solar, home battery systems, and grid-supplied renewable power are not going away, regardless of the political mood in Washington. For anyone weighing a solar or battery investment, it is one more data point suggesting the cost trend still points in that direction.