The latest report of the International Renewable Energy Agency finds in the global average level of electricity for the year at utilities at the utilities on an annual basis, while the global average total installed costs of solar projects on utility scale fell by 11%.
The globalized weighted average level of electricity (LCO) Solar plants on Utility scale amounted to $ 0.043/kWh in 2024, according to the Final report of the International Office for Renewable Energy (Irena).
The result is an increase of 0.6% on an annual basis, compared to a 12% decrease in the global weighted solar LCOe between 2022 and 2023. It means that solar photovoltaïschens remain the second most affordable source of new power generation worldwide, behind onshore wind in 2024.
Solar projects on the utility scale in China and India saw the lowest solar LCs last year, for $ 0.33/kWh and $ 0.38/kWh. In the US, the solar -lcoe was $ 0.070/kWh in 2024.
There was a more remarkable change in the global weighted average total installed costs (TIC) of solar projects on Nuts scale in 2024, with $ 691/KW for a decrease of 11% on an annual basis and a decrease of 87% compared to 2010.
Irena says that the cost reductions of module and inverter have been a major motivation for reducing solar tics on utility scale, accounting for 60% of the decrease between 2010 and 2024. Installation costs, including development and engineering, purchasing and construction costs, contributed to another 30% of the Tic reduction since 2010.
The lowest weighted average tic for imposed solar projects in 2024 was in India, at $ 525/kW, for a decrease of 28% on an annual basis, followed by China, where average solar edges reached $ 591/kW. In the US, the average tic for solar projects on behalf of $ 1,058/kW reached for a fall of 7% on an annual basis.
The average solar tic throughout Europe was $ 779/MWh in 2024, compared to $ 1,093/MWh in Africa and $ 1,133/MWh in Asian countries excluding China and India. Irena says that regional differences are powered by differences in the term of local supply chains, allowing requirements and labor costs.
The latest report from Irena also reveals that Photovoltaic solar energy was on average 41% cheaper than the cheapest alternatives for fossil fuels last year. Based on LCOE, 91% of all new ones were commissioned, utility scale on renewable capacity at lower costs than the cheapest new alternative on fossil fuels in 2024, with renewable energy sources that avoid $ 467 billion in fossil fuel costs last year.
Although the cost reductions of renewable energy sources are expected to continue, the Irena report also warns that challenges, including geopolitical shifts, trade rates, Bottlenecks of raw material and evolving production dynamics, Can temporarily increase the costs.
It adds that higher costs will probably continue to exist In Europe and North America, due to the allowance of delays, limited schedule capacity and higher balance of system costs. Asia, Africa and South America, on the other hand, it is expected that more pronounced costs will fall, thanks to stronger learning percentages and a highly renewable potential.
“To protect the profit of the energy transition, we must strengthen international cooperation, protect open and resilient supply chains and create stable policy and investment frameworks-especially in Global South,” said Irena director-general Francesco La Camera. “The transition to renewable energy sources is irreversible, but the pace and honesty depend on the choices we make today.”
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