Solar power plant wholesale prices

How much does solar power cost?

The weighted average wholesale price for solar PV-generated electricity was $83 per megawatthour (MWh) in 2019, more than double the price paid to producers for electricity generated by wind, fossil fuels, or nuclear. The higher average wholesale price for solar PV relative to other technologies is partly driven by geography and timing.

What is a solar wholesale price?

Wholesale prices are basically the amount that utilities pay power plants for the electricity they deliver to households and businesses. They shift throughout the day and year, edging back up for solar operators during the mornings, afternoons and other times when there isn’t excess supply.

How much have solar wholesale prices fallen since 2014?

The state’s average solar wholesale prices have fallen 37% relative to the average electricity prices for other sources since 2014, according to the Breakthrough Institute analysis, which will be published on July 14.

How much does wholesale wind cost?

The average wholesale wind price in these states was $26/MWh compared with $47/MWh for wind generation in all other states. Wholesale wind prices in Texas, Oklahoma, and Kansas tend to be lower because their favorable wind resources lower wind generation costs.

How does electricity price change in wholesale markets?

In wholesale markets, the price of electricity changes based on changes in electricity demand, the price of fuels that power plants use to generate electricity, and the availability of the generation fuel sources.

How does a solar plant work compared to a natural gas plant?

Unlike a natural gas plant, solar plant operators can’t easily throttle electricity up and down as needed, or space generation out through the day, night and dark winter. It’s available when it’s available, which is when the sun is shining. And that’s when all the other solar plants are cranking out electricity at maximum levels as well.