Wind solar and storage prices lowered

Why are solar equipment costs down 2% compared to 2022?

Compared to the end of 2022, equipment costs for fixed-axis solar are down 2% due to lower polysilicon prices, while lower lithium carbonate prices have reduced battery storage equipment costs by 1%. Meanwhile, BNEF analysis shows that equipment costs for onshore wind farms are 3% higher, while offshore wind farms are 1% higher on average.

Why are wind power & battery energy storage costs falling?

London and New York, June 7, 2023 – The costs of wind power and battery energy storage projects have come down from levels seen in 2022, at the height of global supply chain constraints and the impacts of the Ukraine war.

What is the cheapest energy cost for offshore wind?

BNEF’s analysis shows that the global benchmark levelized cost of electricity, or LCOE, for offshore wind is now on par with coal, the cheapest since BNEF started capturing project data in 2009, driven by a strong China market.

How has financing cost impacted new wind projects?

Financing costs have risen and offset some of the gains from lower equipment costs. The weighted average cost of capital (WACC) for new wind projects is 6.4%, almost 50 basis points higher than last year and puts financing costs back to where they were in 2017.

Will solar cost reductions continue in 2023?

The LCOEs of utility-scale solar, onshore and offshore wind have fallen by 58-74% over the decade to 2023, and BNEF expects these cost reductions to continue in the long run thanks to continuing technology improvements, greater economies of scale and reduced financing costs.

Will China's overcapacity stall electricity cost declines by 2035?

Image: BNEF China’s overcapacity has led countries to consider trade barriers, which could temporarily stall cost declines, but BNEF still expects that by 2035 the global benchmark levelised cost of electricity (LCOE) will fall 26% for onshore wind, 22% for offshore wind, 31% for fixed-axis PV, and almost 50% for battery storage by 2035.