Construction costs for wind, solar power systems declined in 2016
The average annual construction costs for solar photovoltaic systems and onshore wind turbines in 2016 continued to decline, while construction costs for natural gas generators increased, according to the latest data from the Energy Information Administration.
Since EIA began collecting this data in 2013, the cost of construction for solar photovoltaic (PV) projects has steadily decreased. Average construction costs were $2,436 per kilowatt (kW) in 2016, down from $3,705/kW in 2013. It was the second-most common technology installed in 2016, after wind turbines.
Crystalline silicon solar PV systems with tracking were the most-added solar technology in 2016, and the least expensive, at $2,243/kW.
The construction costs for onshore wind generators was $1,630/kW in 2016, a slight decrease from 2015. Further, utilities added 84 wind turbine projects, totaling 8.8 GW, to the electric grid in 2016. Most new wind capacity added in the past three years has been at larger plants. As the capacity added at a site increases, the construction cost decreases.
Also, the construction costs for natural gas facilities averaged $895/kW, an increase from $812/kW in 2015. Roughly 3.6 GW were combustion turbines, which are the least expensive natural gas generating technology. In 2016 the amount of combustion turbine capacity added was twice what it was in 2015.
