Energy
Utility-scale solar projects now offer the cheapest and most reliable price of power available in Virginia. That means that, in addition to being perfectly safe, benefiting the environment, creating new jobs, and boosting the economy, projects like Loblolly Solar can help keep our power bills down and make Virginia an attractive location for corporations to make new investments.
Each year Lazard, the world’s largest independent investment bank, releases a report on the unsubsidized levelized cost of energy (LCOE), or the cost of energy without any assistance from government subsidies, grants, tax credits, etc. The unsubsidized LCOE allows for an apples to apples comparison of the price of power from different energy sources.
Utility-scale solar power prices have dropped a staggering 90% in the last 10 years thanks to improvements in panel efficiency and the manufacturing processes.
In this graph you can see that the unsubsidized cost of solar has dropped 90% in the last 10 years from an average of $358 per megawatt hour ($/MWh) in 2009 to just $36.50 in 2020.
Unsubsidized Cost of Utility-Scale Solar
Utility-scale solar projects now represent the lowest cost option for new power generation in Virginia, even when accounting for any subsidies — and not accounting for the extensive environmental benefits.
The cost of renewable energy, such as wind and solar, has been driven down by, among other factors, decreasing capital costs, technology improvements, and increased competition.
In this graph you can see the average cost of utility-scale solar at $37/MWh in the bottom right. Solar beats out gas at $59, coal at $112, and nuclear power plants at $163.
Utility-Scale Energy Cost Comparison
It’s not just Lazard… Dominion Energy, too, clearly sees the value in utility-scale solar. In their 2018 Integrated Resources Plan, they list solar as the lowest cost source of power generation, reporting that it is cheaper than more traditional forms of generation thanks to the continuing development of solar photovoltaic technology.
In fact, it’s now cheaper to install a new utility-scale solar farm instead of continuing to operate an existing coal plant. And in some cases, it’s now cheaper to install a new utility-scale solar farm instead of continuing to operate existing nuclear plant. It’s important to note that these cost comparisons do not account for the environmental benefits of utility-scale solar. Once you factor in the environmental benefits of clean energy, solar is far and away the winner!
| Power Generation Source | Cost ($/MWh) |
|---|---|
| Solar | $56.38 |
| 2x1 Combined Cycle (Gas) | $67.72 |
| 1x1 Combined Cycle (Gas) | $78.44 |
| Onshore Wind | $94.10 |
| Combustion Turbine (gas) | $107.05 |
| Offshore Wind | $130.60 |
| Nuclear | $141.52 |
Table Source: Dominion 2018 IRP Figure 5.5.4.3
Stable Price, Clean Future
Besides being a low-cost leader, solar energy offers price certainty that other electricity generators cannot. Sourced directly from the sun, our fuel doesn’t cause pollution and it’s always free. This means solar energy is never subject to fuel price fluctuations or costly new environmental regulations. The same can’t be said of existing fossil-fuel generation sources — whose fuel prices can vary widely and are highly susceptible to new environmental regulations.
“Solar has become so cost-effective and reliable, it’s no wonder the government, utilities, corporations, and nonprofits of Virginia are all-in when it comes to this clean renewable resource!”
Price stability is very attractive to corporations looking to make longterm investments in a state. That’s why many of the largest corporations in the world have recently entered into contracts to purchase electricity generated by utility-solar farms in Virginia, including Microsoft, Facebook, and Amazon. Utility-scale solar has also helped nonprofits including William & Mary, University of Richmond, and the University of Virginia source low-cost, price-stable, clean solar power.
In addition to being perfectly safe, benefiting the environment, and creating new jobs, projects like Loblolly Solar can help keep our power bills down and make Virginia an attractive location for corporations to make new investments.
