NREL: US solar costs rise across all sectors, utility-scale up 6%

December 1, 2022
Facebook
Twitter
LinkedIn
Reddit
Email
The NREL report added an alternative, theoretical pricing model to mute the impact of market turbulence in Q1 2022. Image: Edify Energy.

PV and solar-plus-storage costs have risen year-on-year (YoY) in the US, according to the annual price benchmarking analysis by the National Renewable Energy Laboratory (NREL).

Using 2021 prices, utility-scale PV systems were 6% more expensive in Q1 2022 than the equivalent period last year, rising to US$0.99/Wdc, whilst utility-scale solar-plus-storage systems rose 11% YoY to US$195 million. Standalone energy storage costs rose 13%, as discussed by PV Tech’s sister site, Energy-Storage news.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The analysis assumes a benchmark of 100MWdc for utility-scale solar projects, using monofacial monocrystalline silicon modules with 20.3% efficiency. The solar-plus-storage benchmark adds a 60MWdc/240MWh battery to the standardised PV system.

The figures are based on the NREL’s modelled market price (MMP), which is the actual cost a developer would expect to pay for an installation between Q1 2021 – Q1 2022.

A second model, the minimum sustainable price (MSP) was introduced to minimise the impact of market fluctuations and uncertainties that occurred in Q1 2022, focusing on a sustainable and theoretical long-term price model.

By the MSP’s metrics, a utility-scale PV installation was US$0.87/Wdc, 14% lower than the MMP benchmark. The MSP for solar-plus-storage systems was 15% lower than the MMP, at US$170 million.

Meanwhile, residential and commercial PV systems also saw price rises. Residential PV saw a 2% increase and commercial ground-mounted/rooftop saw 8% compared with Q1 2021 counterparts.

Residential solar-plus storage systems rose 6% YoY, but “a major change in system configuration” between Q1 2021 and Q1 2022 made a comparison on commercial solar-plus-storage unviable, the report said.

NREL acknowledged that, due to the volatility of market events in Q1 2022, the predictions and findings of the benchmark study don’t reflect all market stakeholders. Well-documented supply chain issues in the US like the AD/CVD tariff investigation, as well as the global energy response to the Russian war in Ukraine and the failure of polysilicon supplies to meet demand, contributed to the rise in overall price.

The benchmarking analysis didn’t encompass the introduction of the Inflation Reduction Act in August, which earmarks US$369 billion for decarbonisation efforts.

16 June 2026
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 16-17 June 2026, will be our fifth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2027 and beyond.

Read Next

October 29, 2025
The European Bank for Reconstruction and Development (EBRD) has provided US$142 million in financing for the construction of a 1GW solar and 1.3GWh BESS portfolio in Uzbekistan.
October 29, 2025
NextEra Energy Resources added 3GW of new renewable energy generation and storage capacity to its portfolio in the third quarter of 2025.
October 29, 2025
French firms TotalEnergies and EDF, with local partners, secured contracts for 400MW and 600MW solar projects in Saudi Arabia, supporting Vision 2030 renewable goals.
October 29, 2025
US solar manufacturer Corning has brought online its wafer production at its Michigan plant, during the third quarter of 2025.
October 28, 2025
GreenYellow plans to invest US$116 million in Poland over the next three years to expand its installed capacity and customer base.
October 28, 2025
GoldenPeaks Capital secures EUR114 million (US$132 million) financing package for two solar PV Portfolio in Poland.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
November 12, 2025
10am PST / 1pm EST
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK
Solar Media Events
March 10, 2026
Frankfurt, Germany