Solar to be price competitive in western US by 2025: NREL

August 27, 2013
Facebook
Twitter
LinkedIn
Reddit
Email

Solar and wind power could be price competitive with gas-fired plants in the west of the US by 2025, according to a new study by the National Renewable Energy Laboratory (NREL).

According to the research, Californian solar and wind in Wyoming will generate cheaper electricity than gas in 2025, the year when state-wide Renewable Portfolio Standards (RPS) expire.

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 electric generation portfolio of the future could be both cost effective and diverse,” said David Hurlbut senior analyst at the NREL and the report’s lead author. “If renewables and natural gas cost about the same per kilowatt hour delivered, then value to customers becomes a matter of finding the right mix.

“Renewable energy development, to date, has mostly been in response to state mandates. What this study does is look at where the most cost-effective yet untapped resources are likely to be when the last of these mandates culminates in 2025, and what it might cost to connect them to the best-matched population centres.”

The study concludes that the end of the RPS will drive renewable energy development into the most fertile areas. It predicts that areas with direct normal insolation of 7.5 kWh per metre squared a day will receive the most attention. Germany averages around 3kWh per metre squared a day.

Solar power from Nevada and Arizona will be slightly more expensive than gas power with the cost of transmission edging it higher. These same transmission costs are likely to limit the development of utility-scale solar to the local three-state market comprised of California, Nevada and Arizona, rather than for export further afield.

Read Next

Premium
October 28, 2025
BESS are 'the new player that everyone is talking about,' in Europe’s power purchase agreement (PPA) space, according to LevelTen.
October 28, 2025
GoldenPeaks Capital secures EUR114 million (US$132 million) financing package for two solar PV Portfolio in Poland.
October 28, 2025
Navigating module procurement in this financial environment will be a key topic of conversation at the PV ModuleTech Europe 2025 event.
October 28, 2025
PV projects operate close to technical and financial limits, meaning that inaccurate inputs can have performance and profitability impacts.
October 28, 2025
Chinese solar inverter producer GoodWe has launched a new “low noise, low weight” string inverter for the European corporate & industrial solar market.
October 28, 2025
Fotowatio Renewable Ventures (FRV) Australia has announced the development of a 210MWdc solar project in New Zealand's Rangitikei District.

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