New Solar Price Record: Tucson Utility Inks Deal For Solar Power That Costs Less Than 3 Cents Per Kilowatt-Hour!
Reports of record-low prices for utility-scale solar power are pouring in from around the world. In Chile, prices dropped below 3 cents per kilowatt-hour last year. But such super low prices have not been part of the energy environment in the US — until now.
On May 22, Tucson Electric Power announced it had signed a 20-year power purchase agreement with NextEra Energy Resources to buy solar power from a new 100-megawatt solar power plant that will be built and operated by NextEra. The completed system will supply enough electricity to run 21,000 homes in the Tucson area. The price? Less than 3 cents per kilowatt-hour.
To put this in a little context before proceeding, the unsubsidized cost of electricity from fossil fuels has a low end of about 4.8 cents per kilowatt-hour in the US. 3 cents per kilowatt-hour crushes that and the only potential source of competition in that range is wind power, but that’s assuming the location has great wind resources. Overall, the point is clear: fossils can’t compete with solar and wind in more and more cases.
New Solar Price Record: Tucson Utility Inks Deal For Solar Power That Costs Less Than 3 Cents Per Kilowatt-Hour!
And the price is still going down.
Reports of record-low prices for utility-scale solar power are pouring in from around the world. In Chile, prices dropped below 3 cents per kilowatt-hour last year. But such super low prices have not been part of the energy environment in the US — until now.
On May 22, Tucson Electric Power announced it had signed a 20-year power purchase agreement with NextEra Energy Resources to buy solar power from a new 100-megawatt solar power plant that will be built and operated by NextEra. The completed system will supply enough electricity to run 21,000 homes in the Tucson area. The price? Less than 3 cents per kilowatt-hour.
To put this in a little context before proceeding, the unsubsidized cost of electricity from fossil fuels has a low end of about 4.8 cents per kilowatt-hour in the US. 3 cents per kilowatt-hour crushes that and the only potential source of competition in that range is wind power, but that’s assuming the location has great wind resources. Overall, the point is clear: fossils can’t compete with solar and wind in more and more cases.
New Solar Price Record: Tucson Utility Inks Deal For Solar Power That Costs Less Than 3 Cents Per Kilowatt-Hour!
And the price is still going down.