Wind and Solar Power Costs 41-53% Lower Than Fossil Fuels in 2024, Reports Indicate

Tahra Hoops, a prominent commentator on energy policy, recently asserted on social media that wind and solar energy are increasingly reducing electricity costs compared to fossil fuels, directly challenging former President Donald Trump's opposing views. This statement aligns with recent analyses from leading financial and energy agencies, which highlight a significant economic shift in the global power sector. New data from 2024 and projections for 2025 consistently show renewable sources achieving lower generation costs.

According to the International Renewable Energy Agency (IRENA)'s "Renewable Power Generation Costs in 2024" report, 91% of all new renewable power projects commissioned last year were more cost-effective than any new fossil fuel alternative. Specifically, utility-scale solar photovoltaic (PV) power had a global weighted average Levelized Cost of Electricity (LCOE) of $0.043/kWh, making it 41% cheaper than the lowest-cost fossil fuels. Onshore wind was even more competitive at $0.034/kWh, representing a 53% cost advantage.

This trend is corroborated by Lazard's 2025 Levelized Cost of Energy+ (LCOE+) report, which identifies unsubsidized wind and solar as the most cost-effective forms of new-build generation. BloombergNEF (BNEF) further projects a 2-11% cost reduction for clean power technologies in 2025, noting that new wind and solar farms are already undercutting new coal and gas plants globally. These declines are attributed to technological innovation, robust supply chains, economies of scale, and significant reductions in battery storage costs, with utility-scale battery energy systems now 93% cheaper than in 2010.

Despite these compelling economic advantages at the asset level, the integration of variable renewable energy sources presents system-level challenges. A February 2025 ScienceDirect review on LCOE highlights that while asset-level costs for renewables are low, the true "system costs"—including grid upgrades, balancing power, and reliability measures—can be substantial and are often socialized across the power system. Permitting delays and limited grid capacity, particularly in North America and Europe, are also flagged as hurdles impacting overall cost-effectiveness and deployment.

The debate over energy costs and policy continues to play out in the political arena, as exemplified by former President Trump's recent actions. His administration's Department of Energy reportedly cancelled a $4.9 billion conditional loan commitment for the Grain Belt Express, a major transmission project intended to connect Kansas wind farms across four states, labeling it a "green scam." This move, despite the project's potential to save customers billions and enhance grid reliability, underscores the political barriers facing renewable energy infrastructure development. UN Secretary-General António Guterres emphasized the need for governments to "unblock barriers, build confidence, and unleash finance and investment" to sustain the momentum of renewables.