Lazard Analysis: Solar Power is Cheapest New Electricity Source in 2026
1 report, 1 independent
Updated Sep 23
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What happened
Lazard released an analysis showing utility-scale solar is the cheapest new-build electricity source among solar, coal, and combined-cycle natural gas in 2026. The firm estimated solar's unsubsidized levelized cost of energy (LCOE) to be $40–$98/MWh, compared to $51–$129/MWh for combined-cycle gas and $72–$177/MWh for coal.
From greentechlead.com
Why it matters
The cost comparison is relevant as electricity demand is accelerating due to AI data centers and industrial electrification. While solar holds a cost advantage, the analysis notes that factors like batteries, grid connections, and the low marginal cost of existing thermal plants complicate the overall comparison.
From greentechlead.com
Who's involved
- LazardConducted the Levelized Cost of Energy analysis
- Peter R. OrszagChairman and CEO of Lazard
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The entities involved
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Lazard
Global Financial advisory and asset management firm