Construction costs decreased for several types of new power plants on average in 2021, according to federal data. The Energy Information Administration reports that compared to 2020, average construction costs for natural gas-fired generators fell by 18% in 2021, with average construction costs for solar and wind systems declining by 6% and 5% respectively.
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| Source: U.S. EIA |
Average U.S. solar project construction costs in 2021 were $1,561 per kilowatt. Crystalline silicon tracking systems, which accounted for 56% of the nation's utility-scale solar capacity installed in 2021, had a slightly lower per-unit cost, at $1,423 per kilowatt.
Average onshore wind turbine construction costs were slightly lower, at $1,428 per kilowatt. In general, larger projects tended to have smaller per-unit construction costs, implying efficiency due to economies of scale.
Natural gas provided the lowest average construction cost per unit of installed capacity, at $920 per kW. Within natural gas units, combustion turbines had the lowest average cost per unit of capacity, at $512 per kW.
According to EIA, solar, wind, and natural gas collectively account for over 91% of the electric generating capacity added to the U.S. grid in 2021.
