U.S. Construction Costs Rise Marginally for Wind and Solar, Decline for Natural Gas During 2022: EIA

Average U.S. construction costs for wind turbines and solar photovoltaic systems rose by 1.6 percent and 1.7 percent during 2022, according to an Oct. 22 report published by the U.S. Energy Information Administration. In contrast, average U.S. construction expenditures for natural gas fired power generators declined by 11 percent during 2022.

Natural gas, wind and solar accounted for 86 percent of the production capacity added to the U.S. power grid during 2022. Investment in new power generating assets during 2022 was recorded at $36.9 billion dollars, down 27 percent compared to 2021.

The average building expense for U.S. onshore wind turbines rose by 1.6 percent during 2022 to $1,451 per kilowatt (kW). The increase in costs were due to rises in building costs for wind farms in excess of 100 megawatts (MW) in nameplate capacity. The expenditure for wind farms ranging 100 MW to 200 MW of capacity rose by 10 percent to $1,614/kW. Moreover, the building costs for large wind farms, those with over 200 MW of capacity, also rose by 1.4 percent during 2022 to $1,402/kW. In contrast, building expenditures for wind farms between 1 MW and 100 MW capacity continued to decline during 2022 to $1,806/kW, down by 7.3 percent compared to the previous year.

The average construction cost for U.S. solar across all solar panel types rose by 1.7 percent to $1,588/kW during 2022. The increase in construction cost can be attributed to a 13 percent rise in the construction cost for crystalline silicon tracking panels.

The average building costs for natural gas fired generators declined 11 percent during 2022 compared to 2021. The price decrease can be attributed to a decline in the expenditure for combined cycle assets. The average building expenditure for generators at these facilities declined by 42 percent during 2022 to $722/kW.