Renewables remain cheapest, but their LCOE is rising: Lazard

A new report from the financial firm Lazard looks at the cost of building and running different types of power plants over their lifetime, a measure called levelized cost of electricity, or LCOE. The finding: costs are rising across the board, driven by higher borrowing costs, tariffs, and pricier equipment. But solar and wind still come out cheaper than new gas or nuclear plants.

Utility-scale solar costs between $40 and $98 per megawatt-hour, and onshore wind between $37 and $99, according to the report. That compares with $51 to $129 for gas plants built to run often, and $175 to $255 for nuclear. Federal tax credits can push solar's low end down to $16. The gap between the cheapest and priciest wind and solar projects is widening, which the report says reflects some developers handling rising costs better than others.

This is mostly a utility-scale story about power plants feeding the grid, not home equipment. But it matters indirectly: if your electricity comes from a utility, the mix of power plants it builds affects your rates over time. The report also notes that battery storage costs went up this year, partly because tariffs have limited access to cheap imported batteries, which could matter if you're considering home battery storage down the line. None of this changes what federal or state rebate programs offer homeowners for insulation, heat pumps, or other upgrades.