Skip to content

Thursday, Jun 11, 2026

Does solar energy need subsidies to compete with fossil fuels?

Sue Bin Park, Skeptical Science
no

Unsubsidized utility-scale solar is now generally cheaper than building fossil fuel power plants.

Costs are often compared using “levelized cost of energy,” the average lifetime cost to build and run a power plant divided by the electricity it produces. A 2025 analysis estimates the mean LCOE of utility-scale solar at about $58 per megawatt-hour without subsidies, compared to $79 for new natural gas plants and $128 for new coal. The International Energy Agency reports solar energy is the cheapest source of new electricity generation in most parts of the world.

Solar costs have fallen sharply over the past decade as panel prices have dropped and the industry has grown. Subsidies can further lower costs, but solar is not dependent on them to compete with fossil fuels.

See a full discussion of this at Skeptical Science

This fact brief is responsive to conversations such as this one.

Sources

About fact briefs

Fact briefs are bite-sized, well-sourced explanations that offer clear "yes" or "no" answers to questions, confusions, and unsupported claims circulating online. They rely on publicly available data and documents, often from the original source. Fact briefs are written and published by newsrooms in the Gigafact network.

See all fact briefs

Skeptical Science is a non-profit science education organization. Our goal is to remove a roadblock to climate action by building public resilience against climate misinformation. We achieve this by publishing debunking of climate myths as well as providing resources for educators, communicators, scientists, and the general public. Skeptical Science was founded and is led by John Cook, a Senior Research Fellow with the Melbourne Centre for Behaviour Change at the University of Melbourne.

Learn More

Latest Fact Briefs

Be a Friend of facts

Help us fund more great fact briefs like this one.