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This fact brief was originally published as an experiment to test the concepts behind fact briefs.
Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.
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FACT BRIEF

Is it cheaper to generate electricity from wind or solar sources than from fossil fuels?

By Jacob Alabab-Moser
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YES

Lazard, an investment bank, last year provided estimates for electricity generation costs that factored out the effect of any subsidies. At the lower bounds of its "levelized" estimates, renewable sources had a clear advantage. The cost of wind power ranged from $28 to $54 per megawatt hour and "utility-scale" solar power from $32 to $42/MWh. Estimates for coal-sourced power ranged between $66 and $152/MWh and gas-turbine power at $44–$68/MWh.

In 2019, more than half of new renewable-energy sources generated electricity at a lower cost than coal, as the price of wind and solar has fallen precipitously in the past 10 years. Globally, renewables will meet 80% of global electricity demand growth during the next decade, overtaking coal by 2025 as the primary way to generate electricity, according to the International Renewable Energy Agency.

This fact brief is responsive to conversations such as this one.
Sources
Lazard: Levelized cost of energy and levelized cost of storage, 2019
International Renewable Energy Agency: Renewable power generation costs, 2019
Carbon Tracker: Coal developers risk $600 billion as renewables outcompete worldwide
International Energy Agency: World energy outlook 2020
ABOUT THE CONTRIBUTOR
Gigafact
Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.
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About fact briefs published on Gigafact
Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.