DOE Officially Marks SunShot’s $1 Per Watt Goal For Utility-Scale Solar
By Julia Pyper for GTM - It's official. The solar industry has met the 2020 utility-scale solar cost target set by the Energy Department's SunShot Initiative -- three years early. The DOE's National Renewable Energy Laboratory (NREL) released new research today that shows the average price of utility-scale solar is now under $1 per watt and below 6 cents per kilowatt-hour. That’s higher than the record-breaking project bids we’ve seen in the U.S. and abroad in recent years. But that’s because DOE calculations for levelized cost of energy (LCOE) do not include subsidies -- such as the federal Investment Tax Credit -- and are based on the average climate in Kansas City, Missouri. (Note: GTM documented the sub-$1 per watt milestone earlier this year, but the department is using its own metrics.) “Our mission is to make solar affordable for all Americans, and so our goals are defined for average U.S. climates. We use Kansas City as that example,” said Becca Jones-Albertus, acting deputy director of the SunShot Initiative. “Hitting a 6 cents per kilowatt-hour target for Kansas is a more significant metric than hitting 6 cents in sunnier parts of the country.” GTM Research reported that U.S. utility-scale fixed-tilt system pricing fell below $1.00 per watt earlier this year using a different methodology.