Renewable vs. Coal Energy Costs: A Comparison
Comparing the financial expenditures associated with generating electricity from renewable sources such as solar, wind, hydro, and geothermal with those associated with coal
The economics of power generation are increasingly favoring renewable energy sources like solar. With diminishing costs and enhanced efficiency, solar power is emerging as a highly competitive alternative to coal.
The complexity and age of coal plants can lead to significant and unpredictable maintenance expenses. A key distinction between renewable and coal-fired power generation lies in fuel costs. Renewable energy sources, such as solar, wind, and hydro, utilize freely available resources, resulting in negligible fuel expenses.
The peer-reviewed study shows solar power produced in Texas is more than triple the cost of nuclear power, more than quadruple the cost of coal power, and more than 10 times the cost of natural gas power. By the full-system numbers, solar power in Texas costs $413 per megawatt hour (mwh) of generation. Wind power costs $291 per mwh.
This updated analysis on coal costs shows that in 2024, coal power was 28 percent more expensive than in 2021, costing consumers $6.2 billion more to generate power via coal than it would have cost in 2021. Coal power is declining across the United States, largely because of these poor economics.
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