According to the International Renewable Energy Agency (IRENA), 91% of newly commissioned utility-scale renewable energy projects in 2024 delivered electricity at a lower cost than the cheapest available fossil fuel alternatives. On a levelized cost of electricity (LCOE) basis — the standard per-kWh metric used to compare generation sources — onshore wind averages approximately $0.034/kWh and solar PV approximately $0.043/kWh, while fossil fuel generation typically ranges from $0.08 to $0.17/kWh. These figures are corroborated by BloombergNEF, Lazard, and Zero Carbon Analytics.
The cost advantage of renewables applies to new capacity. A narrow caveat exists: legacy fossil fuel plants with already-paid-off capital costs (sunk costs) can sometimes operate at lower marginal costs than building new renewable capacity. However, this does not apply to new electricity generation investments, where renewables are consistently the cheaper option across most major economies.
The U.S. Energy Information Administration (EIA) projects a 17% increase in solar generation in 2026 and a further 23% in 2027, reflecting how cost competitiveness is driving rapid renewable deployment. The claim that renewables are more expensive than fossil fuels inverts the actual, well-documented cost relationship.