IRENA's landmark report found that 91% of utility-scale renewable energy projects commissioned in 2024 undercut the cheapest available fossil fuel alternative on a levelized cost of electricity (LCOE) basis. This metric accounts for the full lifetime cost of building and operating a power plant, divided by the total electricity it generates — making it the standard apples-to-apples comparison used by energy economists worldwide.
The cost advantage is most dramatic for onshore wind, which averages around $0.034/kWh globally, compared to $0.08–$0.17/kWh for typical fossil fuel generation. Solar PV follows closely at approximately $0.043/kWh. These figures are corroborated by BloombergNEF, Lazard, and Zero Carbon Analytics, all of which show renewables as the lowest-cost source for new electricity capacity in most major economies.
A narrow exception exists: legacy fossil fuel plants with fully depreciated capital costs can sometimes operate at lower marginal costs than building new renewable capacity. However, this does not change the broader picture — when comparing new-build costs, renewables now dominate. The EIA projects solar generation will grow 17% in 2026 and a further 23% in 2027, reflecting how decisively the economics have shifted.