Falling costs drive green energy — even as political tides shift

Energy & Environment

The Big Story

Falling costs drive green energy — even as political tides shift

The U.S. is barreling toward an energy transition as renewables — especially solar — become ever-cheaper sources of energy.

Renewables and natural gas have been gaining while coal has declined for years, but the trends have accelerated since the Inflation Reduction Act (IRA), Democrats’ climate, tax and health care bill, passed in 2022 with massive subsidies for renewables.

In 2023, renewables accounted for more than 20 percent of the electricity generated in the U.S., roughly double their 2010 share, according to the Energy Information Administration. Natural gas, meanwhile, contributed about 43 percent, up from 24 percent in 2010.

And both solar and gas power are expected to grow more in the years ahead.

“The power sector is, year on year, adding a lot more renewables, and in particular solar. Solar is getting cheaper and its adoption is scaling,” said Thomas Rowlands-Rees, head of North America Research at BloombergNEF.

Massachusetts Institute of Technology Professor Christopher Knittel agreed that the low cost of solar will be “driving a lot of adoption, because it’s just a cheap source of electricity.”

The unsubsidized cost of solar power dropped almost 85 percent between 2010 and 2023, according to the Environmental Protection Agency. Solar’s economics are now being bolstered by the IRA, whose generous tax credits for low-carbon power sources are being eyed for potential cuts by Republicans.

Read more at TheHill.com.

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