Solar Electricity is Cheaper Than Fossil Fuels?
Even Without Tax Credits
A new analysis confirms something many in the clean energy space have seen coming for years: solar is no longer just competitive, it’s often the lowest-cost way to generate electricity. Even without federal tax credits, the cost of utility-scale solar power has fallen below the cheapest fossil fuel options.
According to research highlighted by pv magazine USA, the levelized cost of electricity (LCOE) for solar energy in the U.S. has dropped to about $40 per megawatt-hour on average. In some regions, it is even lower. For comparison, the lowest-cost fossil fuel resource, combined-cycle gas, comes in around $60 per megawatt-hour before factoring in any price volatility or fuel costs.
This means solar is now the most affordable energy resource across much of the country. And that’s before you add in the federal Investment Tax Credit (ITC), which still covers 30% of installation costs for homeowners and businesses.
Why This Matters for Midwest Energy Costs
Here in Missouri, Illinois, and Kansas, utility rates have continued to climb. Rising fuel and infrastructure costs are pushing electricity bills higher every year. Meanwhile, solar installations have only gotten more efficient and less expensive.
When you install solar on your home or business, you lock in predictable, stable pricing for decades. You also avoid the ups and downs of fossil fuel markets. And because the technology continues to improve, modern solar systems last longer and produce more power than systems built just a few years ago.
No Longer Just a 'Green' Option - It's Now Simply the Smartest
For a long time, solar was seen mainly as a clean energy alternative. Today, it is often the most practical economic choice, too. Between falling equipment costs, longer product warranties, and the advantage of net metering, solar delivers a combination of savings and energy independence that fossil fuels can’t match.
At ARC, we see this firsthand in the projects we build. Whether it’s a residential system in Illinois or a commercial installation in Kansas, solar is helping our customers take control of their costs and reduce their exposure to rising rates.
Learn More About Going Solar
If you are considering solar for your home or business, there has never been a better time to explore your options. The technology is proven, the economics are strong, and incentives are still available.
Get in touch to see how solar can help you lower your costs and power your future.