{
  "title": "Falling Costs Make Wind, Solar More Affordable",
  "publication": "IMF Blog, April 26, 2019",
  "sourceUrl": "https://www.imf.org/en/blogs/articles/2019/04/26/falling-costs-make-wind-solar-more-affordable",
  "canonical": "https://www.imf.org/en/blogs/articles/2019/04/26/falling-costs-make-wind-solar-more-affordable",
  "overlayPath": "/en/blogs/articles/2019/04/26/falling-costs-make-wind-solar-more-affordable/index.md",
  "summary": "Solar panels saw a price decline of 76 percent between 2009 and 2017.",
  "sections": [
    {
      "heading": "Key findings",
      "content": "- Solar panels saw a price decline of 76 percent between 2009 and 2017.\n- Onshore wind turbines saw a price decline of 34 percent between 2009 and 2017.\n- Nuclear costs rose 21 percent between 2009 and 2017.\n- Hydropower costs rose 9 percent between 2009 and 2017.\n- In 2017, more was invested in solar than in all other low-carbon technologies combined.\n- Hydropower attracted the most investment in renewable energy up to 2008.\n- Wind turbines took the lead in investment in 2009.\n- Solar panels became the dominant investment choice by 2016."
    },
    {
      "heading": "Methods and metrics",
      "content": "- The analysis is based on the levelized cost of electricity, a method of calculating the cost per unit of power needed to recover the investment in building and operating different generating technologies."
    },
    {
      "heading": "Drivers of cost declines for wind and solar",
      "content": "- Research and development in solar and wind technologies.\n- Standardization of components and processes.\n- Economies of scale in manufacturing.\n- Increasing efficiency of solar panels and larger wind turbines."
    },
    {
      "heading": "Reasons nuclear and hydropower costs rose",
      "content": "- Nuclear and hydro are described as mature technologies requiring large investment in structures with low standardization.\n- These projects resemble large-scale civil engineering projects (bridges, railroads), which tend to limit potential for cost reduction."
    },
    {
      "heading": "Investment trends and implications",
      "content": "- Global investment in renewable energy capacity accelerated in the past decade as wind and solar emerged as cost-effective power sources.\n- The rapid cost declines have made wind and solar competitive alternatives to fossil fuels and to more traditional low-carbon sources such as hydropower and nuclear.\n- The experience with wind and solar technologies suggests a possible similar cost-reduction path for electric batteries if production achieves standardization and economies of scale."
    },
    {
      "heading": "Context about the publication",
      "content": "- Author: Christian Bogmans\n- Date: April 26, 2019\n- Publication: IMFBlog (Chart of the Week, Regional economics)\n\nSource: Falling Costs Make Wind, Solar More Affordable (IMFBlog, April 26, 2019) by Christian Bogmans. The IMF is an organization of 191 countries, based in Washington D.C.\n\n---\n\n\n References\n\n- https://www.imf.org/wp-content/uploads/2019/04/eng-april-4-cotw-solar-1.png\n- electric batteries\n\nSource: https://www.imf.org/en/blogs/articles/2019/04/26/falling-costs-make-wind-solar-more-affordable"
    }
  ],
  "bullets": [
    "[Markdown version](/en/blogs/articles/2019/04/26/falling-costs-make-wind-solar-more-affordable/index.md)",
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    "Authors: Christian Bogmans",
    "Published: April 26, 2019",
    "Solar panels saw a price decline of 76 percent between 2009 and 2017.",
    "Onshore wind turbines saw a price decline of 34 percent between 2009 and 2017.",
    "Nuclear costs rose 21 percent between 2009 and 2017.",
    "Hydropower costs rose 9 percent between 2009 and 2017.",
    "In 2017, more was invested in solar than in all other low-carbon technologies combined.",
    "Hydropower attracted the most investment in renewable energy up to 2008.",
    "Wind turbines took the lead in investment in 2009.",
    "Solar panels became the dominant investment choice by 2016.",
    "The analysis is based on the levelized cost of electricity, a method of calculating the cost per unit of power needed to recover the investment in building and operating different generating technologies.",
    "Research and development in solar and wind technologies.",
    "Standardization of components and processes.",
    "Economies of scale in manufacturing.",
    "Increasing efficiency of solar panels and larger wind turbines.",
    "Nuclear and hydro are described as mature technologies requiring large investment in structures with low standardization.",
    "These projects resemble large-scale civil engineering projects (bridges, railroads), which tend to limit potential for cost reduction.",
    "Global investment in renewable energy capacity accelerated in the past decade as wind and solar emerged as cost-effective power sources.",
    "The rapid cost declines have made wind and solar competitive alternatives to fossil fuels and to more traditional low-carbon sources such as hydropower and nuclear.",
    "The experience with wind and solar technologies suggests a possible similar cost-reduction path for electric batteries if production achieves standardization and economies of scale.",
    "Author: Christian Bogmans",
    "Date: April 26, 2019",
    "Publication: IMFBlog (Chart of the Week, Regional economics)",
    "[https://www.imf.org/wp-content/uploads/2019/04/eng-april-4-cotw-solar-1.png](https://www.imf.org/wp-content/uploads/2019/04/eng-april-4-cotw-solar-1.png)",
    "[electric batteries](https://blogs.imf.org/2018/08/13/chart-of-the-week-a-bumpy-road-ahead-for-electric-cars/)"
  ],
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  "generatedAtUtc": "2026-08-27T18:04:48.492Z"
}