Solar, wind, and natural gas dominate U.S. electric grid capacity additions, with solar costs declining in 2021.

Solar, wind and natural gas made up more than 91% of the capacity added to the U.S. electric grid in 2021, according to the Electric Generator Construction Costs and Annual Electric Generator Report by the Energy Information Administration (EIA). While total construction cost for solar approached $20 billion, the average construction costs for solar systems decreased in the US in 2021 compared to 2020. The EIA data shows that solar construction costs fell 6% in 2021 over 2020, dropping to $1,561 per kW. This decrease was driven primarily by a 10% drop in the construction cost of crystalline silicon tracking panels, which fell to $ 1,423 per kW, their lowest average cost since 2014. The report notes that the averageConstruction cost for crystalline Silicon fixed-tilt panels increased by 5% to $2,047 per kW and the average cost for cadmium telluride panels remained relatively stable, decreasing only 1% to$1,626 per kW in 2021. Texas led the way in the southern part of the U., adding 100 new plants for a total of 10,155 MW compared to just 2,347 added in Ohio. Much of today’s investment in solar, which nears $20bn, is going toward large solar facilities, often exceeding 100 MW in capacity.