Utility-Scale Solar Costs Rise 18% but Remain Cheapest Power Source

Utility-Scale Solar Costs Rise 18% but Remain Cheapest Power Source By Alex Kimani - Jul 13, 2026, 10:00 AM CDT Utility-scale solar costs rose 18% but remain the cheapest new-build generation technology, according to Lazard. Combined-cycle gas plant costs have climbed to their highest level in 15 years due to equipment shortages, inflation, and financing costs. Growing electricity demand from AI data centers and electrification is prompting utilities to continue investing in new gas-fired generation.