India Sees 91% Drop in Utility-Scale Solar LCOE Since 2010: IRENA

Renewables remained among the most cost-competitive sources of new electricity generation in 2024, measured by the levelised cost of electricity (LCOE), according to the latest report from the International Renewable Energy Agency (IRENA). The report, which analysed cost trends between 2010 and 2024, found that utility-scale renewable power costs fell significantly, with reductions ranging from 81% in the United States to 91% in India.

IRENA noted that 91% of all utility-scale renewable capacity commissioned in 2024 delivered electricity at a lower cost than the cheapest new fossil fuel-based alternative. China, the United States, and India emerged as the top three markets for new utility-scale renewable energy additions, with China alone accounting for approximately 64% of global installations in this category.

The report positioned India as the second most competitive LCOE market in  2024, at USD 0.038/kWh. This represented a 10% year-on-year decline and a 91% decrease between 2010 and 2024. Elsewhere, costs in Greece decreased 5%, to USD 0.044/kWh. Globally, IRENA found that Eurasia had the highest regional LCOE reduction between 2015 and 2024, at 74%.

IRENA stated, "This was followed by Africa, with 67%, signifying a drop from USD 0.225/kWh to USD 0.074/kWh. At the country level, the highest total installed cost reduction was in Brazil, which saw a fall of 74%, from USD 0.0180/kWh to USD 0.048/kWh. Between 2015 and 2024, China and India had reductions of 66% and 59%, respectively." The composition of the IRENA renewable costs database largely reflects the deployment of renewable energy technologies over the last 10–15 years. In terms of GW, most projects in the database are in China (1,460 GW), the United States (303 GW), India (202 GW), and Brazil (116 GW). 

Cost trajectories

IRENA report noted, "The LCOE increased slightly for some technologies over 2023: solar PV by 0.6%, onshore wind by 3%, offshore wind by 4%, and bioenergy by 13%. Meanwhile, costs declined for CSP (-46%), geothermal (-16%), and hydropower (-2%)." The report showed that battery storage costs have declined by 93% from 2010 to 2024, falling from USD 2571/kWh to USD 192/kWh. For onshore wind, the price has changed as China (USD 0.029/kWh) and Brazil (USD 0.030/kWh) recorded LCOEs below the global average, reflecting the maturity of these top markets, the report added. The report estimated that over the next five years, global total installed costs are expected to reach approximately USD 388/kW for solar PV, USD 861/kW for onshore wind, and USD 2316/kW for offshore wind. 

The report warned, "While long-term cost reductions are expected from continued technological learning and supply chain maturity, emerging geopolitical risks – notably trade tariffs on renewable components and materials and Chinese manufacturing sector dynamics – could raise costs in the short term. In 2024, renewables helped avoid USD 467 billion in fossil fuel costs, reinforcing their role not only as the lowest-cost source of new power but also as a key driver of energy security, economic stability, and resilience in a volatile global energy landscape." Sharing the broader picture, the report noted, "From 2022 to 2024, total installed costs (TICs) for renewables declined globally, though with marked regional disparities. Solar PV saw the most uniform reductions, with India achieving the lowest cost in 2024, at USD 525/kW