The project in question is the Eagle Shadow Mountain Solar Farm, which will begin operating in 2021. The farm will have a generating capacity of 300 megawatts, enough to power about 210,000 American homes. But it’s the price part that’s eye-popping. It will operate at a flat rate of $23.76 per megawatt-hour over the course of a 25-year power purchasing agreement (the term for a contract between an electricity generator and utility who buys it). On the surface, that price may not mean a lot to you if you’re not an energy nerd, but it’s a huge deal.
“On their face, they’re less than a third the price of building a new coal or natural gas power plant,” Ramez Naam, an energy expert and lecturer at Singularity University, told Earther in an email. “In fact, building these plants is cheaper than just operating an existing coal or natural gas plant.”
There’s a 30 percent federal investment tax credit for solar projects that helps drive down the cost of this and other solar projects. But Naam said even if you take away that credit, “these bids, un-subsidized, are still cheaper than any new coal or gas plants, and possibly cheaper than operating existing plants.”