Solar LCOE by Country 2026: Cost per kWh and $/MWh Benchmarks

Building the same solar plant in China and in Japan does not cost the same. The gap decides which projects get financed. LCOE, or levelized cost of energy, is the cost of each unit of power over a plant’s life. IRENA is the International Renewable Energy Agency. It publishes a yearly cost report. IRENA’s weighted average for utility-scale solar PV commissioned in 2024 was USD 0.033/kWh in China. It was USD 0.038/kWh in India and USD 0.070/kWh in the United States. The global average was USD 0.043/kWh. A weighted average gives larger projects more weight. Utility-scale means large plants that sell power to the grid. Commissioned means started up. This guide gives the sourced figures by country and region. It explains what drives the differences. It shows how to use a benchmark in a project decision.

Solar LCOE by country at a glance

USD/MWh is USD/kWh multiplied by 1,000, so China’s 0.033 USD/kWh is 33 USD/MWh. A kWh (kilowatt-hour) is the energy a device drawing one kilowatt uses in an hour. A MWh (megawatt-hour) is a thousand kWh. The sections below show where each figure comes from and why you cannot mix them.

What changed in 2026

Three updates matter for anyone reading a country table this year.

• IRENA’s global benchmark: The IRENA Renewable Power Generation Costs in 2025 publication was published in July 2026. It reports global solar PV LCOE at USD 44/MWh. It describes this as unchanged from 2024. The 2024 edition reported USD 43/MWh. The 2025 executive summary gives USD 36/MWh for China, USD 35/MWh for India and USD 65/MWh for Germany. So the 2024 order of China first and India second reversed.
• US costs rose. Lazard’s 2026 LCOE+ (Version 19.0, July 2026) puts unsubsidized US utility-scale solar PV at USD 40–98/MWh. That is up from USD 38–78/MWh in the June 2025 edition. Unsubsidized means without government support. Lazard is a financial advisory firm. It attributes the increase to higher capital costs, sustained interest rates, tariff pass-through and supply chain repricing. Tariff pass-through means import taxes passed on in prices.
• BNEF’s benchmark also rose: pv magazine USA is a solar news site. In reporting Bloomberg NEF’s 2026 LCOE report, it says the 2025 global fixed-axis solar benchmark increased 6% year on year to USD 39/MWh. Fixed-axis solar means panels that stay in one position. Bloomberg NEF (BNEF) is an energy research firm.

The country rows in the table above come from the 2024 group of projects in IRENA’s July 2025 edition. The newer report may revise past figures. So do not join editions into one trend line without checking the revisions.

Which solar LCOE figures are comparable?

Use one report edition and one commissioning year before comparing countries. A utility-scale plant, a residential rooftop and a solar-plus-storage system cover different costs. They also measure energy at different points. An auction price is also a different metric from the cost of generating electricity. It is what a developer bids to sell power.

The IRENA 2025 global figure of USD 44/MWh is an observed benchmark for projects commissioned that year. It is not a quote for a new project or a forecast for 2026.

Global solar LCOE by country: 2024 utility-scale data

The 2024 report supplies the weighted averages below, in 2024 US dollars. The digital report adds context. The 5th to 95th percentile columns show the range for individual projects in each market. A percentile marks the point below which that share of projects fall.

The global average was 0.6% above 2023 and 90% below 2010, when it stood at USD 0.417/kWh. IRENA also charts Japan among 15 major markets, where the 2024 range ran from USD 0.033/kWh in China to USD 0.120/kWh in Japan. Wood Mackenzie is an energy research firm. Its 2025 analysis gives a similar spread for Asia Pacific, from USD 27/MWh in China to USD 118/MWh in Japan.

These are selected country observations, not a complete league table. They are not a residential electricity tariff or a customer’s avoided cost. For a country not shown here, use the original report’s country data or a documented local project dataset. A regional average cannot stand in for a national figure. IRENA’s Europe average, for example, cannot tell you the cost of a specific Spanish, German or Italian project.

Utility-scale solar cost per kWh and per MW by region

IRENA’s Table 3.3 gives the 2024 weighted average utility-scale solar PV LCOE by region. This is the closest sourced answer to the cost of solar per kWh outside the largest markets.

For Latin America, the sourced 2024 figures are Brazil at USD 0.048/kWh. Other South America is at USD 0.063/kWh. Central America and the Caribbean is at USD 0.091/kWh. Brazil’s average fell from USD 0.180/kWh in 2015, a 74% drop.

The cost per MW behind these results is IRENA’s total installed cost (the full price to build the plant), quoted in USD/kW. Multiply by 1,000 for USD/MW.

Global total installed cost for solar PV fell 87% between 2010 and 2024, from USD 5,283/kW to USD 691/kW, in 2024 dollars.

What Is Solar LCOE and Why Does It Matter?

LCOE (levelized cost of energy) converts every cost over a project’s life into one per-kilowatt-hour figure. That makes it the standard metric for comparing generation technologies, countries and system sizes. Project developers, utilities and lenders use it to screen projects. A project whose contracted price falls below its LCOE loses money.

The formula is:

LCOE = [ I₀ + Σ(Cₜ / (1 + r)ᵗ) ] ÷ Σ(Eₜ / (1 + r)ᵗ)

Where:

• I₀ = initial capital expenditure (the upfront cost to build)
• Cₜ = operating costs in year t
• Eₜ = energy generated in year t, in kWh
• r = discount rate (the yearly rate used to turn future money into today’s value)
• t = project year, from 1 to the end of the study life

Six inputs move the result:

Why Solar LCOE Varies So Much by Country

Five factors explain most of the difference between markets.

1. Solar irradiance and capacity factor

Solar irradiance, the sunlight reaching a site, sets the electricity in the denominator (the bottom of the LCOE fraction). Two identical plants with the same capital cost have different LCOE if one site yields twice the annual energy. IRENA’s global weighted average capacity factor for utility-scale solar PV was 17% in 2024. Capacity factor is the share of its maximum output that a plant delivers over a year.

2. Total installed cost and supply chain

Capital cost is the largest part of utility-scale solar LCOE. IRENA puts the 2024 total installed cost at USD 525/kW in India and USD 591/kW in China. In the United States it is USD 1,058/kW. It credits China’s result to vertically integrated supply chains and abundant manufacturing capacity at home. In a vertically integrated chain, one group of firms controls many steps. It notes that China made 277 GW of installations in 2024.

3. Cost of capital

Solar costs a lot upfront (it is capital-intensive), so financing conditions carry through to LCOE. IRENA’s weighted average cost of capital (WACC) assumptions ranged from 3.8% in Europe to 12% in Africa for 2024. They reflect country risk and economy-wide conditions. WACC is the average rate a project pays to borrow and raise money. The IEA Cost of Capital Observatory is from the International Energy Agency (IEA). It shows the same driver in utility-scale solar economics. Its charts have their own reporting periods. They explain a driver of LCOE. They do not replace a country price table.

4. Permitting, grid connection and soft costs

IRENA reports that solar PV LCOE rose in the United States and the European Union in 2024. Permitting delays, interconnection bottlenecks and higher balance-of-system costs held back further cost cuts. Interconnection means linking a plant to the grid. Balance-of-system costs are everything except the panels, such as mounts and wiring. Lazard’s 2026 report likewise calls for faster permitting and approval to contain cost.

5. Labor and local conditions

Installation labor, land, tariffs and local content rules differ by country. Local content rules require some locally made parts. They are part of the capital cost line. They are why a module price alone does not set a country’s LCOE. A lower module price may be offset by other project costs or by lower energy output. The module-price scenario guide shows how to compare equipment quotes without mixing them up with lifetime energy cost.

Solar LCOE in Asia: China, India and Japan

China

China is the cost benchmark. IRENA’s 2024 weighted average is USD 0.033/kWh (5th to 95th percentile USD 0.028 to 0.052), down from USD 0.039 in 2022. Wood Mackenzie’s 2025 analysis puts Chinese utility-scale solar at USD 27/MWh. The two figures differ because they use different methods and years. China’s manufacturing base sets a floor for module prices elsewhere. Any buyer who can source equipment at export prices starts with part of that advantage.

India

India’s 2024 weighted average LCOE was USD 0.038/kWh. That is a 10% year-on-year decline and a 91% decrease from 2010. Its total installed cost was USD 525/kW. IRENA charts five markets in its 2024 trajectory figure (China, the United States, India, Brazil and Germany). Of these, India had the lowest total installed cost. For Indian projects, compare your proposal against this benchmark and against your own site yield. Do not compare it against an average from a different year. Our guide to solar design software for India covers the modeling side.

Japan

Japan is at the other end of the 15 markets IRENA charts, at USD 0.120/kWh in 2024. Wood Mackenzie’s 2025 analysis shows USD 118/MWh. The gap between China and Japan is roughly three and a half times. It shows that market structure, supply chain access and financing matter more than the panels themselves.

Solar LCOE in Europe

IRENA’s Europe region averaged USD 0.060/kWh in 2024 (5th to 95th percentile USD 0.041 to 0.103). This compares with USD 0.049/kWh for Oceania. IRENA’s lowest WACC assumption is for Europe, at 3.8%. So lower financing cost partly offsets weaker sunlight in the north. The range inside Europe is wide. So a European average cannot be applied to one country’s project.

For national detail, use the country guides rather than a regional figure. Start with solar panel prices and ROI in Italy, Germany solar subsidies, Spain net metering and European solar incentives. The installation cost per kWp in Europe guide covers the capital-cost side.

Solar LCOE in the Americas

United States

IRENA’s 2024 weighted average for US utility-scale solar PV was USD 0.070/kWh (5th to 95th percentile USD 0.049 to 0.141). It is the highest of the four major utility-scale markets IRENA tabulates, though 57% lower than in 2015. Total installed cost was USD 1,058/kW. Lazard’s 2026 analysis uses a different method. It puts unsubsidized US utility-scale solar at USD 40–98/MWh. It puts community and C&I (commercial and industrial) solar at USD 88–197/MWh. Lazard’s base case assumes 60% debt (borrowed money) at 8% and 40% equity (the owners’ money) at 12%.

Tax credits do not appear in an unsubsidized LCOE but change project economics. Lazard shows the utility-scale range falling to USD 27–83/MWh with the investment tax credit applied. Read the investment tax credit entry and the IRA solar tax credit guide before using either figure in a proposal. IRA is the US Inflation Reduction Act.

Brazil, Chile and Mexico

Brazil’s 2024 weighted average was USD 0.048/kWh (5th to 95th percentile USD 0.036 to 0.077), down 74% from USD 0.180/kWh in 2015. For other Latin American markets, IRENA’s regional figures are USD 0.063/kWh for Other South America. They are USD 0.091/kWh for Central America and the Caribbean. Mexican PPA prices are a contract metric, not a measured LCOE, as the PPA section below explains. PPA means power purchase agreement.

Solar LCOE in the Middle East and Africa

Wood Mackenzie’s 2025 analysis reports single-axis tracker solar in the Middle East and Africa at USD 37/MWh. A single-axis tracker turns the panels to follow the sun. This is the lowest regional LCOE it tracks. It projects convergence (costs coming together) at about USD 17/MWh by 2060. That is a projection, not an observed cost.

IRENA’s separate Africa figure is USD 0.074/kWh for 2024 (5th to 95th percentile USD 0.049 to 0.186). That is 67% below its 2015 value of USD 0.225/kWh. The wide range reflects financing. IRENA’s 2024 WACC assumption for Africa was 12%, against 3.8% for Europe. High irradiance (strong sunlight) lowers the electricity cost only when the cost of capital does not offset it.

Solar LCOE vs. Other Generation Technologies

IRENA reports that the 2024 global weighted average for utility-scale solar PV was 41% cheaper than the least-cost fossil fuel alternative. The table compares IRENA’s 2024 global weighted averages for new renewable projects.

Lazard’s 2026 report covers the US market. It finds unsubsidized renewable energy remains the most cost-competitive new-build generation on an LCOE basis. It also notes that wind and solar LCOEs have risen from their 2021 lows. Results depend on fuel prices and the cost of capital. So do not read the table as a ranking for every country.

LCOE for Homes, Businesses and Large Plants

The figures above are for utility-scale ground-mount systems. Smaller systems cost more per kWh. Lazard’s 2026 US analysis puts community and C&I solar at USD 88–197/MWh against USD 40–98/MWh for utility-scale solar. Four things cause the gap.

• Hardware scale: A large plant buys modules and inverters (which turn panel power into usable AC power) in bulk. A small system buys through distribution.
• Labor per watt: Roof preparation, racking (mounting frames), small inverters and metering take more labor per watt on a rooftop.
• Fixed costs: Permitting, design and interconnection costs are similar whatever the size, so they weigh more on a small system.
• Financing: Smaller systems usually carry higher borrowing costs.

A higher LCOE does not make rooftop solar uneconomic. A rooftop system competes with the customer’s retail tariff (the price the customer pays), not the wholesale price. So the comparison that matters is LCOE against the tariff the customer avoids.

Worked LCOE Example: 10 MW Ground-Mount in Spain

This is a hypothetical calculation to show how the inputs combine. The inputs are illustrative, not an observed project. The result is not a Spanish market benchmark.

Discounting costs and output at 5.5% over 25 years gives an LCOE of about EUR 38/MWh. Changing one input at a time shows what drives the result.

The same inputs at four discount rates give EUR 33/MWh at 3%. They give EUR 37/MWh at 5%, EUR 41/MWh at 7% and EUR 48/MWh at 10%. The financing assumption moves the result as much as a large change in capital cost. So state a project’s discount rate next to any LCOE figure. Keep money and energy units consistent. Record when you count the first investment, replacements and the final year.

For a simpler check, suppose the present value (today’s value of future amounts) of all modeled costs is USD 1,000,000. Suppose the present value of delivered electricity is 20,000 MWh. The result is USD 50/MWh, or USD 0.05/kWh. The solar installation cost breakdown covers the capital-cost components for building your own model.

How to Calculate and Check LCOE

To calculate it, add up the annual costs, each discounted to the present. Divide by the sum of annual energy, discounted on the same basis. Test sensitivity one input at a time. Change the discount rate, then the capital cost, then the energy assumption. If several inputs change together, record the scenario so reviewers can see the cause of the result. The P50/P90 energy-yield guide explains why energy estimates based on probability need a stated model and time frame. P50 is the yield expected to be met or exceeded in 50% of years. P90 is the yield expected to be met or exceeded in 90% of years. SurgePV’s generation and financial tool lets you model project LCOE alongside cash flow, IRR and payback.

LCOE, PPA Price and Rooftop Savings Answer Different Questions

LCOE estimates the cost of producing electricity under defined assumptions. A PPA price is a price set in a contract. It may include yearly price rises (escalation), delivery conditions and commercial risks. Rooftop savings depend on when energy is consumed, the customer tariff and the treatment of exports.

A Mexico PPA quotation, for example, belongs in a PPA comparison, not in this table as a Mexican LCOE. Check which metric the source reports. Check its currency, contract period and project scope. A low-cost country benchmark also cannot predict a household’s payback period.

The gap between LCOE and contracted revenue is the project’s margin. A project needs a PPA or tariff above its LCOE to earn a return. The size of the gap matters more than the LCOE alone. For a customer proposal, keep self-consumed electricity, exports and grid imports separate. Use specific yield to divide modeled production by the stated DC (direct current) capacity. Keep the same period and energy boundary.

Our guide to solar NPV, IRR and payback calculations covers the financial metrics that sit beside LCOE when you present to commercial clients. NPV means net present value.

Solar LCOE Trends: 2025 to 2035

pv magazine USA, reporting Bloomberg NEF’s 2026 LCOE report, says BNEF’s 2025 global fixed-axis solar benchmark was USD 39/MWh, up 6% year on year. It says BNEF expects costs to fall about 30% through to 2035. It also reports that developers added 87 GW of combined solar and storage in 2025 at an average LCOE of USD 57/MWh. The article does not say whether the 30% applies to fixed-axis solar only.

BNEF’s USD 39/MWh and IRENA’s USD 43/MWh and USD 44/MWh figures differ by method. BNEF publishes a benchmark for new projects. IRENA reports a weighted average of projects commissioned in the year. Do not subtract one from the other.

How to Use LCOE Data in Your Solar Business

An IRENA or BNEF figure is a benchmark, not a project cost. To use it:

1. Find your local benchmark. Use the country or regional figure for the right year as a sanity check. If your number is far from the benchmark, find out why. Do not adjust the model until it matches. The apples-to-apples solar quote comparison checklist lists what to match before comparing two quotes. Compare commissioning period, size, site conditions, cost scope and financing basis with the source group of projects. The commercial solar system design guide walks through a larger project.
2. Calculate site-specific LCOE: Run the project through solar design software with site irradiance and financial modeling. National averages hide large differences between sites in the same country.
3. Compare with avoided cost. Compare LCOE with the customer’s current electricity tariff. That comparison wins commercial projects, not the absolute LCOE.
4. Model the full financial picture. LCOE does not capture payback period, IRR, NPV or cash-flow timing. Use it as a screen. Then model the complete solar ROI (return on investment) picture before presenting to clients or lenders.
5. Track subsidies separately: Incentives change project economics without changing LCOE. Model the incentivized result next to the pre-incentive LCOE. The European solar incentives overview and the solar subsidies tracker cover the policy layer for Europe.

For a customer-facing document that carries LCOE, savings and ROI, see PV proposal software. To evaluate SurgePV, compare the solar simulation workflow with your real modeling needs. Ask which assumptions and outputs you can inspect for the project. Also check what your lender requires.

Energy Simulation and LCOE Accuracy

The energy estimate is the denominator, so an error in simulated annual output flows straight into LCOE. A 10% overestimate of generation understates LCOE by about the same proportion. Check four sources of error.

• Irradiance data: Use data suited to the system type. Our solar irradiance metrics guide explains when GHI, DNI and plane-of-array data apply. GHI is sunlight on a flat surface, DNI is direct sunlight from the sun, and plane-of-array data is sunlight on the tilted panel.
• Shading losses: Shade from nearby objects that the model misses is a common cause of an optimistic yield. Shadow analysis software finds shading issues before installation.
• Degradation: Record the rate the manufacturer’s datasheet states and keep it constant across scenarios. Degradation is the slow yearly loss of panel output.
• System losses: Wiring, mismatch, soiling (dirt on panels) and inverter losses all reduce delivered energy. An under-modeled loss gives an optimistic LCOE that real-world performance will not match.

Key points

• Match the year and the method. IRENA gives a weighted average of commissioned projects. BNEF gives a new-build benchmark. Lazard gives a US unsubsidized range. They give different numbers for different questions.
• Financing is half the story. IRENA’s WACC assumptions run from 3.8% in Europe to 12% in Africa. A high-irradiance site with expensive capital can cost more per kWh than a modest site with cheap capital.
• A national figure is a screen. Use it to question your model, then price the actual project with site yield, scope and financing stated.

Frequently asked questions

What is LCOE in solar energy?

LCOE (levelized cost of energy) is the lifetime cost of a solar plant divided by its lifetime energy output. Both are discounted, which means adjusted for the time value of money. It is expressed in $/kWh or $/MWh. It covers capital cost, operating expenses, financing and degradation (slow loss of output) over the study life. It is the standard way to compare generation cost across countries, system types and technologies.

Which country has the lowest solar LCOE?

In IRENA’s 2024 data, China had the lowest weighted average for utility-scale solar PV at USD 0.033/kWh, followed by India at USD 0.038/kWh. Among the 15 markets IRENA charts in its 2024 report, Japan was the highest at USD 0.120/kWh. IRENA’s 2025 edition reverses the China and India order. It gives USD 35/MWh for India and USD 36/MWh for China. Wood Mackenzie’s 2025 analysis puts single-axis tracker solar in the Middle East and Africa at USD 37/MWh. This is the lowest regional figure it reports.

What is the global average solar LCOE?

IRENA’s 2024 report gives a global weighted average of USD 0.043/kWh (USD 43/MWh) for utility-scale solar PV commissioned in 2024. That is 0.6% higher than 2023 and 90% lower than 2010. IRENA’s 2025 edition, published in July 2026, reports USD 44/MWh. Bloomberg NEF’s separate 2025 benchmark for fixed-axis solar is USD 39/MWh. It uses a different method that tracks new-build costs rather than a commissioning-year average.

Why is solar LCOE lower in China and India than in the United States?

IRENA ties China’s result to vertically integrated supply chains and large manufacturing capacity at home. It reports that solar PV LCOE rose in the United States and the European Union in 2024. The causes were permitting delays, interconnection bottlenecks and higher balance-of-system costs. IRENA’s total installed cost figures show the gap. They are about USD 591/kW in China and USD 525/kW in India against USD 1,058/kW in the United States.

How does solar LCOE compare with fossil fuel generation?

IRENA reports that the 2024 global weighted average for utility-scale solar PV was 41% cheaper than the least-cost fossil fuel alternative. Lazard’s 2026 US analysis was published in July 2026. It finds unsubsidized renewable generation remains the most cost-competitive new-build option. It also notes that solar LCOEs have risen from their 2021 lows.

What will solar LCOE be in 2030 and 2035?

Bloomberg NEF, as reported by pv magazine USA in February 2026, expects solar costs to fall about 30% through 2035. Wood Mackenzie projects single-axis tracker solar in the Middle East and Africa to converge at about USD 17/MWh by 2060. These are analyst projections, not observed costs.

Is solar LCOE the same as the price paid under a PPA?

No. LCOE estimates generation cost under stated assumptions. A PPA is a commercial contract for electricity and can contain different revenue and risk terms.

Can a country average predict my rooftop solar payback?

No. Rooftop payback needs the project cost, the customer’s power use, self-consumption, export compensation, financing and the tax treatment. Self-consumption is power used on site. Utility-scale country LCOE is only a benchmark for context.

Sources

• IRENA, Renewable Power Generation Costs in 2024 (July 2025): country, regional and technology figures, Table 3.3, WACC assumptions.
• IRENA, Renewable Power Generation Costs in 2025 (July 2026): global solar PV LCOE of USD 44/MWh.
• Lazard, LCOE+ 2026 (Version 19.0) (July 2026) and LCOE+ June 2025: US ranges.
• Wood Mackenzie, regional LCOE press release (22 October 2025).
• pv magazine USA, “Solar LCOE to fall 30% by 2035, says BloombergNEF” (23 February 2026).
• IEA Cost of Capital Observatory.