Lazard’s latest Levelized Cost of Energy+ report highlights how supply chain pressures and import levies on Asian components have eroded cost advantages. New U.S. compliance rules, including the Foreign Entity of Concern mandate, further complicate the procurement landscape for cells and batteries. These expenses are exacerbated by the rising price of silver, an essential raw material for module manufacturing.

Traditional energy sources offer no refuge from these trends. Combined-cycle gas turbine plants hit a 15-year cost peak of $48–$107/MWh, burdened by long lead times and turbine delivery bottlenecks. Regardless, utilities remain committed to gas infrastructure, citing the urgent need to satisfy grid reliability demands from AI data centers and broader electrification efforts.

Onshore wind continues to rival solar, maintaining a competitive range between $37 and $99/MWh. A decade of innovation has nearly halved capital costs since 2010. Modern turbines now feature longer blades and AI-driven monitoring, allowing them to capture energy more efficiently in low-wind environments while reducing long-term maintenance requirements.