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The Dirty Little Secret: Renewable Energy Might Not Be as Cheap as You Think

Posted on May 21, 2025 By Dante No Comments on The Dirty Little Secret: Renewable Energy Might Not Be as Cheap as You Think

For years, we’ve been hearing about the plummeting cost of renewable energy and how it’s finally on par with, if not cheaper than, traditional fossil fuels. The narrative has been that solar and wind power are the future, and that our reliance on coal, gas, and oil is slowly becoming a thing of the past. But is this really the case? Are we being misled by the rosy projections and glossy infographics touting the “cost-effectiveness” of renewable energy?

Learn more: Cutting Through the Noise: The Urgent Need to Reduce Greenhouse Gas Emissions

The truth is, the cost of renewable energy is more nuanced than we’ve been led to believe. While it’s true that the cost of generating electricity from solar and wind has decreased dramatically over the past decade, this doesn’t necessarily translate to a cheap end-product. In fact, the entire supply chain of renewable energy – from manufacturing to installation to maintenance – is often more expensive than we think.

Take, for instance, the cost of producing solar panels. While the cost per unit has indeed decreased over time, the overall cost of building a solar farm is still several times higher than that of a traditional fossil fuel power plant. According to a recent study by the National Renewable Energy Laboratory, the average cost of building a solar farm in the United States is around $2.50 per watt, compared to just $1.20 per watt for a traditional coal-fired power plant.

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And then there’s the issue of energy storage. As we transition to a more renewable-based energy mix, we need to figure out how to store excess energy generated by solar and wind power for use during periods of low energy demand. Currently, the cost of energy storage technologies like batteries is still prohibitively expensive, making it difficult to integrate renewables into the grid without significant investments in infrastructure.

Another factor to consider is the cost of grid integration. As renewable energy becomes a larger share of the energy mix, we need to upgrade our grid infrastructure to accommodate the fluctuating output of solar and wind power. This can involve significant investments in new transmission lines, substations, and other infrastructure – not to mention the cost of grid management and control systems.

So, what’s the real cost of renewable energy? It’s not just the cost of generating electricity from solar and wind, but also the cost of the entire supply chain, from manufacturing to installation to maintenance. It’s the cost of energy storage, grid integration, and infrastructure upgrades. And it’s the cost of dealing with the intermittency of renewable energy sources, which can require significant investments in backup power generation and energy storage.

In short, while the cost of generating electricity from renewable sources is certainly decreasing, the overall cost of renewable energy is more complex and multifaceted than we’ve been led to believe. As we move forward in our transition to a more sustainable energy mix, it’s essential to consider the full range of costs involved in renewable energy, rather than just focusing on the cost per unit of electricity generated. Only then can we make truly informed decisions about the future of our energy system.

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