Bloomberg Quotes Guggenheim Securities: “Solar Is Now 33% Cheaper Than Gas Power in US”

Utility-scale solar is now about a third cheaper than gas-fired power, while onshore wind is about 44% less expensive, Guggenheim analysts led by Shahriar Pourreza said Monday in a note to clients.

“Solar and wind now present a deflationary opportunity for electric supply costs,” the analysts said, which “supports the case for economic deployment of renewables across the US.”

Gas prices have surged amid a global supply crunch after Russia’s invasion of Ukraine, while tax-credit extensions and sweeping US climate legislation have brought down the cost of wind and solar. Renewables-heavy utilities like NextEra Energy Inc. and Allete Inc. stand to benefit, and companies that can boost spending on wind and solar will also see faster growth, Guggenheim said.

This provides a legitimate answer to the question: What will power all these electric vehicles?  Keep in mind that Tesla alone has delivered 343,000 EVs so far this year; we’re not talking about a who-cares niche market any longer.