Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) reports that large-scale solar PV capital costs have declined by 8% for the second consecutive year, according to its latest GenCost draft report.
The report assesses electricity generation costs to guide infrastructure planning, highlighting the continued dominance of renewable energy sources like solar PV and wind in Australia’s energy transition.
While supply chain disruptions and rising freight costs led to a 20% increase in technology costs in 2022-23.
The 2023-24 edition observes declining costs for key transition technologies, including solar PV and BESS. BESS costs saw the largest drop, falling 20% in 2024-25.
Statistics
Variable renewable energy technologies now offer the lowest levelized cost of energy (LCOE) for new-build electricity generation.
This positions solar PV as a critical asset in Australia’s transition to net-zero, with the Climate Change Authority identifying it as the fastest technology to deploy.
Utility-scale solar projects take two to three years for development and one and a half years for construction, compared to longer timeframes for wind or offshore energy systems.
The report also addresses nuclear energy, currently banned in Australia but a topic of debate ahead of the federal election. CSIRO concludes that nuclear energy offers “no unique cost advantage” over renewables, even with its long operational life.
“Similar cost savings can be achieved with shorter-lived technologies, including renewables, even when accounting for the need to build them twice,” said Paul Graham, CSIRO’s chief energy economist.
Global nuclear construction times have risen to an average of 8.2 years, with total development in Australia estimated at 15 years or more, further limiting its feasibility in the country’s energy landscape.
