On: February 16, 2023 In: Our Insights

CohnReznick Capital has completed its H1 2023 analysis of the Market Cost of Energy (MCOE) for 2023 through 2029 for wind and utility solar across six regions: CAISO, Southwest, ERCOT, PJM, MISO/SPP, and Southeast (solar only). This is the first analysis of year-1 PPA prices since the passage of the Inflation Reduction Act in 2022. In this edition, we analyze the effects of both ITC and PTC on year-1 cost for solar as well as PTC for wind. CAPEX has increased an average of 20% for renewables across regions causing 2023 year-1 PPAs to increase. However, the expansion of tax credits for renewables has led to lower year-1 prices in 2028 than previously expected.