Fact brief: Does solar energy need subsidies to compete with fossil fuels?

Unsubsidized utility-scale solar is generally cheaper than new fossil fuel power plants, with a 2025 analysis showing a mean levelized cost of energy (LCOE) of $58 per megawatt-hour for solar compared to $79 for natural gas and $128 for coal. The International Energy Agency reports solar is the cheapest new electricity source globally in most regions, though subsidies can further reduce costs.