The cost of financing for renewable power

The cost of capital (CoC) for renewable power generation technologies is a major determinant of the total price to purchasers of renewable electricity. Both reliable data, and a deep understanding of the composition of the CoC and its drivers, are therefore critical information. Crucially, even small differences in the CoC that are not properly accounted for can result in misleading cost calculations and lead to poor policy making.

This IRENA report presents new cost of capital data, obtained from an expert survey and interviews covering all major regions for onshore wind, offshore wind and solar photovoltaic (PV). The coverage of this survey is believed to be unprecedented in terms of its geographical and technological breadth; as such, the results may represent the most wide-ranging database on renewable energy financing available today.

The report fills a key information gap by providing greater understanding of the composition of the CoC and its drivers to assist policy makers in developing effective approaches to support the energy transition that reflect technology and country risks, and help support energy analysts/modellers seeking accurate cost estimates.

In addition to the report, the associated Data appendix features cost of capital data for solar PV, onshore and offshore wind for 100 countries, benchmarked from the survey data.