One of the common arguments against renewable energy is that it costs too much. A recent comparison of wholesale electricity prices shows that coal-generated power costs three cents a kilowatt-hour, new natural gas plants produce at six cents, wind power costs eight cents, and solar, 13 cents. But a recent Wall Street Journal analysis raises two important points that are changing those figures.
First, costs are falling, due to technological advances such as larger wind turbines and cheaper components for solar power arrays. The latest price data released by the Department of Energy finds that the price of wind-generated energy fell to four cents per kilowatt-hour, not counting the two-cent federal tax subsidy for that startup industry.