Solar With Batteries Cheaper Than Gas in Parts of U.S. Southwest

For example, a 100-megawatt solar farm that goes into service in Arizona in 2021, coupled with a 25-megawatt storage system with four hours of capacity, will be able to provide power for $36 a megawatt-hour, according to BNEF. That’s well below the $47 price from a new combined-cycle gas plant, according to the report.

“In the long-term, this is a threat to gas suppliers whose demand from utilities will be in decline,” Bromley said.