In 2025, large-scale U.S. utility solar costs range from $0.95 to $1.23 per watt (DC) for a new, single-axis tracking system, with the final cost depending heavily on project size, location, and specific equipment.
For a 1 MW (megawatt) utility-scale solar farm, the approximate cost is $980,000, not including land acquisition. The total cost per watt is around $0.98, reflecting the significant cost savings from economies of scale compared to residential installations.
Leasing land: Between $1,000 and $5,000 per acre per year.
Buying land: The average cost to build a solar farm, including land, is $300,000 to $500,000 per acre.
Companies using automation in solar installation for utility-scale projects include
AES Corporation, Terabase Energy, Built Robotics, Charge Robotics, and Rosendin Electric
Terabase Energy Terafab is twice as fast installing solar farms.
China utilizes robotics extensively in its solar energy sector for both installation and maintenance, with some cleaning robots even powered by their own built-in solar panels to operate autonomously. A Chinese firm, Leapting, has used robots to install a 350MW solar farm in Australia and says each robot does the work of 3 or 4 humans, but much quicker and it's looking to 100% automate solar farm setup.
The primary components of these costs include equipment, installation labor, and land. Automation and new technology are critical to further lowering these costs, particularly for labor and installation.
Components of utility-scale solar costs (2025)
The total cost of a utility-scale solar project can be divided into major and minor components.
Major cost factors
Equipment ($0.70-$0.92 per watt): This is the largest single cost and includes:
Solar panels (modules): The cost of modules has been volatile, but technological advancements like higher-efficiency Tunnel Oxide Passivated Contact (TOPCon) panels are driving down costs on a per-watt basis by requiring fewer panels and balance-of-system equipment.
Inverters: These convert the direct current (DC) power from the panels into alternating current (AC) power for the grid.
Mounting and racking: For most utility-scale projects, this includes single-axis tracking systems that follow the sun, which can add cost but increase overall energy output.
Transformers and wiring: Electrical components for power transmission.
Installation Labor (15%-20% of total cost): The second-largest cost factor, this includes the labor for mounting, wiring, assembly, and on-site management. Labor costs vary by region and experience.
Land: While a smaller percentage of the initial capital expenditure, land can be a significant cost. Lease prices for a solar farm can range from $1,000 to $5,000 per acre, with the cost varying based on location. Land preparation, such as clearing and grading, is an additional expense.
Balance of System and Soft Costs (10%-15% of total cost): This catch-all category includes:
Design and engineering
Permitting and regulatory compliance
Grid interconnection fees and upgrades
Project management and administrative expenses
Safety and security measure
Portable "solar factories": Companies like Charge Robotics are developing on-site factories that automatically assemble panels, trackers, and mounting brackets, speeding up installation and improving consistency.
AI-driven analytics and project management: AI software optimizes project planning, logistics, and scheduling. It can predict potential delays from weather or supply chain issues and adjust accordingly, preventing costly overruns.
Supply chain optimization: AI and automation in inventory management ensure that materials arrive precisely when needed. This prevents delays from missing parts and reduces costs associated with warehousing and waste.
Robotics can reduce installation costs by up to $0.15 per watt, which is more impactful than incremental improvements in panel efficiency.
Overall cost reductions: As AI and automation become more widely adopted in both manufacturing and field installation, analysts expect additional cost reductions of 15%-20% by 2028