Geothermal Power Finally Undercuts Solar-Plus-Storage on Price

In NV Energy's 2026 resource plan, three geothermal proposals were priced between $105 and $107 per megawatt-hour. This lands below the $114 per megawatt-hour capacity-weighted average for the 11 solar-plus-storage projects included in the same filing. While the margin is narrow—roughly 7%—it marks a significant shift for a technology historically hampered by high development costs. Joel Edwards, CTO of developer Zanskar, described the development as a turning point, noting that the cost advantage for solar has tightened as permitting delays, land costs, and trade tariffs drive up prices for photovoltaic installations.

Unlike solar, which requires battery arrays to bridge the gap during non-production hours, geothermal provides continuous, baseload power. This reliability has attracted major corporate buyers, with Google and Amazon backing significant capacity through NV Energy. Despite these successes, the public market for geothermal firms remains volatile. Fervo Energy, which debuted on the public market earlier this year, has seen its stock price drop significantly amid concerns over transmission curtailment and operational challenges at its Cape Station site. However, with federal tax credits secured through 2033 and aggressive drilling innovations reducing well completion times, the sector is positioning itself to scale rapidly, aiming for even lower costs as drilling techniques improve.