Is behind-the-meter power cheaper than grid power for a data centre?
Not per megawatt-hour. In 2026 grid-tied solar PPAs averaged about $64/MWh in North America, while new behind-the-meter gas typically runs $70–130/MWh all-in. But behind-the-meter often wins on time-adjusted cost: if the grid cannot deliver inside the offtaker’s 12–24 month window, the cheaper grid price is not actually available.
What does a grid-tied solar PPA cost in 2026?
LevelTen’s Q1 2026 PPA Price Index reports the average North American solar PPA at $64.49/MWh, up 4.7% in the quarter and about 13% year on year. Regional ranges run $35–45/MWh in ERCOT, $45–55/MWh in MISO South and $65–75/MWh in PJM. Wind averaged $79.40/MWh.
What does behind-the-meter gas cost?
Indicative all-in costs are $80–130/MWh for new-build gas reciprocating engines and $70–110/MWh for combined-cycle turbine projects, depending on gas basis, utilisation, scale and offtaker credit. Lazard’s June 2025 LCOE+ ranges gas combined cycle at $48–109/MWh and gas peaking at $149–251/MWh; behind-the-meter reciprocating typically lands between.
Why is behind-the-meter the dominant path if it costs more per MWh?
Static $/MWh comparisons favour the grid because grid power amortises capital across a larger asset base. Time-adjusted cost — discounting the price by the probability that the power arrives inside the offtaker’s deployment window — can favour behind-the-meter. For a 12–24 month window, the grid may not deliver at all.
How do the 2025 tax-credit changes affect the choice?
Wind and solar §45Y/§48E eligibility phases out for projects not under construction by 5 July 2026, while storage, geothermal, hydro and nuclear kept eligibility. The combined effect favours firm-power technologies — geothermal, nuclear, gas paired with storage — over new wind and solar.
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