Rising fossil fuel prices boost long-term demand for solar farms, making solar power cheaper than fossil fuels.

Increasing prices of coal, crude oil, and natural gas are expected to sustain strong demand for solar farm construction, independent of federal tax incentives. Growth in AI data centers and electric vehicle sales could further increase electricity demand, supporting solar adoption. Solar farms offer a stable cost structure over 20 to 30 years, appealing to utilities and large power users. Lazard's June 2025 analysis shows solar electricity costs now undercut even the cheapest fossil fuels without tax incentives, highlighting solar's growing competitiveness.