Ivanpah Is Closing — But Solar Is Still Strong
Published · 4 min read
California’s $2.2 billion Ivanpah plant will shut down. That sounds big. But it doesn’t mean solar power is failing. It shows a shift from one type of solar to another.
Ivanpah is a concentrated solar power (CSP) project near the California–Nevada border. It started delivering power in 2014 after work began in 2010. The total cost was about $2.2 billion. The U.S. Department of Energy backed $1.6 billion in loan guarantees.
In early 2025, the main buyer, PG&E, moved to end its power contracts years before their 2039 end date, citing poor cost performance. The facility is expected to shut units starting in 2026.
Headlines called the project a failure. But experts note that PV solar (the panels you see on rooftops and in large fields) got far cheaper and faster over the last decade.
Ivanpah uses CSP, not PV. They’re different technologies. CSP relies on mirrors and heat. PV converts sunlight to electricity directly. A small share of the world’s “solar” capacity uses CSP today.
Why Ivanpah struggled
Ivanpah’s design looks like a sci-fi scene: three tall towers and about 173,500 mirrors called heliostats. They reflect sunlight to receivers at the top of each tower. Heat makes steam, and a turbine spins. It’s clever, and it worked, but costs stayed high. Output also lagged what the buyer wanted. The plant used some natural gas to keep systems hot, which didn’t help on emissions goals.
At-a-glance issues
- High operating costs and lower-than-expected generation.
- Complex upkeep for many moving parts and mirrors.
- Fossil backup for maintaining temperature.
- Wildlife concerns around the intense reflected beams.
CSP vs. PV: how they differ
| Feature | CSP (Ivanpah) | PV (most new solar) |
| How it works | Mirrors focus heat into a tower to make steam and run a turbine. | Semiconductor cells turn sunlight into electricity directly. |
| Main hardware | Heliostats, receivers, towers, steam cycle | Modules (panels), inverters, racking |
| Complexity | High (many moving parts) | Lower (modular and repeatable) |
| Market share | Small share of global “solar” capacity | Dominant share worldwide |
Costs tell the real story
Let’s talk price, because that’s where the market made up its mind. The latest Lazard Levelized Cost of Energy (LCOE+) shows unsubsidized utility-scale PV power in the U.S. around $38–$78 per MWh (that’s 3.8–7.8¢/kWh). New gas plants often come in higher. So PV is cheap and quick to build, and it keeps getting better.
| Resource | Typical LCOE (unsubsidized) | Notes |
| Utility-scale PV | $38–$78/MWh | Fast build times; falling equipment costs |
| PV + Storage | Higher than PV alone, but competitive | Shifts solar power into evening peaks |
| New Gas | $48–$107/MWh (or more for peakers) | Fuel costs and higher capex push prices up |
So, does this mean solar is failing?
No. Ivanpah’s closure shows a technology shift, not a market collapse. CSP was the cutting edge a decade ago. But PV sprinted ahead on cost and scale. That’s why planners, utilities, and investors now prefer PV, often with batteries. It’s cheaper to build. It’s easier to operate. And it helps meet clean power goals.
Industry coverage this month makes the same point: the plant couldn’t keep up with modern PV economics, and PG&E sought to save money for customers by ending the deal early. Those steps don’t kill solar. They move the grid toward the lowest-cost clean options available today.
What experts and records say
- DOE records confirm the $1.6 billion loan guarantees and the plant’s 2014 start.
- News reports in 2025 describe contract terminations and planned unit shutdowns in 2026.
- Cost studies show PV as the cheapest new build for many U.S. regions, even without subsidies.
Takeaways
- Don’t lump CSP and PV together. They’re different tools. One is fading in most markets; the other is booming.
- Follow the costs. PV’s low LCOE drives adoption, and storage extends its value into the evening.
- Expect change. Energy tech moves fast, and some early bets won’t age well. That’s normal in a growing industry.
Bottom line: Ivanpah’s shutdown is big news, but it doesn’t spell doom for solar power. It shows that the market chose simpler, cheaper PV systems. And that’s good for clean energy growth, grid planning, and, in time, customer bills.
