09.30.16
The modeled costs to install solar photovoltaic (PV) systems continued to decline in the first quarter of 2016 in the US residential, commercial, and utility-scale sectors, according to updated benchmarks from the Energy Department’s National Renewable Energy Laboratory (NREL).
Driving the cost reductions were lower module and inverter prices, increased competition, lower installer and developer overheads, improved labor productivity, and optimized system configurations.
“The continuing total cost decline of solar PV systems demonstrates the sustained economic competitiveness of solar PV for the industry across all three sectors,” said Ran Fu, NREL senior analyst and project lead.
The modeled costs for the first quarter of 2016 were down from the fourth quarter of 2015 by 6%, 4%, and 20% in the residential, commercial, and utility-scale sectors, respectively. The costs fell to $2.93 per watt of direct current for residential systems, $2.13 per watt of direct current for commercial systems, and $1.42 per watt of direct current (Wdc) for utility-scale systems for fixed-tilt utility-scale systems, and $1.49 Wdc for one-axis-tracking utility-scale systems.
“Such accurate cost benchmarks are critical for tracking the progress of PV systems toward cost-reduction goals. Because our cost model categorizes hardware and non-hardware costs with a high degree of resolution, the results can also be used to identify specific cost-reduction investment opportunities and assess regional levelized costs of energy,” Fu said.
Driving the cost reductions were lower module and inverter prices, increased competition, lower installer and developer overheads, improved labor productivity, and optimized system configurations.
“The continuing total cost decline of solar PV systems demonstrates the sustained economic competitiveness of solar PV for the industry across all three sectors,” said Ran Fu, NREL senior analyst and project lead.
The modeled costs for the first quarter of 2016 were down from the fourth quarter of 2015 by 6%, 4%, and 20% in the residential, commercial, and utility-scale sectors, respectively. The costs fell to $2.93 per watt of direct current for residential systems, $2.13 per watt of direct current for commercial systems, and $1.42 per watt of direct current (Wdc) for utility-scale systems for fixed-tilt utility-scale systems, and $1.49 Wdc for one-axis-tracking utility-scale systems.
“Such accurate cost benchmarks are critical for tracking the progress of PV systems toward cost-reduction goals. Because our cost model categorizes hardware and non-hardware costs with a high degree of resolution, the results can also be used to identify specific cost-reduction investment opportunities and assess regional levelized costs of energy,” Fu said.