Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Installed Cost of Solar Photovoltaic Systems in the U.S. Declined Significantly in 2010 and 2011

16.09.2011
Berkeley Lab releases “Tracking the Sun IV,” a report on PV systems from 1998 to 2010.

The installed cost of solar photovoltaic (PV) power systems in the United States fell substantially in 2010 and into the first half of 2011, according to the latest edition of an annual PV cost tracking report released by the Department of Energy’s Lawrence Berkeley National Laboratory (Berkeley Lab).

The average installed cost of residential and commercial PV systems completed in 2010 fell by roughly 17 percent from the year before, and by an additional 11 percent within the first six months of 2011. These recent installed cost reductions are attributable, in part, to dramatic reductions in the price of PV modules. Galen Barbose of Berkeley Lab’s Environmental Energy Technologies Division and co-author of the report explains: “Wholesale PV module prices have fallen precipitously since about 2008, and those upstream cost reductions have made their way through to consumers.”

The report indicates that non-module costs—such as installation labor, marketing, overhead, inverters, and the balance of systems—also fell for residential and commercial PV systems in 2010. “The drop in non-module costs is especially important,” notes report co-author and Berkeley Lab scientist Ryan Wiser, “as those are the costs that can be most readily influenced by solar policies aimed at accelerating deployment and removing market barriers, as opposed to research and development programs that are also aimed at reducing module costs.” According to the report, average non-module costs for residential and commercial systems declined by roughly 18 percent from 2009 to 2010.

Turning to utility-sector PV, costs varied over a wide range for systems installed in 2010, with the cost of systems greater than 5,000 kilowatts (kW) ranging from $2.90 per Watt (W) to $6.20/W, reflecting differences in project size and system configuration, as well as the unique characteristics of certain individual projects. Consistent with continued cost reductions, current benchmarks for the installed cost of prototypical, large utility-scale PV projects generally range from $3.80/W to $4.40/W.

The market for solar PV systems in the United States has grown rapidly over the past decade, as national, state and local governments offered various incentives to expand the solar market and accelerate cost reductions. The study—the fourth in Berkeley Lab’s “Tracking the Sun” report series—describes trends in the installed cost of PV in the United States, and examined more than 115,000 residential, commercial and utility-sector PV systems installed between 1998 and 2010 across 42 states, representing roughly 78 percent of all grid-connected PV capacity installed in the United States. Naïm Darghouth, also with Berkeley Lab, explains that “the study is intended to provide policy makers and industry observers with a reliable and detailed set of historical benchmarks for tracking and understanding past trends in the installed cost of PV.”

Costs Differ by Region and by Size and Type of System

The study also highlights differences in installed costs by region and by system size and installation type. Comparing across U.S. states, for example, the average cost of PV systems installed in 2010 and less than 10 kilowatts (kW) in size ranged from $6.30/W to $8.40/W depending on the state. The report also found that residential PV systems installed on new homes had significantly lower average installed costs than those installed as retrofits to existing homes.

Based on these data and on installed cost data from the sizable German and Japanese PV markets, the authors suggest that PV costs may be driven lower through large-scale deployment programs, but that other factors are also important in achieving cost reductions.

The report also shows that PV installed costs exhibit significant economies of scale. Among systems installed in 2010, those smaller than 2 kW averaged $9.80/W, while large commercial systems >1,000 kW averaged $5.20/W; partial-year data for 2011 suggests that average costs declined even further in 2011. Large utility-sector systems installed in 2010 registered even lower costs, with a number of systems in the $3.00/W to $4.00/W range.

Cost Declines for PV System Owners in 2010 Were Partially Offset by Falling Incentives

The average size of direct cash incentives provided through state and utility PV incentive programs has declined steadily since their peak in 2002. The dollar-per-Watt benefit of the federal investment tax credit (ITC) and Treasury grant in lieu of the ITC, which are based on a percentage of installed cost, also fell in 2010 as a result of the drop in average installed costs.

The reduced value of federal, state, and utility incentives in 2010 partially offset the decline in installed costs. Therefore, while pre-incentive installed costs fell by $1.00/W and $1.50/W for residential and commercial PV in 2010, respectively, the decline in “net” (or post-incentive) installed costs fell by $0.40/W for residential PV and by $0.80/W for commercial PV.

The report “Tracking the Sun IV: An Historical Summary of the Installed Cost of Photovoltaics in the United States from 1998 to 2010,” by Galen Barbose, Naïm Darghouth, and Ryan Wiser, may be downloaded from http://eetd.lbl.gov/ea/emp/reports/lbnl-5047e.pdf.

The research was supported by funding from the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy and by the Clean Energy States Alliance, a national nonprofit coalition of leading state clean energy programs that work together to advance renewable energy project deployment in their states and across the country.

Lawrence Berkeley National Laboratory addresses the world’s most urgent scientific challenges by advancing sustainable energy, protecting human health, creating new materials, and revealing the origin and fate of the universe. Founded in 1931, Berkeley Lab’s scientific expertise has been recognized with 12 Nobel prizes. The University of California manages Berkeley Lab for the U.S. Department of Energy’s Office of Science.

Allan Chen | EurekAlert!
Further information:
http://www.lbl.gov

More articles from Power and Electrical Engineering:

nachricht A storage battery for the entire world
04.06.2020 | Albert-Ludwigs-Universität Freiburg im Breisgau

nachricht These flexible feet help robots walk faster
03.06.2020 | University of California - San Diego

All articles from Power and Electrical Engineering >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Small Protein, Big Impact

In meningococci, the RNA-binding protein ProQ plays a major role. Together with RNA molecules, it regulates processes that are important for pathogenic properties of the bacteria.

Meningococci are bacteria that can cause life-threatening meningitis and sepsis. These pathogens use a small protein with a large impact: The RNA-binding...

Im Focus: K-State study reveals asymmetry in spin directions of galaxies

Research also suggests the early universe could have been spinning

An analysis of more than 200,000 spiral galaxies has revealed unexpected links between spin directions of galaxies, and the structure formed by these links...

Im Focus: New measurement exacerbates old problem

Two prominent X-ray emission lines of highly charged iron have puzzled astrophysicists for decades: their measured and calculated brightness ratios always disagree. This hinders good determinations of plasma temperatures and densities. New, careful high-precision measurements, together with top-level calculations now exclude all hitherto proposed explanations for this discrepancy, and thus deepen the problem.

Hot astrophysical plasmas fill the intergalactic space, and brightly shine in stellar coronae, active galactic nuclei, and supernova remnants. They contain...

Im Focus: Biotechnology: Triggered by light, a novel way to switch on an enzyme

In living cells, enzymes drive biochemical metabolic processes enabling reactions to take place efficiently. It is this very ability which allows them to be used as catalysts in biotechnology, for example to create chemical products such as pharmaceutics. Researchers now identified an enzyme that, when illuminated with blue light, becomes catalytically active and initiates a reaction that was previously unknown in enzymatics. The study was published in "Nature Communications".

Enzymes: they are the central drivers for biochemical metabolic processes in every living cell, enabling reactions to take place efficiently. It is this very...

Im Focus: New double-contrast technique picks up small tumors on MRI

Early detection of tumors is extremely important in treating cancer. A new technique developed by researchers at the University of California, Davis offers a significant advance in using magnetic resonance imaging to pick out even very small tumors from normal tissue. The work is published May 25 in the journal Nature Nanotechnology.

researchers at the University of California, Davis offers a significant advance in using magnetic resonance imaging to pick out even very small tumors from...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

Dresden Nexus Conference 2020: Same Time, Virtual Format, Registration Opened

19.05.2020 | Event News

Aachen Machine Tool Colloquium AWK'21 will take place on June 10 and 11, 2021

07.04.2020 | Event News

International Coral Reef Symposium in Bremen Postponed by a Year

06.04.2020 | Event News

 
Latest News

Why developing nerve cells can take a wrong turn

04.06.2020 | Life Sciences

The broken mirror: Can parity violation in molecules finally be measured?

04.06.2020 | Physics and Astronomy

Innocent and highly oxidizing

04.06.2020 | Life Sciences

VideoLinks
Science & Research
Overview of more VideoLinks >>>