World Solar Costs to Fall Another 40% by 2020
The price of installed photovoltaic solar systems will fall 40% around the world between 2014 and 2020, according to analysis published earlier this month by GTM Research.
An average cost of US$1.24 will be enough to push the global solar market well above 100 gigawatts by the end of this decade, Greentech reports.
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The greatest savings will be found in “balance of system” (BOS) costs, the expenses incurred to actually get a solar array up and running, Munsell explains. Even though BOS costs fell 39 to 64% between 2007 and 2014, they’re still a bigger cost factor than the photovoltaic modules that generate the power. In 2014, BOS costs accounted for 77% of the price tag on an average residential solar system in the U.S., compared to 58% in 2007.
“While declining module costs remain important, innovations in PV power electronics, structural hardware, installation processes, and the integration of PV systems as a whole will be the primary push toward more economically competitive solar in the wake of waning global incentives,” report author MJ Shiao told Munsell.