U.S. photovoltaic generation costs continue to decline

According to the latest report in the "Tracking the Sun" series from the Lawrence Berkeley National Laboratory under the U.S. Department of Energy, the cost of installing solar photovoltaic systems in the United States continues to decline. This comprehensive study, titled "Tracking the Sun 5," provides a historical overview of PV installation costs in the U.S. from 1998 to 2011. It reveals that the average cost of a U.S. PV system fell to $4.9-$6.1 per watt in 2011. Additionally, the report highlights potential further reductions in so-called "soft costs." "This report really showcases how solar power is evolving in the U.S. and gives us insight into future possibilities," said Adam Browning, executive director of the Vote Solar Initiative. "Despite economic challenges, political uncertainty, and entrenched issues within the electricity sector, solar power is proving resilient and transforming the energy landscape. That's truly inspiring!" The report analyzes pricing trends across numerous dimensions, utilizing project-level data from around 150,000 residential, commercial, and utility-scale PV systems. These systems represent 76% of all grid-connected installations in the U.S. during 2011. Comparisons were made based on factors such as time, system size, customer-owned versus third-party systems, regional differences, and more. Component prices have been falling faster than balance-of-system (BOS) costs. Since 1998, prices have decreased by an average of 5-7% annually, particularly accelerating after 2009. Between 2010 and 2011, there was an 11-14% drop, followed by another 3-7% reduction in the first half of 2012. The report attributes much of this decline to falling component prices, which dropped by $2.1 per watt between 2008 and 2011. While non-module costs have also decreased by 30% since 1998, their rate of decline has not matched the rapid pace of module price reductions.