U.S. photovoltaic generation costs continue to decline

A new report from the Lawrence Berkeley National Laboratory, part of the U.S. Department of Energy in Berkeley, California, highlights the ongoing decline in the cost of installed solar photovoltaic (PV) systems across the United States. Released as part of their "Tracking the Sun" series, the study provides a detailed overview of PV installation prices from 1998 to 2011. According to the report, the average cost of a U.S. PV system in 2011 was between $4.9 and $6.1 per watt. Additionally, the report suggests that "soft costs," such as permitting and installation, could see further reductions. Adam Browning, Executive Director of the Vote Solar Initiative, expressed optimism about the future of solar energy in the U.S. He stated, "This report clearly demonstrates how solar power is evolving in America and where we might focus our efforts next. Despite economic challenges, political instability, and entrenched issues within the traditional energy sector, solar is proving resilient and transforming the energy landscape. It's truly inspiring!" The report analyzes pricing trends from numerous angles, drawing on project-level data from approximately 150,000 residential, commercial, and utility-scale PV systems. These installations represent 76% of all grid-connected PV systems in the U.S. in 2011. The study compares price trends based on factors like time, system size, ownership type (customer-owned vs. third-party), geographic location, and more. Over the years, component prices have seen sharper declines compared to balance-of-system (BOS) costs. Between 1998 and 2011, prices fell by an average of 5-7% annually, with a significant drop of 11-14% occurring between 2010 and 2011 alone. In the first half of 2012, prices decreased by another 3-7%. The report attributes much of this decline to falling module prices, which dropped by $2.1 per watt between 2008 and 2011. Meanwhile, non-module costs have decreased by 30% over the same period, though at a slower pace than module prices. As the industry continues to grow, stakeholders are hopeful that these trends will persist, driving down costs even further and making solar energy increasingly accessible.