SOLAR COSTS FALLING

A September 2011 report from the US Department of Energy (through its Lawrence Livermore National Laboratory) states: “The cost to install a photovoltaic system (solar collection and electrical power conversion) has fallen by 17% or $1.30 per watt, from 2009 to 2010, with similar results from January through June 2011.”

Factors are:

1. A drop in wholesale costs from the manufacturing of the PV modules (approximately $.50 per watt).
2. A down economy which has caused the decreasing “non-module” cost, such as: marketing, inverters, hardware required to install, freight and labor to install.

These factors account for another $.60 per watt decrease in overall solar power system costs to the consumer.

The report also show that larger systems (1,000 kw and larger) decreased 47% less than smaller systems.  The larger the system, the more contracting firms are willing to give up to get the job.

The positive note is unfortunately offset by State and Federal Government incentive programs.  The average State and utility companies cash incentives declined $.50 per watt, while Federal tax credits also fell between 2009 and 2010.

Credits:  Lawrence Livermore National Laboratory Report

Electrical contractor Report, by: Rick Laezman, Nov 11,2011