Key to Affordable Residential Solar in U.S. Is Reducing Balance-of-System Costs

BOSTON, Aug. 8, 2011 /PRNewswire/ -- While PV module manufacturers have made considerable progress driving down the cost of solar in the U.S., decreases in installer non-module costs have not kept pace, according to PHOTON Consulting's latest global solar supply-chain cost study, The True Cost of Solar Power: The Pressure's On. According to PHOTON Consulting, BOS costs now represent roughly 56–60% of total installer costs for a U.S. residential system, with the highest incurred costs coming from sales, marketing and customer support; permitting and inspection; direct on-site labor, and inverter procurement. Moreover, on a comparative basis, U.S. residential installer costs outside of California and New Jersey are now on average 55–59% higher than residential installer costs in Germany on a $/Wp basis.

"Even for residential and small commercial installers in established markets like California and New Jersey, typical all-in project costs remain 39–44% above current levels in Germany," says PHOTON Consulting consultant and co-author, Chris Bolman. "We can and must do better, and achieving that goal will require coordinated thought-leadership spear-headed by policymakers, the U.S. Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy, NGO's like Solar America Board for Codes and Standards (Solar ABCs), innovative technology and engineering solution-providers, and active market participants."

PHOTON Consulting's newest True Cost study details the latest $/W and $/kWh benchmarks for U.S. installer costs, along with data and discussions of cost at other key steps of the solar supply chain, spanning polysilicon to PV electric power. Directed toward solar-industry executives, managers, investors and other interested parties, The True Cost of Solar Power: The Pressure's On is a powerful reference tool covering all aspects of solar cost.

PHOTON Consulting has agreed to donate 2% of True Cost 2011 report sales to GRID Alternatives, a nonprofit that procures and installs solar electric systems exclusively for low-income families, while providing hands-on training and experience in the growing field of solar installation.

To view the executive summary, table of contents and purchase your copy, please visit The True Cost of Solar Power: The Pressure's On.

ABOUT PHOTON Consulting, LLC

PHOTON Consulting is the largest dedicated solar-energy research consultancy and is a leading supplier of in-depth research, management and strategic consulting services specific to the PV sector. With the deepest, broadest integrated coverage, PHOTON Consulting tracks the solar-energy sector from feedstock to factory gate to end customer in every active and emerging market. PHOTON's solar consultants model company, geographic and industry projections from the outside-in, cross checking company announcements with providers and buyers. Our PV data consists of historical and five-year forward projections for price, volume, revenue, cost, operating profit, operating margin and demand for c-Si and thin-film technologies. With the most extensive research and data in the sector, PHOTON Consulting is the source for research and analysis in solar power. For more information on PHOTON Consulting, please visit the Company's website: www.photonconsulting.com.

DISCLAIMER

PHOTON Consulting, LLC © 2011. All Rights Reserved. Disclaimer: The information and statistical data with this report have not been independently verified and we make no representations or warranty as to its accuracy, completeness or correctness. PHOTON Consulting, LLC does not accept any responsibility and cannot be held liable for any person's use of or reliance on the information and opinions contained herein.

SOURCE PHOTON Consulting