The median installed prices for distributed solar photovoltaic (PV) systems in the US declined by 5%-9% in 2015 and preliminary data from the first half of 2016 suggest prices have continued to fall.
A “state of the market” report by the Lawrence Berkeley National Laboratory, run by the US Energy Department, shows that installed prices in 2015 went down by USD 0.20/W, or 5% year-on-year for residential systems. For non-residential systems the decline was of USD 0.30/W, which translates into a reduction of 7% for smaller systems in that category, and 9% for larger non-residential projects.
“This marked the sixth consecutive year of significant price reductions for distributed PV systems in the US,” commented Galen Barbose, the lead author of Tracking the Sun report.
The price of PV modules has been relatively stable since 2012 so the continued decline in the installed price for distributed solar is attributed to reductions in other hardware costs and “soft” costs.
The improving economics of solar power with the help of the extension of the 30% federal investment tax credit (ITC) through 2019 are expected to support a continued expansion in all sectors of the US solar market over the next few years.
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