Prices of small PV systems in US keep falling in H1 2014

Sep 18, 2014 - In the first half of 2014 installed solar photovoltaic (PV) prices in the US for non-utility scale systems have declined by an additional 5% to 12% over 2013 figures, depending on their size, a new report indicates.

More specifically, the median installed price for residential and commercial solar systems in some of the larger state markets has fallen by between USD 0.20 (EUR 0.15) and USD 0.50 per watt depending on their sizes. The Tracking the Sun study, prepared by the Lawrence Berkeley National Laboratory, summarises trends in the installed price of US grid-connected PV systems in the period 1998-2013. It includes just partial data for the first six months of this year.

In 2013, installed prices in the segment decreased by USD 0.70/W year-on-year, or between 12% and 15%. Based on system sizes, median installed prices were USD 4.70/W for solar arrays of less than 10 kW, USD 4.30/W for those in the range of 10 kW to 100 kW and USD 3.90 for systems of over 100 kW.

The report points out that the reduction in PV module price is the main reason for the fall in installed system prices since 2008. In particular, the price of modules went down by USD 2.70/W between 2008 and 2013. Even after module prices stabilised in the past two years, installed system prices are continuing their drop helped by the reduction in non-module costs, including inverters, mounting hardware, labour, permitting and fees as well as others items.

Non-module costs for systems below 10 kW in the US decreased by about USD 3.00/W in 1998-2013.

The study also compares median installed price of residential PV installations in 2013 in the US and a number of European countries. It turns out that the price is the highest in the US at USD 4.40/W, when compared to USD 2.10/W in Germany, USD 2.70/W in the UK, USD 2.90/W in Italy and USD 4.00/W in France.

(USD 1.0 = EUR 0.774)

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