Documenting a Decade of Price Declines for PV Solutions

Feb 19, 2021 01:20 PM ET
  • NREL Marks Ongoing Price Reductions for Installed Photovoltaic Equipments, While Likewise Developing Benchmark of PV-Plus-Storage Equipments

The National Renewable resource Laboratory's (NREL's) U.S. Solar Photovoltaic System and Energy Storage Expense Benchmark: Q1 2020PDF is currently available, recording a decade of price reductions in solar and battery storage setups throughout energy, industrial, and also property industries. NREL's cost benchmarking uses a bottom-up approach that catches variation in system design and regional prices, aiding to identify future research and development instructions that can even more minimize prices.

The last decade has actually shown a sharp, though currently steadying, decrease in expenses, driven greatly by photovoltaic (PV) module efficiencies (now 19.5%, up from 19.2% in 2019) and equipment and inverter costs. Because 2010, there has been a 64%, 69%, as well as 82% reduction in the cost of property, commercial-rooftop, and also utility-scale PV systems, specifically. As in previous years, soft expenses stay a huge as well as relentless part of installment expenses, for both solar and storage systems, as well as especially for commercial as well as domestic systems.

" A substantial section of the cost declines over the past decade can be attributed to an 85% expense decline in component price. A years ago, the component alone set you back around $2.50 per watt, and also now an entire utility-scale PV system costs around $1 per watt," claimed NREL Senior Financial Expert David Feldman. "With similar reductions in hardware costs for storage systems, PV and storage have become significantly extra budget-friendly power sources across the nation."

Broadening Extent to PV Plus Storage

This year's benchmark report incorporates PV-plus-storage costs, demonstrating that these likewise dropped from the initial quarter of 2019 to the first quarter of 2020. The new benchmark includes differing hrs of storage capacities, showing varied client preferences for durability.

Furthermore, NREL has actually computed the levelized cost of solar-plus-storage (LCOSS), which tracks the total price of running a PV-plus-storage plant on a per-megawatt-hour basis. LCOSS was used to establish a 2020 benchmark of PV-plus-storage systems as well as will serve for determining future objectives similarly that the U.S. Department of Power Solar Power Technologies Office (SETO) has actually developed PV rate targets.

Tracking SETO Targets

In 2010, SETO announced unsubsidized PV price targets for 2020. Per this year's benchmarking, household and commercial systems are 93% as well as 97% towards attaining the 2020 targets of 10 cents per kilowatt-hour (kWh) and 8 cents/kWh, specifically. Utility systems, which satisfied 2020 cost targets 3 years early, are progressing towards SETO's 2030 target for energy systems of 3 cents/kWh.

In quest of 2030 targets, the benchmark report notes that company advancements, collaborations, and continued R&D will be required to lower expenses further. Although soft expenses-- such as labor, interconnection with the electrical grid, earnings, as well as overheard-- commonly control current system costs, renovations in one location frequently affect others, such as high-efficiency components decreasing labor and also material costs by calling for much less items mounted. Future expense decreases could be achieved from a combination of improvements.

You can download the reportPDF, together with a coming with slide deckPDF, and a public variation of the underlying information collection.

The report writers will certainly additionally sum up vital findings from the report by means of webinar on Feb. 24, 2021, at 12 p.m. ET/10 a.m. MT.

 

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