Along with continuing module efficiency improvements, these advances will make the levelized cost of electricity (LCOE) for solar between $0.04/kWh and $0.08/kWh cheaper in 2020 than it is today. “Balance-of-systems costs are in developers’ crosshairs as the pressure to reduce costs extends downstream. Incremental cost reductions from racking and mounting, coupled with innovative system electronics changes, will accelerate system cost reductions and help reduce LCOE,” said Matthew Feinstein, Lux Research Senior Analyst and the lead author of the report titled, “The Squeeze: Trends in Solar Balance of Systems.” “Project volumes will also continue to drive M&A activity in the BOS industry, with plenty of opportunity for new entrants,” he added. Lux Research analysts evaluated the factors driving BOS cost reductions in varied geographies and application segments. Among their findings: Residential segment is poised for biggest gains. By 2020, residential BOS costs are set to drop more than any other application segment, driven largely by cuts in labor costs, thanks to ever-increasing adoption of time-saving best practices. Commercial systems will see cost reduction due to new, lower-cost racking and mounting hardware. Thin-film systems’ costs fall fastest for utility scale solar. Standard utility-scale BOS costs fall fastest for CdTe systems, thanks largely to increasing module efficiency lowering the cost of racking and mounting hardware on a per-watt basis. solarthermalmagazine/2014/02/10/balanceofsystems-drives-solar-system-capex-30-2020/
Posted on: Wed, 13 Aug 2014 10:10:31 +0000