With the planned federal Investment Tax Credit step-down on the horizon, utility project developers and EPCs are turning over every rock in search of cost reductions. In its latest report, PV Balance of Systems 2015, GTM Research uncovers the most significant areas for solar PV cost reductions over the next five years.
As of the second quarter of this year, GTM Research’s modeled turnkey cost of a fixed-tilt utility system is $1.49 per watt, down from $1.58 per watt in the first quarter of the year. Modules represent 45 percent of that cost, and balance of systems encompass the remaining 55 percent.
Report author MJ Shiao notes that cost reduction isn’t going to come just from big ticket items like 1500-volt systems and higher module efficiencies. Rather, many small optimizations will ultimately drive system costs toward $1.00 per watt.
