U.S. solar PV system costs fell across all market segments from 2019 to 2020 as module prices continued to drive system costs down. While shortages of glass and ethylene-vinyl acetate laminate caused solar module prices to increase at the end of 2020, module prices still fell on a year-over-year basis.
According to Wood Mackenzie’s recently released U.S. solar PV system price report, average 100-megawatt utility-scale system costs in 2020 are $0.94/W, with the potential to fall 19% by 2025 (all watt figures shown are DC). These costs will fall 13% from 2021 to 2022, driven by module price reduction as Section 201 tariffs are expected to phase out for imported products.