New research by the U.S. Department of Energy’s (DOE) Lawrence Berkeley National Laboratory finds strong evidence that homes with solar photovoltaic (PV) systems sell for a premium over homes without solar systems.”We find compelling evidence that solar PV systems in California have boosted home sales prices,” says Ben Hoen, the lead researcher on the study and a Principal Research Associate at Berkeley Lab. This report was also funded with support from CESA. LBNL-4476E. April 2011.

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This report provides a comprehensive summary of installed cost trends for grid-connected solar photovoltaic (PV) systems in the United States from 1998 through 2008, updating an earlier report that contained data through 2007.  The updated report is based on project-level data from more than 52,000 residential and non-residential PV systems, totaling 566 MW of capacity and representing 71% of all grid-connected PV capacity installed in the U.S. through 2008.  These data were provided by 27 PV incentive programs spanning 16 states.

The report finds that average installed costs have declined over time, from $10.8/W in 1998 to $7.5/W in 2008 (in real 2008 dollars per installed watt DC).  Importantly, average costs declined by approximately $0.3/W from 2007 to 2008, following several preceding years (2005-2007) when they remained essentially flat.  The cost reductions from 2007 to 2008 were associated with a decline in module costs, in contrast to earlier years when cost reductions were associated primarily with a decline in non-module costs.

Costs are generally lower in states with larger PV deployment programs (though exceptions exist), and international experience suggests that greater near-term cost reductions are possible, with Germany and Japan exhibiting significantly lower average installed costs for residential PV systems than the U.S.  The report finds evidence of sizable economies of scale among the PV systems in our sample, significant variation in average installed cost among states, and cost advantages for PV installed in residential new construction relative to the retrofit market.  The report also describes trends in financial incentive levels over time, by customer type and among states, and the associated impact of these trends on the net installed cost of PV for residential and commercial PV system owners after receipt of incentives.

The report can be downloaded from: http://eetd.lbl.gov/ea/emp/re-pubs.htmlA
PowerPoint presentation that summarizes key findings can be found at: http://eetd.lbl.gov/ea/emp/emp-ppt.html

Funding support for this report was provided by the U.S. Department of Energy’s Solar Energy Technologies Program, and the Clean Energy States Alliance.

From Clean Edge: "The Utility Solar Assessment (USA) Study, produced by clean-tech research and publishing firm Clean Edge and green-economy nonprofit Co-op America, provides a comprehensive roadmap for utilities, solar companies, and regulators to reach 10% solar in the U.S. by 2025.

The study finds that significantly scaling solar power in the U.S. will require the active involvement of utilities. The study delivers a to-do list for the three key stakeholders in the nation’s solar industry. Among others, the action items include:

• For utilities: Take advantage of the unique value of solar for peak generation and alleviating grid congestion; implement solar as part of the build-out of the smart grid; and adapt to new market realities with new business models.
• For solar companies: Bring installed solar systems costs to $3 per peak watt or less by 2018; streamline installations; and make solar a truly plug-and-play technology.
• For regulators and policy makers: Pass a long-term extension of investment and production tax credits for solar and other renewables; establish open standards for solar interconnection; and give utilities the ability to "rate-base" solar.

The USA Study also reports that:

• For the first time solar power is beginning to reach cost parity with conventional energy sources. As solar prices decline and the capital and fuel costs for coal, natural gas, and nuclear plants rise, the U.S. will reach a crossover point by around 2015.
• Installed solar PV prices are projected to decline from an average $5.50-$7.00 peak watt (15-32 cents kWh) today to $3.02-$3.82 peak watt (8-18 cents kWh) in 2015 to $1.43-$1.82 peak watt (4-8 cents kWh) by 2025
• Solar power offers a number of advantages over conventional energy sources. Among them, the ability to deliver energy at or near the point of use, zero fuel costs, minimal maintenance requirements and zero carbon-based source emissions.
• The investment to arrive at 10% solar in the U.S. is not small, reaching $450 billion to $560 billion between now and 2025, an average of $26 billion to $33 billion per year. However, given utilities’ existing capital costs such an investment is not prohibitive. To put the investment in perspective: Utilities spent an estimated $70 billion on new power plants and transmission and distribution systems in 2007 alone.”

To Download the Document: http://www.cleanedge.com/reports/reports-solarUSA2008.php    

This report provides an in-depth statistical analysis of PV system costs in California. Through mid-November 2005, a total of 130 MWAC of grid-connected solar capacity was installed throughout California, making that state the dominant market for PV in the United States, though it still stands a distant third on a worldwide basis behind Germany and Japan.

The results presented here are based on an analysis of 18,942 grid-connected PV systems totaling 254 MWAC, either installed, approved for installation, or waitlisted (approved but awaiting program funding) under what are currently the two largest PV programs in the state. This analysis provides insights on California’s PV market by exploring cost trends, and by untangling the various factors that affect the cost of PV systems. Results also have important policy ramifications, as they address the interaction between incentive levels and installed costs, and the relative cost of different PV applications.

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