By Seth Masia
SOLAR TODAY Managing editor
I've had conversations recently with homeowners, MBA students and college professors who want to know "What does a photovoltaic system cost?"
It's a complex issue. The price a homeowner pays for a PV system depends on the worldwide price of silicon, the competitive scene in module distribution, local costs for labor and construction materials, and the competition in the local installer market. The net price depends on local rebates, incentives, tax credits, feed-in tariffs and possibly on the market value of renewable energy credits. The long-term value of the investment depends on the rate of utility inflation, the cost of borrowing money and the homeowner's tax brackets. There's no simple answer, and the answer can change from day to day as prices and incentives ramp up and down.
Lots of online tools and spreadsheets are available for doing all these calculations. For a number of years ASES has made available its own solar calculator, which you can find at findsolar.com/index.php?page=rightforme Recently we posted a spreadsheet created by Ron West, a retired professor at the University of Colorado, which you can download at solartoday.org/costofsolar (find links to a variety of calculators there, too, including the excellent tools created by the U.S. Department of Energy and the California Consumer Energy Center).
There are problems. These tools are only as good as the values you plug in. In some cases they ask for information we can only guess at: the future rate of inflation, for instance, and interest rates. Some of the information needed is based on market conditions, and the only way you can get it is to call around to local installers and find out what they're charging now. Sometimes they won't answer without doing a formal estimate.
A year ago, a typical system sold for $8 to $10 per watt, installed, before rebates and incentives. Today, a local installer tells me, quotes can come in anywhere from $9 per watt for top-of-the-line equipment to $4.50 per watt with bargain-basement gear in a very competitive locale. Installers don't bother buying big lots of modules right now, because the price may be lower next week. It would be nice if the on-line tools could get equipment prices in real time, but they're not plugged into the inventory systems at factory warehouses.




Seth Masia
Liz Merry