A comprehensive approach to assessing PV system economics and opportunities for PV policies

Abstract : The price of PV modules has fallen below $1/Wp in many countries. Non-module prices have become critical factors to assessing PV system economics. This study sets out to review the price of residential PV systems in a comprehensive manner while looking for cost drivers to improve their economic competitiveness. The relation between the market size and price drop in the non-module sector is reviewed in this paper. In addition, this article investigates opportunities for using policy instruments to help reduce non-module costs of PV systems in Europe (e.g. standardization, etc.). In doing so, it shows how harmonized policy instruments on a regional level can reduce non-module prices of residential PV systems in Europe by benefiting from the experience of German practice (e.g. low nonmodule prices) and the size of the European market.