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New research by Wood Mackenzie, a well-known research institute in the United States, shows that despite the COVID-19 pandemic, the cost of solar photovoltaic (PV) systems in the United States is falling faster than expected, but the industry will have to find ways
to reduce soft costs in the future.
"Residential projects are more vulnerable to the coronavirus due to shorter project cycles
.
While large C&I and utility-scale projects are at risk of near-term price increases, the coronavirus is not expected to have a significant impact
on total system costs in 2020 in these segments.
”
This year, the cost of a system using a bifacial module (which is currently not subject to the 201 tariff) will be about 1%
lower than the cost of a single-sided PERC system.
Research analyst Molly Cox says it's all because of the tax exemption
.
WoodMac noted that engineering, procurement and construction (EPC) companies and developers will increasingly look for ways to cut the current high cost of customer acquisition, permitting and inspection, as hardware costs will decline at a slower
rate over the next decade.
With plans to reduce the Investment Tax Credit (ITC) to 26% in 2020, further downward price pressure is expected across all segments, but as industry companies have been gearing themselves up for this, drastic changes in system prices are not projected
.
Cox added: "As the solar industry will disrupt demand due to the coronavirus in 2020, we expect demand to pick up again before the end of the year and before the ITC declines in 2021
.
”
New research by Wood Mackenzie, a well-known research institute in the United States, shows that despite the COVID-19 pandemic, the cost of solar photovoltaic (PV) systems in the United States is falling faster than expected, but the industry will have to find ways
to reduce soft costs in the future.
"Residential projects are more vulnerable to the coronavirus due to shorter project cycles
.
While large C&I and utility-scale projects are at risk of near-term price increases, the coronavirus is not expected to have a significant impact
on total system costs in 2020 in these segments.
”
This year, the cost of a system using a bifacial module (which is currently not subject to the 201 tariff) will be about 1%
lower than the cost of a single-sided PERC system.
Research analyst Molly Cox says it's all because of the tax exemption
.
WoodMac noted that engineering, procurement and construction (EPC) companies and developers will increasingly look for ways to cut the current high cost of customer acquisition, permitting and inspection, as hardware costs will decline at a slower
rate over the next decade.
With plans to reduce the Investment Tax Credit (ITC) to 26% in 2020, further downward price pressure is expected across all segments, but as industry companies have been gearing themselves up for this, drastic changes in system prices are not projected
.
Cox added: "As the solar industry will disrupt demand due to the coronavirus in 2020, we expect demand to pick up again before the end of the year and before the ITC declines in 2021
.
”
