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What Does Solar Really Cost?

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A new report aims to look at the real cost of achieving grid parity.
A new report from Photon Consulting looks at how the three segments of the solar industry, c-Si modules, thin film modules and BOS, are all racing toward cost structures of $1/W. The report discovers that many observers and participants of the industry are concerned about the performance of some companies. The report entitles The True Cost of Solar Power: Race to $1/W, aims to provide a roadmap of the benchmarks and cost structures that matter for the solar industry and companies through 2012.



At the sector level, the most important issue the report raises after three years of cost benchmarking research is that the “true cost “of solar power is remarkably low even now. Today, the average cost of a c-Si module is well below $2/W, with the fully-loaded cost of a system below $4/W. This equates to an electricity cost, without incentives, of less than $0.20/kWh in sunnier environments. Best practice is already far below this level, and the emergence in the next three years of cost structures of $1/W at the module plus $1/W at the BOS levels will enable the cost of solar electricity below $0.10/kWh.



At the corporate level, the most important finding is that a select group of companies, including First Solar, LDK Solar, Q-Cells, REC, SolarWorld, SunPower, Suntech, Yingli and others, have emerged as low-cost leaders in the race. This report provides detailed cost analysis for hundreds of solar companies in-depth coverage of more than 20 cost leaders and potential cost leaders.


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