Economic competitiveness of U.S. utility-scale photovoltaics systems in 2015: Regional cost modeling of installed cost ($/W) and LCOE ($/kWh)

Abstract

Utility-scale photovoltaics (PV) system growth is largely driven by the economic metrics of total installed costs and levelized cost of electricity (LCOE), which differ by region. This study details regional cost factors, including environment (wind speed and snow loads), labor costs, material costs, sales taxes, and permitting costs using a new system-level bottom-up cost modeling approach. We use this model to identify regional all-in PV installed costs for fixed-tilt and one-axis tracker systems in the United States with consideration of union and non-union labor costs in 2015. LCOEs using those regional installed costs are then modeled and spatially presented. Finally, we assess the cost reduction opportunities of increasing module conversion efficiencies on PV system costs in order to indicate the possible economic impacts of module technology advancements and help future research and development (R&D) effects in the context of U.S. SunShot targets.