These data are from August 2001. Currently Residential system prices average $4.00/Wp are only possible with module prices that are too low.  PV c-Si and TF technologies need to make a margin sufficient to continue innovating.  Recovery is crucial.

Labor is a variable and tends upward in cost (if you want qualified labor) and is typically not something a system integrator/developer can control.  Unfortunately, permitting is also a variable (region by region, US state by US state). 

Innovations in BoS, System design and installation and crucially, standardization of permitting and other soft costs are necessary. 

GRID-CONNECTED SYSTEM ECONOMICS*

 

Assumptions

Arithmetic

PV   system cost, per installed kWp

$4,500   (after 50% California state rebate)

Financed   as a first mortgage

7%   over 30 years – $359.98/year, or $29.99/month

Property   tax on actual value ($9,000)

1.1%   – $99/year, or $8.25/month

Federal   and state   tax brackets

31%,   9.3%

State   income tax, property tax deducted from federal income tax

$118/year,   or $9.83/month

Net   cost per installed kW

340.98/year,   or $28.41/month

Per   kWp installed (Northern California to   Southern California)   approximately 130 to 150 kWh per kWp installed

@   4.3 kWh/day/kWp Northern California –

$28.41/130     = 22¢/kWh; @ 5.0 kWh/day/kWp Southern California – $28.41/150 =   19¢/kWh