Snowmass, CO – Today, Rocky Mountain Institute (RMI) announced its new report, “Achieving Low-Cost Solar PV: Industry Workshop Recommendations for Near-Term Balance of System (BoS) Cost Reductions,” which indicates that an improvement of ~50 percent over current balance of system cost best practices is readily achievable.
"Our report shows that with industry collaboration, a substantial improvement over current best practices looks technically possible, with total BoS costs in the $0.60-0.90/watt range for rooftop and ground-mounted systems," said Sam Newman, RMI Consultant.
Solar PV balance of system costs (all costs except the PV module) represents over half of the total installed cost of solar PV. Reducing these costs offers a significant opportunity to bring solar PV into the conventional electricity price range.
These recommendations stem from RMI’s June 2010 “PV Balance of System Charrette,” held in San Jose, Calif. There, over 50 industry and design experts collaborated on BoS cost-reduction opportunities for commercial and small utility PV systems.
"BoS cost reductions are dependent on 'coopetition,' said Robin Shaffer, Vice President of Sales and Marketing at SunLink Corporation. "The charrette allowed us to overcome barriers and cross competitive boundaries and come together to bring down the levelized cost of solar electricity."
In the report, RMI proposes several recommendations to overcome industry silos and barriers to optimized design, streamlined business processes and industry scaling. In addition, the report outlines how, due to industry fragmentation and the absence of a “silver bullet” technology solution, transformational change in solar BoS requires a dedicated, industry-wide effort to enable and accelerate cost-reduction opportunities.
Minimize Levelized Cost through Optimized Physical Design
The report offers several structural and electrical designs that can reduce overall costs while maintaining necessary flexibility.
“Previously, many U.S. installation companies did not take into account the importance of the racking system’s structural design and how it is critical to enhancing the efficiency of the overall PV package,” said Mr. Sven Kuenzel, vice president of sales and marketing at Schletter Inc. “Much can be learned from established PV markets by applying proven engineering requirements, as well as increased component pre-assembly, ultimately serving to better stream line the process in the United States.”
Reduce Cost and Uncertainty through Efficient Business Processes
The report explores ways to make these processes less time-consuming, more streamlined and less expensive while decreasing project risk.
"Costs to the consumer remain high because the industry is hedging against the risk of an un-standardized and inefficient business process," said Doug Payne, executive director of SolarTech. "If we can eliminate risk and provide consistency and predictability, the solar industry will scale much more quickly."
Ensure Growth and Maturation through Industry Scale
As the solar industry grows, there is great potential to adopt best practices from other large, commoditized industries. The report looks at how standardizing components and processes, and leveraging high-volume, lean manufacturing will decrease BoS costs.
"Getting solar to a scale where it can compete can be done with current technologies. We have all the right components, we just need to eliminate waste in the system," said Stephen Doig, Program Director at Rocky Mountain Institute.
To view specific recommendation and next steps, download the full report, executive summary, or summary presentation at http://www.rmi.org/rmi/SolarPVBOS
The charrette was sponsored by Delta DelSolar, U.S. Department of Energy, Nationale Postcode Loterij, Rio Tinto, Fred and Alice Stanback and supported by technical sponsors Autodesk and Munro & Associates.
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About RMI
Founded in 1982, Rocky Mountain Institute® (RMI®) is a non-profit organization whose mission is to drive the efficient and restorative use of resources. RMI is an international leader in identifying and catalyzing breakthroughs in energy efficiency and renewable energy. Our work is geared toward our vision of a world thriving, verdant, and secure, for all, for ever. RMI’s strategy is to transform the ways that we design and operate our transportation and electrical system, built environment and the industries that support our modern society. For more information, visit www.rmi.org.
"Our report shows that with industry collaboration, a substantial improvement over current best practices looks technically possible, with total BoS costs in the $0.60-0.90/watt range for rooftop and ground-mounted systems," said Sam Newman, RMI Consultant.
Solar PV balance of system costs (all costs except the PV module) represents over half of the total installed cost of solar PV. Reducing these costs offers a significant opportunity to bring solar PV into the conventional electricity price range.
These recommendations stem from RMI’s June 2010 “PV Balance of System Charrette,” held in San Jose, Calif. There, over 50 industry and design experts collaborated on BoS cost-reduction opportunities for commercial and small utility PV systems.
"BoS cost reductions are dependent on 'coopetition,' said Robin Shaffer, Vice President of Sales and Marketing at SunLink Corporation. "The charrette allowed us to overcome barriers and cross competitive boundaries and come together to bring down the levelized cost of solar electricity."
In the report, RMI proposes several recommendations to overcome industry silos and barriers to optimized design, streamlined business processes and industry scaling. In addition, the report outlines how, due to industry fragmentation and the absence of a “silver bullet” technology solution, transformational change in solar BoS requires a dedicated, industry-wide effort to enable and accelerate cost-reduction opportunities.
Minimize Levelized Cost through Optimized Physical Design
The report offers several structural and electrical designs that can reduce overall costs while maintaining necessary flexibility.
“Previously, many U.S. installation companies did not take into account the importance of the racking system’s structural design and how it is critical to enhancing the efficiency of the overall PV package,” said Mr. Sven Kuenzel, vice president of sales and marketing at Schletter Inc. “Much can be learned from established PV markets by applying proven engineering requirements, as well as increased component pre-assembly, ultimately serving to better stream line the process in the United States.”
Reduce Cost and Uncertainty through Efficient Business Processes
The report explores ways to make these processes less time-consuming, more streamlined and less expensive while decreasing project risk.
"Costs to the consumer remain high because the industry is hedging against the risk of an un-standardized and inefficient business process," said Doug Payne, executive director of SolarTech. "If we can eliminate risk and provide consistency and predictability, the solar industry will scale much more quickly."
Ensure Growth and Maturation through Industry Scale
As the solar industry grows, there is great potential to adopt best practices from other large, commoditized industries. The report looks at how standardizing components and processes, and leveraging high-volume, lean manufacturing will decrease BoS costs.
"Getting solar to a scale where it can compete can be done with current technologies. We have all the right components, we just need to eliminate waste in the system," said Stephen Doig, Program Director at Rocky Mountain Institute.
To view specific recommendation and next steps, download the full report, executive summary, or summary presentation at http://www.rmi.org/rmi/SolarPVBOS
The charrette was sponsored by Delta DelSolar, U.S. Department of Energy, Nationale Postcode Loterij, Rio Tinto, Fred and Alice Stanback and supported by technical sponsors Autodesk and Munro & Associates.
###
About RMI
Founded in 1982, Rocky Mountain Institute® (RMI®) is a non-profit organization whose mission is to drive the efficient and restorative use of resources. RMI is an international leader in identifying and catalyzing breakthroughs in energy efficiency and renewable energy. Our work is geared toward our vision of a world thriving, verdant, and secure, for all, for ever. RMI’s strategy is to transform the ways that we design and operate our transportation and electrical system, built environment and the industries that support our modern society. For more information, visit www.rmi.org.