Pricing method for photovoltaic modules

Dramatic falls in the cost of energy from solar PV have been driven by the increasing cost competitiveness of the PV module itself, with crystalline silicon (c-Si) PV the dominant technology. In the last decade, the installed capacity of PV modules has grown by an order of magnitude.

Solar energy pricing comprising of cost of its components, mainly of PV, installation, and handling cost. Solar PV module costs account for only around 20% of solar. Thus, financing costs account for the largest component—over 50% of solar energy tariffs.

1. Cost Factors Driving Price Fluctuations The cost of photovoltaic modules is primarily composed of solar cells, glass, encapsulation film, and labor expenses.

NREL's solar technology cost analysis examines the technology costs and supply chain issues for solar photovoltaic (PV) technologies. This work informs research and development by identifying drivers of cost and competitiveness for solar technologies.

For module prices, learning rates of 20%, 30% and 40% were combined with three projected growth scenarios and utility PV system total costs predicted to 2050. While specific prices for modules are not given, it is noted that this approach leads to a ± 40% uncertainty in module price due to volume alone.

Importation duties, oversupply, and supply chain costs have led to significant solar module pricing volatility, particularly since the start of 2023. New technology is rapidly evolving improving efficiencies with the market seeking more clarity around the changing prices of solar modules.