The median system price of large-scale utility-owned PV systems in 2023 was $1. 27/Wac—relatively flat since 2018. 8/Wdc—in-line with mid-2020 price levels. Department of Energy (DOE) Solar Energy Technologies Office (SETO) and its national laboratory partners analyze cost data for U. These benchmarks help measure progress toward goals for reducing solar electricity costs. 2024 ATB data for commercial solar photovoltaics (PV) are shown above, with a base year of 2022. The base year estimates rely on modeled capital expenditures (CAPEX) and operation and maintenance (O&M) cost estimates benchmarked with industry and historical data. The focus is on ground-mounted systems larger than 5M AC, including photovoltaic (PV) standalone and PV+battery hybrid projects (smaller projects are covered in Berkeley Lab's.
Market analysts routinely monitor and report the average cost of PV systems and components, but more detail is needed to understand the impact of recent and future technology developments on cost. Consequently, benchmark systems in the utility-scale, commercial, and residential PV market sectors are evaluated each year.
How much does a PV system cost in 2023?
The median system price of large-scale utility-owned PV systems in 2023 was $1.27/Wac—relatively flat since 2018. The median price for residential PV systems reported by EnergySage increased 6.3% y/y to $2.8/Wdc—in-line with mid-2020 price levels. Decreased 8% to $1.14/Wdc for systems 5 MW+.
What is PV system cost model (pvscm)?
The total cost over the service life of the system is amortized to give a levelized cost per year. In the PV System Cost Model (PVSCM), the owner's overnight capital expense (cash cost) for an installed PV system is divided into eight categories, which are the same for the utility-scale, commercial, and residential PV market segments:
Currently, CAPEX—not levelized cost of energy (LCOE)—is the most common metric for PV costs. Because of different assumptions in long-term incentives, system location and production characteristics, and cost of capital, LCOE can be confusing and often noncomparable for different estimates.