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The cost of installation, "balance of systems" equipment, such as inverters, and financing and permitting costs are well over half of the total now.
"A lot of the innovation companies are talking about is less on the solar module side, and more about balance of systems and financing," says Shyam Mehta, a senior analyst at GTM Research.
I am impressed that the Energy Department seems to be attacking the balance of systems and transaction costs associated with rooftop photovoltaics, where a diminishing fraction of the costs are associated with panel manufacture.
The 'Solar PV system' and 'Solar HW system' sections provide the performance of the respective panels and balance of systems (BOSs).
Since inception, we have achieved a substantial reduction in total solar project cost, which includes a significant decrease in balance of systems costs due in part to our value engineering, design and procurement efforts.
The cost of c-Si PV has fallen to the point that the balance of systems (BOS) and thus the efficiency of the modules plays a major role in the levelized cost of electricity for solar [5].
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To achieve this, maximum performance from the solar cells should be obtained, while minimizing the cost of balance-of-system.
In the United States, non-module or balance-of-system (BOS) costs account for some 65% of the price of utility-scale PV installations and about 85% of the price of the average residential rooftop unit.
The effort will also target "balance-of-system": the parts of solar installations apart from solar cells.
QBotix and other innovative companies in solar financing are seeking to lower the price of solar by attacking these "balance of system" costs.
Installation costs are most of what's known as "balance of system", the difference between the total cost and the cost of the panels.
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