U.S. Solar PV Market — Prices Go Up, Prices Go Down

The National Renewable Energy Laboratory has released its annual cost breakdown of installed solar photovoltaic and battery storage systems.

The inflation-adjusted cost benchmark rose in 2023 for utility-scale PV systems but fell for residential PV systems owing to recent trends in network upgrade costs, Inflation Reduction Act manufacturing tax incentives, and other cost drivers, modeled market prices for installed residential PV systems were 15% lower this year.

Inflation Reduction Act Manufacturing Tax Incentives Are Likely Affecting PV and Storage System Costs Costs for installing community solar resemble the costs of installing a commercial PV system for a single customer, with two distinctions. Community solar systems incur more initial costs to acquire numerous residential and commercial subscribers, and they incur ongoing costs of subscriber management, including bill management as well as marketing and customer acquisition to manage customer turnover.

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