As part of PV Magazine's coverage of SPI in Dallas, they write this:

While the price per kilowatt of installed output for solar parks in Germany has declined to as much as 1,500 euros (USD$2,065), in the U.S. this figure, according to EUPD Research, is on average $3,500. And the difference in prices for smaller installations in the residential sector is even greater. In Germany prices fell to even 1,900 euros ($2,615) per kilowatt of installed output, while in the U.S. they are $6,340 per kilowatt on the average, according to EUPD.

Now, I did know that PV prices in Germany are among the lowest, but why is PV - especially the residential sector - in the US so much more expensive?

Now, I did know that PV prices in Germany are among the lowest, but why is PV - especially the residential sector - in the US so much more expensive?

Well, good question.

I must say, that I do not know the answer either. But I can imagine, that this fact depends on different market conditions between Germany and the U.S.:

In Germany...
... there is a relatively higher demand for PV (especially from the residential sector) than it is in the U.S. One of the reasons for this fact might be the german FIT. So, from a suppliers perspective, it makes more sense to jump into markets with an higer demand. If many suppliers think this way, supplied material (modules and inverters) is relatively higher than it is in the U.S.

In the U.S. ...
... green energy (and especially PV) is not experiencing the same popularity as in Germany. Especially not in the residential sector. "Green thinking" in the U.S. has not developed the same way it did in Germany over the past years. Further government subsidy (for residentials) is not that high as it is in Germany. Consequently there is a lower demand (relatively) from the residential sector and that's why the U.S. pv-market is not as attractive than the european (espescially the german and italian) market (for suppliers).

The things are a bit different when we talk about the industrial sector. The share of industrial pv-investments is in the U.S. way higher than in Germany. With this fact, togehter with my ideas above, I would explain the lower price differences in the industrial sectore compared to the residential sector.


I know it might be not easy to follow my ideas, but I do'nt know another way to explain it.

kind regards
valentino

renewables are becoming a factor in the US. In so far I expect a growing market and dropping prices for 2012.

Loca