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Renewable Energy Technologies: Cost Analysis Series - Solar Photovoltaics

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This, the fourth installment of the Renewable Energy Technologies Cost Analysis Series, finds that the cost of solar photovoltaics (PV) for power generation is rapidly declining. The installed cost of a PV system varies from country to country and even within countries depending on a variety of factors. Utility-scale systems are generally enjoying lower capital costs than residential systems, but this is not always the case. The report finds that the levelized cost of energy (LCOE) from solar PV power ranges from USD 0.25 - 0.71/kWh for residential systems and from USD 0.26/kWhto 0.59/kWh for utility-scale systems. This LCOE is still relatively high, but competitive in some markets with good solar resources. The potential for lower costs is very good, although due to the very rapid rate of capacity installation, the rate of cost reduction is difficult to estimate.