The Global Solar Photovoltaic Supply Chain and Bottom-UP Cost Model Results
Conclusions
• Market price is expected to lower or higher than minimum sustainable price
(MSP) during periods of oversupply or undersupply. These are common symptoms
for PV. Therefore, MSP is an important metric for long-term technology planning
and regional costs comparisons.
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Significant capital investments and skilled engineers are required to establish
successful new manufacturing endeavors. Timelines are 6 months to four years,
depending upon the step in the supply chain.
• Variations in MSP are to be expected due to uncertainty in input data. Variable
labor ($/hr) and electricity rates ($/kWh) are currently believed to be the greatest
source of differences in regional PV manufacturing costs. Variations are also
expected for delivery of input materials and equipment.
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• The recently passed Inflation Reduction Act presents many opportunities for
accelerated demand and manufacturing within the United States.
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