Solar photovoltaic (PV) system prices in the United States are considerably different both across geographic locations and within a given location. Variances in price may arise due to state and federal policies, differences in market structure, and other factors that influence demand and costs. This paper examines the relative importance of such factors on the stability of solar PV system prices in the United States using a detailed dataset of roughly 100,000 recent residential and small commercial installations. The paper finds that PV system prices differ based on characteristics of the systems. More interestingly, evidence suggests that search costs and imperfect competition affect solar PV pricing. Installer density substantially lowers prices, while regions with relatively generous financial incentives for solar PV are associated with higher prices.

DateDecember 2014                                                                                                                                                                                                                          
TopicFinancing, Incentives and Market Analysis
SubprogramSoft Costs
AuthorLawrence Berkeley National Laboratory

http://emp.lbl.gov/publications/deconstructing-solar-photovoltaic-pricing-role-market-stucture-technology-and-policy