Paying a good price for solar systems requires policy subsidies as well as local market differences together with supply chain effectiveness. The example of China’s 2023 household PV subsidy policy of 0.08 yuan/KWH reduces the cost of the entire 10kW system to 38,000 yuan (12,000 yuan lower than unsubsidized) and reduces the investment payback time to 6 years (IRR 15%). After the federal tax credit (ITC 30%) and state rebates, the net expenditure of having a Tesla Solar Roof (10kW) fitted for a home in California was reduced from $42,000 to $26,000, and the annual electricity bill saving was $1,800. In Germany, using KfW low interest loans (0.5% interest rate) and EEG subsidies, the roof PV levelised cost (LCOE) has been reduced to €0.07 /kWh, 42% less than grid electricity price (Fraunhofer ISE data). If the user locked up Best price on solar system, preference should be given to China, Southeast Asia and other photovoltaic manufacturing cluster regions, and the factory price of monocrystalline silicon modules (550W) can be merely 0.15 US dollars /W (0.23 US dollars /W in the European market).
Regional supply chain optimization is a significant factor for the end price. In 2023, vertically integrated companies (like Longi and Jinko) will enjoy 18%-25% lower unit costs compared to OEM versions as a result of in-house production of the entire chain of silicon wafer-battery-components. Consider the Indian market, for instance. After choosing imported components from China ($0.16 /W) plus 6.5% tariff, it is still 12% cheaper compared to local manufacturing. Seaborn cost volatility (a peak of US $30 / m3 in 2022 compared to US $8 / m3 in 2024) resulted in a component CIF spread of US $0.04 /W between the West Coast of the United States and Southeast Asia. In addition, US First Solar’s cadmium telluride thin film modules (19.6% efficiency) are 10% cheaper than foreign-imported crystalline silicon products since they avoid double reverse tariffs (Wood Mackenzie report).
Technological innovation and large-scale production drive costs down. TOPCon battery large-scale production efficiency was more than 25.8% in 2024, 1.5 percentage points higher than PERC, but its cost per watt increased by only $0.02, the entire life cycle power generation benefit was 7%, and the LCOE decreased by $0.01 /kWh. A photovoltaic poverty alleviation project located in China uses 182mm size silicon wafers (upgraded by 23W/piece), and through that saves the cost per individual watt 0.03 yuan and adds up to reducing the entire cost by 12%. If customers wait until perovskite technology becomes commercially available (28% efficient in 2026), the initial system cost will be 15% more expensive, but generation revenue will be 31% higher over a 30-year period (NREL model).
Installer competition and business model innovation slash costs further. According to data from the US EnergySage platform, customers who get over 3 quotes in 2023 will save 9% on average, of which SunPower will offer 10kW system quotes 15% lower than industry average due to its own in-house installation team (20% lower than outsourcing). Germany’s E.ON presented the “Solar as a service” (no down payment, 49-euro monthly premium) model, through scale purchase to reduce module cost to 0.18 euros /W (retail market 0.25 euros /W). A group purchase in Australia (over 50 families) can have an additional 8% discount, and following the addition of state government rebates, the net investment for 6.6kW system is only 6800 Australian dollars (the regular price of 11,000 Australian dollars).
Secondary markets and energy trading websites are new price suppressions. Used components of the European platform PVXchange (efficiency reduction ≤5%) are sold for as low as $0.10 /W, and the system price overall is reduced by 25% with the new inverter. According to SolarReviews statistics, customers on the grid with virtual power plants (VPP) in 2023 will increase their incomes from selling electricity by 22% (i.e., Tesla Powerwall that is participating in California SGIP program and will receive a subsidy of $1,200 per year). If the users accurately pair the Best price on solar system, they can concentrate on China’s “June 18” and “Double 11” e-commerce promotion (component time-limited discount of 12%), or the German electricity auction market (the lowest bid price of 0.046 euros /kWh in 2023) to obtain the global optimal solution of initial investment and long-term return.