BOS Now Makes Up 68 % of Solar PV System Costs, GTM Reports
Module Prices Plunge, BOS Costs Take Lead.
Solar PV BOS Now Accounts for 68 Percent of Average PV System Pricing, According to New GTM Research Report
GTM Research found that in 2012, solar modules and BOS (balance‑of‑system) costs split the total cost roughly evenly. However, by late 2012, BOS costs had grown to 68 %, while module costs dropped to 32 % . That represents a dramatic shift in how solar expenses are structured.
What BOS Includes
BOS covers everything but the solar panels themselves. It includes structural mounts, inverters, wiring, labor, permitting, design, and other soft costs. Meanwhile, module prices plunged thanks to manufacturing scale, putting cost‑reduction pressure elsewhere .
Why This Matters for Solar Economics
This shift also highlights a broader challenge in the solar industry—non-hardware costs are proving stubborn. While solar panels have seen massive economies of scale, BOS elements like permitting and inspections remain complex and inconsistent across regions. In the U.S., for example, permitting can vary dramatically from one municipality to another, adding both time and expense to installations. As a result, companies are investing in software tools, pre-configured hardware, and new installation methods to cut soft costs. Reducing BOS costs isn’t just about tech—it’s about simplifying every step from design to delivery.
With modules now relatively cheap, future price drops will rely heavily on BOS efficiency and innovation. For instance, GTM projects annual BOS cost reductions of $0.07–$0.08/W—about 5% to 6% per year—from 2012 to 2016. This reduction will require better integration, leaner supply chains, and streamlined labor.
Global and Market Impacts
This trend shapes the global solar industry. Companies that manufacture BOS components now face intense pricing pressure. Meanwhile, solar developers and installers must seek cost savings in labor, permitting, logistics, and design. Ultimately, BOS efficiency will play a key role in achieving grid‑parity worldwide.
📚 Sources
- GTM Research, Solar PV BOS Markets: Technologies, Costs and Leading Companies, 2013–2016 (Nov 2012) – showed BOS share rose to 68% of total PV system cost .
- GTM Research analysis projected BOS cost declines of $0.07–$0.08/W (5–6% annually) from 2012 to 2016 .
BOSTON, Nov. 15, 2012 (GLOBE NEWSWIRE)
