# BOS Solar Cost Analysis and Breakdown

- Link: https://greenlivingguy.com/2013/01/bos-solar-cost-analysis-and-breakdown/
- Published: 2013-01-07T14:41:01-05:00
- Author: greenguruguides

## 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 .

![Donut chart showing balance of system bos costs at 68 and solar module costs at
32 of total photovoltaic system pricing based on gtm research 2012 data](https://
i0.wp.com/greenlivingguy.com/wp-content/uploads/2013/01/D0AC6FA9-5C5E-4C0E-9C77-
B4C242A4F1B6.png?resize=780%2C780&quality=50&ssl=1 "BOS costs - The Green Living
Guy")

Ai image

### 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](https://greenlivingguy.com/2011/05/westford-solar-park-new-englands-solar-giant/),
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)

[http://globenewswire.com/news-release/2012/11/15/505592/10012794/en/Solar-PV-BOS-Now-Accounts-for-68-Percent-of-Average-PV-System-Pricing-According-to-New-GTM-Research-Report.html](http://globenewswire.com/news-release/2012/11/15/505592/10012794/en/Solar-PV-BOS-Now-Accounts-for-68-Percent-of-Average-PV-System-Pricing-According-to-New-GTM-Research-Report.html)

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 greenguruguides

 The Green Living Guy, Seth Leitman, is recognized as a green living guru and electric
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