By Bryan Lewis | Climate Progress
Solar power “soft” costs remain the United States’ greatest opportunity for cost reductions in solar energy deployment. These costs — which include permitting, inspection, interconnection, financing, customer acquisition, and others — represent approximately half of the total installed cost of residential solar systems, according to the National Renewable Energy Laboratory (NREL).
In order for the US to remain a serious global competitor in a future that, according to the IEA, will have renewables outpacing natural gas generation by 2016, we must encourage investment now. Contrary to claims by the Breakthrough Institute, soft cost reductions are not limited to Germany, and are possible in US markets without federal production and installation incentives.
Financing
Due to relatively high up-front capital costs, distributed generation (DG) requires sustainable, low-cost financing to compete with conventional fuels. However, there are plenty of opportunities to reduce the costs of capital without the use of German-style long-term federal incentives.
Related: Solar Leasing Gains, Costs to Federal Taxpayers Falls
If you’d like to discuss energy issues, contact Court Rich, Co-Chair of Rose Law Group’s Renewable Energy Department at crich@roselawgroup.com
