Investment in developing solar energy, including rooftop solar power, is one of the solutions contributing to struggle against climate change by reducing greenhouse gas (CO2), to decreasing load for power plants of power sector, supplying electricity for daily life and production of people with the benefits in reducing pressure on the distribution power grid and saving costs for developing transmission power grid.
Even the cost of installation is far much better than a few years ago, it is still a big investment and it is crucial that you need to have a solid understanding of all cost involvement to determine financial returns. Especially when you can see the range cost offering differently at market. Thus, in this article, Xanh La Solar will give you some ideas of all the cost associated with a PV System.
There are two general categories of PV systems cost: Capital Costs (CAPEX) and Operation & Management Costs (OPEX).
Capital Costs refer to a fixed and one-time cost of designing and installing the system which is categorized into hard costs and soft costs.
Hard costs are the cost of the PV module cost, the Balance of System cost (BOS) and installation-related labor. Soft costs normally includes intangible cost such as permitting, taxes,…
The total installed cost of a PV system will vary from many factors such as quality of components, project location, scale size, roof layout…An experienced rooftop solar developer can do all the cost analysis needed to have a high return proposal for investors.
O&M Costs refer to costs that are associated with operating and maintaining the system. These can include periodic checks for ensuring optimal performance and safety, repair, operation personnel. PV systems generally have low O&M costs.
Beside the two main cost above, you will see a few incentives and policies in place to make PV system financially competitive such as tax credit which benefit investors for their tax income, net energy metering (NEM) that allows consumers to sell excess electricity to Utility.
Finally, in order to make your investment worth, make sure to spend time to compare, analyze some proposals from different developers or EPC.