Break-even Price Estimates for Residential PV Applications in DECD Countries with an Analysis of Prospective Cost Reductions

  • Daniele Poponi
  • John Byrne
  • Steven Hegedus


This paper assesses the prospects for cost reductions of grid-connected photovoltaic (PV) systems to the estimated break-even price of S2.5/Wp. At this price, PV technology could become cost-competitive without incentives for building-integrated applications m residential sectors of most industrialized countries. Significant reductions in the manufacturing costs of modules and inverters can be achieved by increasing production volumes or through technological innovation, e.g., by using less expensive materials. PV system costs can also be reduced by PV yield optimization, by increasing availability of a skilled labour force, and through design and construction innovations.