US should follow Australia’s lead in slashing PV soft costs - RMI

July 16, 2014
Facebook
Twitter
LinkedIn
Reddit
Email

The US is lagging behind the likes of Australia and Germany in pushing down the labour costs associated with residential PV installation, a Rocky Mountain Institute study has revealed.

Following a fact-finding tour to Australia, RMI and Georgia Tech Research Institute researchers found the ‘soft’ costs of residential PV installations were US$2.19 per watt cheaper than in the US.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Under its SunShot initiative, the US Department of Energy is seeking to cut the cost of residential solar to US$1.50 by 2020. The study is intended to aid that target by finding ways of driving down the non-hardware costs of PV installations.

The study found that the installed cost of PV in Australia and Germany are both similar at US$2.56/W and US$2.21/W respectively, and nearly half the comparable cost in the US of US$4.93/W.

Of these costs, so-called soft costs, which include labour, account for US$1.20 and US$0.97/W in Australia and Germany respectively, around 50% of the total. In the US, meanwhile, soft costs amount to US$3.38/W– up to 70% of the total.

Breaking this down, the study detailed the main cost differences between Australia and the US as:

  • Customer Acquisition – $0.26
  • Permitting, Inspection, and Interconnection – $0.05
  • Installation Labor – $0.26
  • Margin, Financing, and Other Costs – $1.62

The study said that one reason for the difference was the fact that from the start the Australian PV market has been driven by strong incentives, which in turn has prompted competition among installers, forcing them to ‘lean’ their processes.

One particularly telling statistic in the study backing this up is that Australian installers can install systems, without resort to advanced technologies or processes, in around two-thirds the time per kilowatt than US installers.

Based on further analysis, RMI and Georgia Tech concluded that by following some of the methods employed in Australia, US installers could cut 2.3 labour hours per kilowatt from installation times.

This would bring the US average labour time of 9.4 hours per kilowatt down to Australia’s 7.1, helping reduce installation costs, the study said.

Karen Crofton, a principal at RMI. “The observations gleaned from Australia will help U.S. solar providers streamline their installation processes—starting today. If it can be done in Australia and Germany, there is no reason it cannot be done in the US.”

GTRI Senior Research Engineer Joseph Goodman added: “Lessons learned from these leading markets in Germany and Australia are formative for advanced residential and commercial PV racking technologies currently under development.

“Ultimately, we are looking to not only leapfrog best-in-class US systems, but also surmount these global benchmarks—helping us reach the Department of Energy SunShot cost reduction targets.”

Read Next

January 9, 2026
The Chinese Ministry of Finance and the Taxation Administration issued an adjustment of export rebate policies for solar PV products and other items.
January 9, 2026
China’s market supervision body has warned of monopoly risks in the plans to consolidate the country’s polysilicon sector.
Premium
January 9, 2026
PV Tech Premium spoke with Crux on the trends to look forward in 2026 in the clean energy transferable tax credit market.
January 9, 2026
The US has withdrawn from a number of UN climate organisations, including the Framework Convention on Climate Change, International Renewable Energy Agency (IRENA) and Intergovernmental Panel on Climate Change.
January 9, 2026
The Governor of Illinois, JB Pritzker, has signed a clean energy bill into law that will boost solar PV and energy storage investments in the state, among others.
January 8, 2026
ENGIE and Ampion added new solar capacity, Reactivate plans to build on landfill sites and Pivot has completed the first phase of a portfolio.

Upcoming Events

Solar Media Events
February 3, 2026
London, UK
Solar Media Events
March 24, 2026
Dallas, Texas
Solar Media Events
April 15, 2026
Milan, Italy
Solar Media Events
June 16, 2026
Napa, USA
Solar Media Events
November 24, 2026
Warsaw, Poland