Solar Leaders Applaud New PV Cost Study That Shows Government Policies Reduce Installed Costs, Expand U.S. Solar Market

WASHINGTON--(Business Wire)--
Today researchers at Lawrence Berkeley National Lab released "Tracking the Sun
II: The Installed Cost of Photovoltaics in the U.S. from 1998-2008." The new
report found that the average cost of going solar in the U.S. declined by more
than 30 percent from 1998 to 2008, a trend that can be largely attributed to the
success of market-building policies at the state and local level. Findings also
show that, after a three-year plateau, costs decreased by 3.6 percent from 2007
to 2008, marking a pivotal year for the American solar industry. The full report
may be downloaded at http://eetd.lbl.gov/ea/emp/re-pubs.html.

Solar advocates from the Vote Solar Initiative, the Solar Alliance and the Solar
Energy Industries Association issued the following statements in response to the
report.

"The bottom line is that affordable solar is no longer a vision for the future,
it`s very much here now, ready to be a significant part of our nation`s energy
mix," said Adam Browning, executive director of the Vote Solar Initiative, a
national grassroots organization focused on bringing solar energy into the
mainstream. "This all means there has never been a better time for energy
customers to go solar or for our government leaders to invest in building a new
solar economy."

"This report confirms that as a policy investment, solar is one of the best
values for the American taxpayer," said Rhone Resch, president and CEO of the
Solar Energy Industries Association, the industry`s national trade association
based in Washington, D.C. "This year we`ve already seen solar PV panel prices
drop another 17 percent. Congress must prioritize the use of solar in the
current energy bill, which will stimulate further investments in manufacturing
and installation of solar equipment. This in turn will create good-paying jobs,
while bringing the cost of solar in line with traditional sources allowing more
consumers to go solar now."

"Smart solar policies are intended to build self-sustaining, strong markets that
drive installed costs down. Berkeley Lab once again shows that these policies
can and do work. In states like California and New Jersey that have committed to
supporting renewables, solar energy has in fact become more accessible for
consumers and created strong local green economies," said Carrie Cullen Hitt,
president of the Solar Alliance, a state-focused alliance of the solar industry.

"Tracking in the Sun" is the most comprehensive cost analysis of grid-connected
photovoltaic systems in the U.S. This second edition analyzes data from more
than 52,000 residential and non-residential PV systems that were installed
between 1998 and 2008. In 2008, the U.S. solar market experienced record growth,
nearly doubling the amount of grid-connected PV installed annually. Key findings
of "Tracking the Sun II" include:

* Average installed costs as paid by the system owner prior to receipt of any
incentives, declined from $10.80 per watt (W) in 1998 to $7.5/W in 2008,
equivalent to an average annual reduction of $0.3/W, or 3.6 percent per year in
real 2008 dollars.
* The primary driver over that 10-year period was a reduction in non-module
costs such as the cost of labor, marketing, overhead, inverters, and the balance
of systems.
* In contrast, the decline in costs from $7.8/W in 2007 to $7.5/W in 2008 is
primarily attributable to wholesale module costs, which decreased by
approximately $0.5/W over this period.
* PV installations benefit from significant economies of scale, suggesting
support for larger systems and larger markets drives down costs.
* The installed cost of solar varies widely by state with low costs found in
Arizona, California, and New Jersey, an indicator that more mature markets
driven by strong incentives help reduce the cost of solar.
* Total after-tax incentives from federal, state and local governments also
declined from 2007 to 2008; the decreased incentives outpaced the drop in
installed costs leading to a slight rise in the net installed costof both
residential and commercial systems.

Though the report only analyzes trends through the end of 2008, the continued
decline of module prices and improved federal incentives for solar energy in
2009 mean there has never been a better time for Americans to go solar.

About the Vote Solar Initiative:

Vote Solar is a non-profit grassroots organization working to fight climate
change and foster economic opportunity by bringing solar energy into the
mainstream. Since 2002 Vote Solar has engaged in state, local and federal
advocacy campaigns to remove regulatory barriers and implement the key policies
needed to bring solar to scale. www.votesolar.org

About SEIA:

Established in 1974, the Solar Energy Industries Association is the national
trade association of solar energy industry. As the voice of the industry, SEIA
works to make solar a mainstream and significant energy source by expanding
markets, removing market barriers, strengthening the industry and educating the
public on the benefits of solar energy. Learn more at www.seia.org.

About the Solar Alliance:

The Solar Alliance is a state-focused association of solar equipment
manufacturers, integrators, and financiers specifically working with state
administrators, legislators and utilities to establish cost-effective solar
policies and programs. www.solaralliance.org

Vote Solar
Rosalind Jackson, 415-817-5061
rosalind@votesolar.org
or
SEIA
Monique Hanis, 202-556-2885
mhanis@seia.org
or
Solar Alliance
Carrie Cullen Hitt, 617-688-9417
carrie@solaralliance.org

Copyright Business Wire 2009