What is Solar Energy Cost and Data Analysis?
Solar energy cost analysis examines hardware and non-hardware (soft) manufacturing and installation costs, including the effect of policy and market impacts. Solar energy data analysis examines a wide range of issues such as solar adoption trends and the performance and reliability of solar energy generation facilities. Data analysis informs stakeholders in the solar industry including electric utilities, regulators, local and state governments, public interest groups, and academia. By merging cost analysis with data analysis, it is possible to determine the average cost of electricity over the operational life of solar energy facilities. Learn more about solar energy soft costs.
Why is Cost and Data Analysis Important?
Understanding how solar energy costs change over time and their impact on rate of solar deployment helps the U.S. Department of Energy (DOE) Solar Energy Technologies Office (SETO) identify opportunities to pursue additional research and development projects. This work includes technoeconomic analysis of photovoltaic (PV) and concentrating solar-thermal power (CSP) technologies; analysis of electricity markets, solar access, and environmental impact; and analysis of PV integration into the grid to minimize cost while improving resiliency.
Beyond the direct hardware costs, analysis related to soft costs informs research on the impact of different electricity markets on the growth and value of solar, the barriers to solar adoption, and the valuation and operational performance of solar plus storage. These insights are complemented by advances in data-driven tools.
One critical area is solar forecasting. Data generated through improved solar forecasting helps utilities and grid operators better understand when, where, and how much solar power will be produced at any given time and helps solar facility owners participate in energy markets. As more solar power is added to the grid, forecasting data enables increased grid flexibility and increased incorporation of solar into the energy mix.
Ultimately, all these efforts depend on robust analytic and computational tools. These tools enable researchers to develop technical solutions to support all solar stakeholders.
SETO’s Research in Cost and Data Analysis
Most of SETO’s analysis is conducted by DOE’s national laboratories. Some of SETO’s analysis programs include:
- The Solar Energy Technologies Office Lab Call FY25-27 Funding Program – These projects analyze topics such as the barriers to and potential of solar+storage hybrid facilities, calculate national solar supply curves to help stakeholders understand siting costs and constraints, and build a database of solar energy development ordinances.
- The Solar Energy Technologies Office Lab Call FY19-21 Funding Program – These projects developed tools to enable better understanding of the solar industry, plan for change and disruption, and identify areas of future technological innovation.
- The Solar Forecasting 2 Funding Program – These projects used data to improve the management of solar power’s variability, enabling its more reliable and cost-effective integration onto the grid.
Additionally, SETO funds the National Laboratory of the Rockies (NLR) to conduct solar techno-economic analysis that examines costs, benefits, risks, uncertainties, and timeframes to evaluate solar energy technologies. This work is summarized in an annual PV System Cost Benchmark report. NLR also releases the Quarterly Solar Industry Update, which examines technical and economic trends within the solar industry, focusing on global and U.S. supply and demand, module and system characteristics and prices, investment trends and business models, and updates on U.S. government programs supporting the solar industry.
SETO also funds the Lawrence Berkeley National Laboratory (LBNL) to conduct solar market analysis that examines factors that influence the deployment of solar photovoltaics in the United States. Two key annual reports are Tracking the Sun, which focuses on small (residential and commercial-scale) PV systems, and Utility-Scale Solar, which focuses on large PV systems (over 5 megawatts alternating current).