this post was submitted on 14 Jul 2025
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My numbers were wrong:
https://www.nrel.gov/solar/market-research-analysis/solar-installed-system-cost
Hardware costs (module, inverters, etc.) are about half the price of the installed residential cost. The rest is "soft costs", and labor is included in it, but it's a pretty small fraction of it. The "other" soft costs are the big thing--stuff like permitting and planning and sales taxes. Better efficiency might somewhat lower it, but not a lot.
Notice that when things get to utility-scale, those soft costs shrink a lot. The best way to do solar is in large fields of racks, and it isn't even close. The solution to this is community solar, where you and your neighbors go in on a field. Some states ban this, and that should change.