Alternative Profits Blog

Solar PV Capital Costs - Solar PV Capex, Capital Expenses

Solar PV has been hampered by high capital costs; in fact, solar photovoltaic has the highest cost for electricity generation, among renewables. The operating costs for solar PV are very little, as it is a fairly passive technology with no moving parts; the high cost of energy generation from solar PV is primarily owing to the very high capex.

Fortunately, the capital costs of solar photovoltaic power plants have been coming down significantly last few years.

As of mid 2009, capital costs for large-scale solar PV will cost about $ 5 million per MW.

The cost for solar panels is about 60% of the cost; the rest of the capex is for balance of systems, such as the inverter, battery and the control systems.



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